What's Happening?
The Mobile Phone Industry Owners Association of Bangladesh (MIOB) has announced that the National Equipment Identity Register (NEIR) will be implemented on December 16. This initiative aims to reduce mobile phone prices by curbing illegal imports and
fostering a fair market environment. Currently, Bangladesh faces one of the highest tax burdens on mobile phones in the region, which has led to inflated device prices. Zakaria Shahid, president of MIOB, highlighted that discussions with the Bangladesh Telecommunication Regulatory Commission (BTRC) have led to initiatives to rationalize the tax structure. This move is expected to lower the prices of imported phones and allow local manufacturers to expand production, thereby reducing costs. The NEIR will ensure that only legal and approved devices operate on mobile networks, effectively shutting out unauthorized phones and restoring a level playing field.
Why It's Important?
The implementation of NEIR is significant for Bangladesh's economy and digital security. By curbing the Tk6,000-crore grey market, the government stands to recover over Tk2,000 crore in annual revenue. This move also addresses cybersecurity risks and enhances national digital resilience. The mobile manufacturing sector, which has grown into a major economic contributor with 18 active factories and over Tk3,000 crore in investment, will benefit from increased production capacity and reduced competition from illegal imports. Additionally, the initiative supports legitimate businesses and helps build a secure and sustainable mobile ecosystem in Bangladesh.
What's Next?
Following the implementation of NEIR, the mobile phone market in Bangladesh is expected to undergo significant changes. Local manufacturers may see an increase in production and sales as illegal imports are curtailed. The government will likely monitor the impact on tax revenue and digital security closely. Consumers may benefit from reduced prices and a wider selection of legal devices. The MIOB has clarified that the NEIR will not disrupt the pre-owned or refurbished phone market, ensuring that legally registered devices can still be resold. The success of NEIR could lead to further regulatory measures to strengthen the mobile phone industry and digital infrastructure in Bangladesh.
