NEIR Now: Neutralising the Grey-market
Seventeen mobile handset manufacturers in Bangladesh have invested about Tk 2,500 crore over the past eight years to build local production capacity, creating employment for more than one hundred thousand workers. To curb the growing threat from illegal imports and the grey market, the Bangladesh Telecommunication Regulatory Commission (BTRC) is set to activate the National Equipment Identity Register (NEIR) on Victory Day.
The Mobile Industry Owners Association of Bangladesh (MIOB) welcomed the regulator’s renewed push to implement NEIR and urged authorities to ensure the system is not halted again.
At a press conference on Wednesday, 5 November, held at a restaurant in Moghbazar, Dhaka, MIOB President Jakaria Shahid warned that “around 60 percent of the mobile phones in the market are illegal,” causing the government an estimated revenue loss of Tk 2,000 crore. He appealed to the government to reduce the tax disparity between imports and local production, noting that although component costs for locally produced phones have risen by 60 percent, manufacturers have not passed those costs on to consumers.
Shahid also accused vested interests of spreading misinformation about NEIR. “A segment is creating panic among ordinary customers about NEIR,” he said, adding that “these are the so-called ‘luggage party’ traders who have built businesses around stolen, counterfeit, copycat and refurbished handsets.”
Responding to concerns about potential price hikes, he emphasised: “If NEIR is implemented, the price of mobile phones will not increase by even one taka. Government revenue will reach thousands of crores.” On how NEIR will treat returning expatriates or foreign nationals whose handsets might be blocked, Shahid said they would be given 30 days to register their devices online.
MIOB Vice President Redwanul Haque said all major global brands—except one—now have production in Bangladesh, meeting roughly 90 percent of domestic demand. “We are operating at only 40 percent of our full capacity,” he said, adding that many local manufacturers produce their own PCBs and motherboards and are capable of delivering devices to global standards. He urged that NEIR must never be suspended: “Even if initial software issues arise, they can be overcome. NEIR must never be switched off again.”
Redwan projected significant market growth from NEIR implementation, telling journalists that the current mobile market is about Tk 20,000 crore and that successful NEIR rollout could add another Tk 15,000 crore to that figure.
Speakers from industry also reinforced the call for stamping out the grey market. Zahirul Islam, Managing Director of Smart Technologies Ltd. and head of the local Honor manufacturer, said compliance makes doing mobile business straightforward and that many are ready to cooperate. “Mobile phones are now our bread and butter. Local production has generated substantial employment,” he observed, warning that most iPhones in the market enter illegally and yield no revenue for the state. He called NEIR “a noble initiative that benefits everyone,” accusing those who oppose it of acting against national interest.
Saifuddin Tipu, Executive Director of Excel Telecom (Samsung’s authorised distributor), said the grey market is largely composed of refurbished and stolen units; by contrast, local production meets global standards and can fulfil domestic demand while opening export potential.
Imam Uddin of Vivo Bangladesh, who also serves as MIOB’s finance secretary, noted that mobile devices are classed as radio equipment and require BTRC approval for import. “Anyone can enter this business by applying to the BTRC; there is no scope for monopoly,” he said.
The press conference was moderated by MIOB CEO Monirul Islam and attended by other industry representatives, including members of the Bangladesh Mobilephone Distribution Association and mobile consumer groups, who said they too would benefit from a cleaner, regulated market under NEIR.
DBTech/IH/OR
