In 2012, the Government OF Bangladesh decided to stop the illegal import of mobile phones into the country to curb unlawful activities that would carried out using those devices.
To stop the illegal import of mobile phones, the government set up the National Equipment Identity Register (NEIR) with around Tk30 crore in 2021.
Bangladesh Telecommunication Regulatory Commission (BTRC) launched the 3-month-long test trial on 1 July of that year.
However, the government did not implement it as a fully functional mechanism for different reasons.
As a result, domestic mobile phone manufacturers are bearing the brunt.
Mustafa Jabbar, the then minister for Posts and Telecommunications inaugurated the mechanism at a virtual programme presided over by the then BTRC Chairman Shyam Sundar Sikder.
BTRC officials at the programme said that the introduction of NEIR will stop the use of illegal handsets as well as reduce crime related to mobile phone theft.
They also said that NEIR will aid in the expansion of the domestic mobile phone industry and in turn, the government's revenue generation from the sector will increase.
At the time, BTRC also launched awareness programmes - recommending mobile phone users to check the legality of any mobile device before making a purchase.
Users should also collect and preserve their purchase receipts, it advised.
They also said that mobile devices bought from foreign countries would also be automatically activated in the network but users would have to register within 10 days of activation.
If they do not do that, their mobile phones would be considered illegal and users would be informed through SMS during the three-month observatory period.
Moreover, the telecom regulator introduced the first database of mobile phone IMEI numbers to curb illegal imports in 2019.
Downsizing the domestic mobile making
Last month local mobile manufacturers demanded the activation of the NEIR pointing out that illegal and informal channels currently capture about 35-40% of the overall handset market in the country.
Jakaria Shahid, president of the Mobile Phone Industry Owners' Association of Bangladesh (MIOB), told Bangladesh First more than 35% of the market is occupied by the grey market - an unofficial market in goods that have not been obtained from an official supplier.
He said that If the grey market increases further, then it will be more uncertain for mobile-making companies.
“Our main obstacle is the grey market. If the grey market is shut then the local manufacturing will flourish,” said Jakaria Shahid.
He said he does not see any logical reason behind the inactivation of the NEIR.
“It is also the responsibility of the BTRC to stop the illegal business. It is a lame excuse that NBR will take measures as it involves revenue,” said Jakaria Shahid.
“If this 35% did not come through the illegal channel, either they could buy the mobile phone from us or legally import it. Then the government would have earned revenue,” he added.
MIOB said a total of 17 mobile handset factories have been established in the country and these domestic factories are meeting 99% of the local demand for handsets.
However, local mobile factories are facing serious challenges because of a spike in illegal imports of handsets.
“The factories can also run at their full capacity. The backward linkage would be more secure. We are going to more value-added products like 4G, 5G,” MIOB president said.
Before 2018, all mobile handsets in the country were imported.
However, when the government provided incentives, major importers gradually established local factories.
According to BTRC statistics, local firms produced 2.33 crore mobile phones in the January-December period last year, down 26.35% from the 3.17 crore units manufactured in the same period a year earlier.
MIOB said they do not know why the implementation of the NEIR is halted.
“I think the government should implement the project in the national interest, regardless of any individual or groups,” MIOB chief Jakaria Shahid said.
BTRC officials said that they will not block any mobile phone for being illegal or not registered.
When contacted, BTRC secretary Nurul Hafiz said, “If the law enforcement agency or NBR asked us to deactivate any mobile phone, otherwise BTRC will not block anyone’s mobile. This is our decision.”
“We will normally not block anyone’s mobile set,” the official added.
Former telecom minister Mustafa Jabbar was very active NEIR project to stop illegal importing of mobile phones.
When asked why he did not activate the NEIR, Mustafa Jabbar said, “We have around one crore of migrant workers. They can bring one or two mobile phones for their family and relatives. It brought a lot of suffering for them when they could not use these phones because of the NEIR.”
“Considering this fact, a top-level government official instructed not to make NEIR compulsory. When a law enforcement agency asks us to block specific phones, then we will do so,” he said.
