Local phone makers deny NEIR-linked price hikes, blame rising global component costs

Domestic handset manufacturers reject syndicate claims, cite global component price hikes

Local mobile handset manufacturers have rejected allegations that they are raising prices by exploiting the implementation of the National Equipment Identification Register (NEIR), dismissing claims of cartelisation made by a section of retailers and traders.

The issue has sparked debate on social media, with some retailers and traders alleging that domestic manufacturers are taking advantage of the government-backed registration system to push up prices.

Leaders of the Mobile Phone Industry Owners' Association of Bangladesh (MIOB) denied the allegations at a press conference held at a city hotel on Tuesday, instead claiming that they are incurring losses.

They said global prices of mobile handset components have increased sharply, forcing manufacturers to adjust prices. However, MIOB President Zakaria Shahid said local companies have not raised prices proportionately and are absorbing part of the losses themselves.

In November and December, MIOB leaders had repeatedly assured at press conferences that the implementation of NEIR would not lead to higher handset prices. They had even said that full-capacity factory operations could eventually reduce prices and open export opportunities.

The Bangladesh Telecommunication Regulatory Commission (BTRC) is implementing the NEIR system with funding from MIOB. The decision has been strongly opposed by Mobile Business Community Bangladesh (MBCB), a group representing grey-market phone traders, who continue to stage street protests.

Protests have included demonstrations outside Jamuna Future Park and Bashundhara Market, and there has also been an attack on the BTRC building during the unrest.

The government enforced NEIR from Jan 1. On the same day, grey-market traders attacked the BTRC office, leading to the arrest of 45 people. Since then, traders have demanded the release of those arrested, suspension of NEIR, and permission to import used phones, staging road blockades, human chains, and shop closures.

The government says grey-market traders evade taxes by bringing in low-quality, cloned, used, and refurbished phones through illegal routes. NEIR aims to stop tax evasion and prevent such devices from entering the market. Once implemented, illegally imported phones and personally brought-in used phones will no longer be usable.

Opposing the move, MBCB President Md Aslam has repeatedly warned that NEIR would allow a syndicate to dominate the market and increase handset prices. Traders have accused local manufacturers of conspiring to raise prices, though the extent of any price hike could not be independently verified.

Responding to the allegations, MIOB President Zakaria Shahid said global component prices have surged. “Memory that used to cost $10 now costs $35,” he said, citing limited chipset production capacity as manufacturers shift resources to AI-driven IoT devices.

Zakaria, who is also managing director of Edison Group (Symphony), said Bangladesh has not seen price increases matching global trends. “The price of memory has risen due to technological shifts, but we are not increasing 4G phone prices at the same rate. We are absorbing the losses,” he said, adding that prices are being adjusted gradually in line with global costs.

He said this gradual price increase may continue throughout the year and urged sceptics to verify global prices independently. He maintained that the price rise has no connection with the NEIR system.