NEIR to boost local high-end mobile production, curb grey market

Mobile phone assemblers today said the introduction of the National Equipment Identity Register (NEIR), a system to identify and block unauthorised handsets, will allow local companies to manufacture high-end phones and sell them at prices comparable to the grey market.

"Without the NEIR system, we cannot produce high-end phones locally because the grey market affects the prices," said Jakaria Shahid, president of the Mobile Phone Industry Owners' Association of Bangladesh (MIOB), at a press conference at the Dhaka Reporters Unity.

"Once the system is in place, we will be able to produce high-end phones and offer them to customers at prices close to what they currently pay," he added.

The grey market, also called a dark market, involves trading goods through unofficial or unauthorised channels, outside the original manufacturer or trademark owner.

The NEIR system is scheduled to take effect on December 16.

Meanwhile, mobile phone traders suspended their blockade outside the Bangladesh Telecommunication Regulatory Commission (BTRC), which they had staged to demand a delay in the NEIR rollout and lower import taxes on mobile phones. The suspension came after the regulator agreed to reform the NEIR system.

Protesters also claimed that the introduction of NEIR will push up the prices of handsets.

Shahid rejected these claims, saying these rumours are being spread to protect the interests of a specific group.

He added that the grey market is currently the biggest challenge for the mobile industry in Bangladesh. It controls a large share of the market, worth Tk 6,000 crore, and causes the government an annual revenue loss of over Tk 2,000 crore.

"This is not just a financial loss," Shahid said. "The use of insecure devices also threatens cybersecurity, users' personal information, and national financial stability."

He added that a certain group is spreading false information, claiming that a 57 percent duty will be imposed once the NEIR system is launched. In reality, the 57 percent duty on mobile imports was introduced back in 2019.

According to the association, Bangladesh's mobile industry currently has 18 manufacturing companies, with over Tk 3,000 crore in foreign and local investment, providing direct employment to 50,000 workers.

The country can produce 15 lakh smartphones and 25 lakh feature phones per month, but 30–40 percent of this capacity remains unused due to pressure from the grey market.

The industry contributes significantly to the national economy, paying more than Tk 2,000 crore in taxes, Tk 500 crore in wages, and Tk 400 crore in utility bills annually.