Victory Day Verdict: Grey or White — The NEIR Divide
From this year’s Victory Day, December 16, the government of Bangladesh is set to officially launch the National Equipment Identity Register (NEIR) — an initiative nearly a decade in the making, designed to eliminate illegal mobile handsets from the country. Under the new system, all previously unregistered or cloned phones operating on the nation’s networks will automatically become legal once the system goes live. Thereafter, no unregistered handset will be allowed to operate on any Bangladeshi network.
However, the move has sparked anxiety not only among “unofficial” handset importers but also among general consumers. Many buyers argue that the price of an “official handset” — imported legally with VAT and tax — is often one-and-a-half to two times higher than that of its “unofficial” counterpart. This price disparity has, over time, driven a surge in the grey market for unofficial handsets.
According to the Bangladesh Telecommunication Regulatory Commission (BTRC), around 60 percent of the handsets in circulation evade VAT and import duties. Industry insiders, however, claim the figure exceeds 90 percent. They argue that most of the devices currently available in shops are unofficial and are urging the authorities to include them within the new regulatory framework rather than exclude them entirely.
Sources say that after the BTRC announced a “zero tolerance” policy and fixed a deadline for NEIR enforcement, traders dealing in unofficial phones — particularly in markets such as Motaleb Plaza in Hatirpool, Bashundhara City Shopping Mall, and Jamuna Future Park — have begun lobbying influential quarters. On October 30, members of the executive committee of the Mobile Business Community, representing unofficial handset sellers, met top BTRC officials at the regulatory headquarters in Agargaon to plead their case.
“Our market share in the handset business is about 90 percent,” said the organization’s president, Md. Aslam. “Our products reach every corner of the country, and about one to one-and-a-half million families depend on this trade. Now they are saying what we’ve been selling for years is illegal. If this business shuts down, these people will starve. We met BTRC today (Thursday) and requested them to reduce import taxes so that we can also bring in products legally by paying VAT and duties.”
In response, BTRC Chairman Emdadul Haque Bari clarified, “Through NEIR, we are bringing every handset under registration. We are not stopping imports, nor are we imposing restrictions on them. NEIR is being introduced to block those who import devices illegally.”
When asked whether BTRC anticipates any challenges this time, given that similar attempts in 2021 and 2024 had failed, Bari explained: “There is a difference between physical-world security and telecom or cyber security. In the physical world, if someone carries a weapon, the risk is visible, and even an archway can detect it. But ensuring safety in cyberspace is far more complex. Even minimal security enforcement can burden ordinary people and cause inconvenience. That’s our biggest challenge. Technically, we could shut everything down from December 16, but that would severely disrupt daily life. So, we’re starting gently — very loose, very mild — and will tighten gradually, like pulling a rope. Our biggest challenge is to minimize public suffering.”
Faiz Ahmad Taiyeb, Special Assistant to the Chief Adviser on Post, Telecommunications, and Information Technology Affairs, echoed the rationale behind NEIR’s introduction: “Illegal phone imports cause annual revenue losses of around BDT 500 crore. Once NEIR becomes effective, this loss will be reduced. These illegal phones enter the country duty-free, often unpacked and in cartons to save space. We want to bring about a transition without harming these traders — that’s why we’re giving them time to close these grey import channels. Once NEIR is active, we will no longer allow ‘grey handsets’. The market will either be black or white.”
Despite assurances, skepticism remains high among both the public and traders. Previous NEIR implementations were short-lived, and the system itself was initially financed by the business community. Many ordinary customers believe that if domestically manufactured or officially imported phones were sold at affordable prices, the grey market would naturally shrink. At the same time, they stress that the livelihoods of thousands of small traders involved in the unofficial handset trade should not be jeopardized overnight.
As Bangladesh prepares to roll out NEIR on Victory Day, the question looms large — who will ultimately win this digital battle: the grey market or the white market, the official or the unofficial?
