Streets in the capital and beyond have been gripped by tumult as the government’s long-planned National Equipment Identity Register (NEIR) system entered its operational phase.
Designed to create a centralized database linking mobile handsets to their International Mobile Equipment Identity (IMEI) numbers, the policy is aimed at curbing illegal imports, stolen devices, tax evasion and a thriving grey-market economy.
But for thousands of mobile phone retailers, this regulatory shift has ignited what they call an “existential crisis” — leading to nationwide protests, vandalism of regulatory offices and an indefinite shut-down of phone shops across the country.
Market in crosshairs
Bangladesh’s mobile phone market, one of the most vibrant in South Asia, has for years been dominated by a robust grey market.
Traders and consumers alike have long relied on imported unofficial — or “unauthorized” — handsets that circumvent high duty structures but provide significantly lower prices to end users.
According to industry sources, 60–90% of phones in active use fall into the unregistered or grey category, reflecting both consumer preference for affordability and the scale of unofficial import channels.
Under the NEIR system, every handset operating on a Bangladeshi network must be registered in a central database.
The IMEI — a unique 15-digit identifier — will be mapped against a user’s National ID (NID), linking SIM cards, devices and user identities in a “centralized digital registry” maintained by the Bangladesh Telecommunication Regulatory Commission (BTRC).
In theory, this will enable regulators to block stolen, cloned or illegally imported devices from accessing local networks.
But for many retailers, this isn’t just regulatory modernization; it’s economic annihilation.
The Mobile Business Community Bangladesh (MBCB), the trade body representing tens of thousands of small and mid-level phone traders, asserts that the sudden enforcement of NEIR will render a large share of their existing inventory effectively unusable — thereby eliminating business operations built over decades.
Protests intensify
The conflict erupted in earnest late in 2025 as the NEIR launch date — originally set for 16 December — approached.
Traders held sit-ins outside the BTRC headquarters in Agargaon, blocked major thoroughfares including Kuril and Pragati Sharani, and closed their shops nationwide.
In early December, shops in Dhaka and beyond were shuttered in protest, causing both economic disruption and significant commuter chaos as protesters blocked roads to draw attention to their grievances.
On January 1, 2026, tensions reached a boiling point — just hours after NEIR officially began enforcement.
Traders besieged and vandalized the BTRC building, throwing stones and damaging glass panels, windows and vehicles.
Police and security forces eventually dispersed the crowd, and dozens of protesters were arrested.
A subsequent court hearing ordered 45 individuals to be sent to jail in connection with the violence.
In the aftermath, the MBCB announced an indefinite closure of phone shops nationwide, asserting that authorities had implemented NEIR without adequately addressing their demands.
Traders criticised the government for what they described as “deceptive promises” — alleging that assurances of a grace period before enforcement were ignored.
Core demands
At the heart of the dispute are economic and procedural demands that mobile retailers argue have been largely overlooked in the NEIR rollout.
- Tax reduction on mobile handsets
One of the most contentious points has been the import duty structure for mobile devices.
Prior to NEIR’s implementation, cumulative duty and VAT rates on imported phones reportedly topped 61.8%, a figure retailers argue makes legally imported devices unaffordable for the average consumer and undermines small retailers’ competitiveness.
In response to pressure, the government has cut total duties to 43.43% for authorized handsets, far less than the earlier rate but still significantly higher than many traders’ expectations. Retailers have demanded a reduction to between 5–20%, aligning with global practices, asserting that the current rate still makes authorized phones prohibitively expensive and jeopardizes their ability to sell competitively.
- Reform vendor enlistment and import processes
Retailers also want simplifications in import documentation and vendor registration. Official import pathways require proof of authenticity from manufacturers — a requirement many small traders say is unrealistic or overly burdensome given their sourcing processes. They have asked for streamlined procedures that allow easier entry into the authorized market.
- Delay/reform NEIR implementation
Many shop owners have urged the government to delay NEIR’s full rollout to allow time for inventory clearance, policy adjustments and collaborative dialogue. Some even suggested pushing the launch by a year — in part to cushion the impact on traders and give the government time to consider more “business-friendly” modalities.
Public concerns
Amid the protests, another wave of public unease has emerged — centred on confusing data in the NEIR system itself.
Shortly after launch, thousands of subscribers discovered an inflated number of handset registrations under their NIDs.
This reportedly occurred because operators uploaded historical handset data en masse into the system, including older devices and multiple registered devices per NID, creating a bewildering picture for consumers.
Some residents reported seeing unusually high counts tied to their national IDs, raising fears over data privacy, misuse and security.
These anomalies have compounded the frustration felt by many, even as authorities insist that technical teams are working behind the scenes to refine and correct database entries.
Government response
Throughout the turmoil, government officials — including Faiz Ahmad Taiyeb, the special assistant to the chief adviser on ICT affairs — have sought to contextualize the NEIR rollout and defend its rationale.
Taiyeb’s comments paint a picture of a system introduced with legitimate motivations for national security, regulatory control, and consumer protection, while also acknowledging operational challenges that warrant patience and cooperation.
- After NEIR’s launch, “terrible information” emerged about widespread fake IMEI numbers — sequences like 111111111111, 0000000000000, and 9999999999999 appearing in the database in large numbers.
- Millions of devices with dubious IMEIs are currently connected to mobile networks.
- Despite this, the government has not initiated immediate blocking of these devices and plans to avoid moves that would disrupt public life. Instead, such devices will be designated as “grey” rather than shut down outright.
- There is strong concern that many fake or low-quality handsets in circulation have never undergone mandatory safety tests, including radiation and SAR (Specific Absorption Rate) assessments.
- These phones are widely used across all four mobile networks and represent a potential risk to consumer safety.
- Authorities received over 3 billion data sets from operators, including historical records, which temporarily inflated active handset counts per NID.
- This will be resolved over time as historical records are archived and only actively used devices are displayed in the NEIR system.
- The system will undergo additional Vulnerability Assessment and Penetration Testing (VAPT) to bolster its security.
- Data access protections — including secure digital tokens and new rate limits — have been implemented to ensure that IMEI responses can only be accessed via secure NID-based API requests, making misuse more difficult.
- By tying SIMs and devices to NIDs, citizens will be able to know how many SIMs and devices have been registered under their identity — information Taiyeb argues is vital for curbing financial crimes linked to mobile banking or online gambling.
- Historical allowances that permitted up to 20 SIMs per NID (reduced now to 10) have contributed to the inflated device counts — another reason for confusion during the transition.
- No illegal or cloned handsets will be disconnected in the immediate term; a 90-day grace period is planned to allow for adjustment and registration opportunities.
- The government insists this phase-in is deliberate, aimed at giving both traders and consumers time to comply without sudden service disruptions.
Looking ahead
The NEIR rollout marks a significant regulatory shift for Bangladesh’s mobile ecosystem — arguably one of the most ambitious IMEI-tracking regimes in the region.
At its core, it seeks to tackle illegal imports, protect consumers, and bring order to a fragmented market.
But the technology’s promise has collided with market realities: a deeply entrenched grey market, high tax burdens, and the livelihoods of thousands of small retailers.
As tensions simmer, the government faces rising pressure to balance enforcement with economic prudence, while retailers and civil society urge a more inclusive dialogue.
Whether NEIR will ultimately transform Bangladesh’s telecom landscape or deepen divisions between regulators and traders depends on the coming weeks of negotiation, patience and policy refinement.