Crackdown on illegal phones to benefit local industry

Starting 16 December 2025, Bangladesh will fully enforce the National Equipment Identity Register (NEIR), blocking all unauthorised, smuggled, cloned, or unregistered mobile phones from accessing telecom networks. Each device's IMEI will be matched with the user's NID and SIM registration. Phones already in use will be auto-registered, with the main impact falling on new or illegally imported handsets. The government aims to curb an illegal handset market estimated at 40 per cent of total sales and recover Tk 500-2,000 crore in lost revenue. The domestic mobile manufacturing and assembly industry is expected to benefit from improved demand as grey-market competition shrinks. NEIR is also anticipated to reduce digital fraud, with 73 per cent of mobile financial scams reportedly involving illegal or unregistered devices.

Retailers and grey-market traders face the risk of unsellable inventory, financial losses and potential customer backlash. Consumers must verify their device IMEIs by sending an SMS (KYD <space> IMEI ? 16002), and foreign-bought phones must be registered on the NEIR portal to avoid network denial. Local manufacturers are likely to see increased demand and will need to scale production. Tax and customs authorities can expect reduced duty evasion but will require strong coordination to enforce the system effectively. Telecom operators will need robust mechanisms to check device legality.

The rollout of NEIR is expected to stabilise or even lower legal handset prices as grey-market supply declines. Illegally imported used phones may lose value, affecting the second-hand market, while importers relying on informal channels will have to transition to formal, duty-paid systems. Overall, the NEIR rollout marks a major transformation in Bangladesh's handset ecosystem, aiming to improve government revenue, reduce fraud, and strengthen local manufacturing while shifting the market from grey-market dominance to fully legal and traceable supply chains.

Nirjona Hossain

North South University

BBA department