Bangladesh’s telecommunications regulator has postponed the implementation of its National Equipment Identity Register (NEIR) system, which was designed to combat illegal mobile handset imports, according to recent statements from officials. The delay comes less than a year after the BTRC announced plans to block unauthorized mobile phones by 2025.
The Bangladesh Telecommunication Regulatory Commission (BTRC) initially planned to implement NEIR but delayed the rollout due to concerns about potential public reaction to manual registration requirements, according to BTRC Chairman Shyam Sunder Sikder. The NEIR system would operate similarly to India’s Central Equipment Identity Register (CEIR), which tracks and blocks stolen mobile devices through their unique IMEI numbers.
The postponement occurs as Bangladesh’s mobile manufacturing industry struggles with significant challenges from grey market imports. Industry data indicates that unauthorized imports currently capture approximately 50 percent of the handset market, forcing local manufacturers to operate at half capacity. The situation threatens to undermine the country’s domestic manufacturing initiative, established in 2018.
Mohammad Mesbah Uddin, Chief Marketing Officer at Fair Electronics, Samsung’s local assembly partner, warns that continued grey market penetration could result in a 40 percent reduction in industry employment. The sector currently employs around 12,000 skilled workers, primarily diploma engineers.
Local manufacturers face a 5 percent VAT on sales and approximately 17 percent in combined VAT and taxes on locally produced devices. Grey market traders operate without contributing to tax revenue, according to Rizwanul Haque, Vice President of the Mobile Phone Industry Owners’ Association of Bangladesh.
The mobile manufacturing industry in Bangladesh has received investments of approximately Tk1,500 crore since its establishment. According to BTRC data, domestic manufacturers have the capacity to meet the country’s annual demand of 32 million handsets, demonstrating the potential for local production to fully serve the market if grey market imports can be effectively controlled.
While the NEIR implementation remains postponed, the BTRC continues to conduct enforcement operations against illegal mobile handsets. Chairman Sikder acknowledged that NEIR implementation could technically reduce grey market penetration but maintains the current delay. The situation parallels challenges faced by other South Asian nations, including Sri Lanka, which plans to implement similar IMEI registration requirements to combat unauthorized devices.
Sources: TBS News, TBS News, The Financial Express
