MNOs set to launch SIM-locked handsets

The country's mobile network operators (MNOs) are set to hit the market with SIM-locked handsets for expanding mobile penetration and maximum utilisation of 4G technology in the industry, according to insiders.
The Bangladesh Telecommunication Regulatory Commission (BTRC) sent a letter containing instructions to the MNOs on Tuesday to get prepared and bring the handsets to market.
The operators said they are working on the issue despite certain limitations in the BTRC's instructions.
However, the handset makers opined that the plan may not yield the best result, as the handsets would not have device-lock option.
The operators also see 12 months' EMI option as a constraint for making the BTRC plan successful.
According to the BTRC directives, customers will be able to purchase new phones by giving down-payment and then making monthly installments for rest of the price.
The down-payment will be between 20 per cent and 40 per cent of the phone price, and the monthly installments can be for a period of 3-12 months.
The BTRC has put some restrictions on the installment plan, like a phone must have at least two SIM slots, and one of these slots must be dedicated to the SIM of the operator selling the phone. The MNOs cannot impose any restriction on the second SIM slot.
It means that customers will not be able to switch operator of the locked-SIM without paying off the full price of the phone.
The BTRC stipulates that the MNOs and the local handset manufacturers would ink deals, and the MNOs would buy handsets from the manufacturers to market the devices.
The MNOs cannot import handsets, it spells out, saying that it is not the MNOs but the manufacturers who would deliver handsets to users directly.
The BTRC earlier initiated dialogues between the MNOs and the handset makers to help reach an agreement, but no consensus was reached. In 2021, it took similar initiative to allow the MNOs sell carrier- or network-locked handsets following an application of Robi Axiata. But the regulator had to step back, as two operators were against the move.
Meanwhile, Grameenphone (GP) spokesperson Hossain Sadat said they welcome the regulatory directive to offer handsets with SIM-locking modality (one SIM locked with a handset having dual or more SIM slots).
"This directive will enhance mass people's accessibility to smart-phones, and increase internet usage, enabling them to adopt digital life," he added.

Shahed Alam, Chief Corporate and Regulatory Officer of Robi Axiata Ltd, said the long-due initiative would pave the way for increasing smart-phone penetration in the country.
"We are closely working with the handset manufacturing companies to facilitate the initiative."
However, limiting the tenure for locking handsets to 12 months would hinder the overall objective of providing smart-phones to people at reasonable cost, he noted.
"We are hopeful of introducing the service for our customers within the quickest possible time," he added.
Chief Corporate and Regulatory Affairs Officer of Banglalink Taimur Rahman said they are checking different options to market the handsets.
"As the new directive is just issued, we are analysing how to provide this service to subscribers through various partnerships," he told the FE.
Joint Secretary of Mobile Phone Industry Owners' Association Mesbah Uddin said the move is definitely great, but restrictions put by the regulator would not bring the targeted result.
He said device-lock option and one-slot SIM would have been great to ensure that the investors would ink the deal. "Now it is still risky for the handset manufacturers."
He also said the MNOs have already started talking with the handset makers to market the devices.
Mobile-phone handset manufacturing in Bangladesh declined 41 per cent in May from April and sales also contracted, as high inflation and costly dollar dent the import-substitute industry.
About 0.872 million phone units were manufactured in May, while the number was 1.47 million in April.
Market insiders think that the marketing of network-locked handsets may push mobile sale and local production.
SIM-locking prohibits change of network by using a new SIM. This business model exists in Pakistan, India, Norway, Australia, Denmark, France and Germany.
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