NEIR to be introduced to curb revenue evasion on illegal mobile phones

The Bangladesh Telecommunication Regulatory Commission (BTRC) has taken an initiative to stop the loss of around Tk 2,000 crore a year in government revenue through illegal manufacture, smuggling and unauthorised sale of mobile phones.

To this end, it has planned to relaunch the National Equipment Identity Register (NEIR) in two phases from the start of next year. The system also aims to identify cloned handsets and stop fraud in mobile financial services (MFS).

According to an assessment by the National Board of Revenue (NBR), the government is losing around Tk 2,000 crore a year in revenue because of illegal mobile phones. This is stated in a working paper presented at a BTRC commission meeting.

Under the plan, the core functions of NEIR will be introduced in the first phase. However, the deregistration of handsets will not be enforced at this stage. Handsets currently active on mobile operators’ networks will be registered automatically. The IMEI numbers of handsets unsold with authorised importers and local manufacturers will also be entered into the system. There will also be provision to identify and shut down handsets that are illegally brought in from abroad, smuggled in, or marketed after evading duties and taxes.

In the second phase, deregistration of handsets will be introduced at an appropriate time. This is intended to verify phone ownership, identify cloned handsets and prevent financial fraud.

At the BTRC commission meeting, the director general of the commission’s Spectrum Management (SM) division presented a detailed working paper on relaunching NEIR. It said that after NEIR was launched on a trial basis in mid-2021, the key functions of automatically shutting down illegally imported phones and preventing cloned handsets were not introduced on the decision of the government of the time. As a result, the main purpose of establishing NEIR is being hampered.

The BTRC’s SM division will implement the plan. A formal letter will be sent to the Posts and Telecommunications Division to obtain the government’s prior approval for introducing the system in two phases.

Various agencies have long urged full introduction of NEIR to stop revenue evasion, ensure discipline in the telecom sector and address security risks. In late 2024, the NBR formally asked the BTRC to take steps to stop revenue evasion through illegal handsets. Then, in mid-2025, the Posts and Telecommunications Division gave preliminary approval to the plan to relaunch the system.

A high-level inter-ministerial meeting in late 2025 directed that NEIR be introduced fully on all networks in the country. Although preparations were in place to launch the system at the start of this year, the key functions of shutting down phones were not enforced, given the need to avoid public hardship.

Earlier this year, security agencies, in a formal letter, highlighted economic and national security risks and said NEIR needs to be introduced fully. Later the same year, an inter-ministerial meeting on IMEI, SIM registration and the risk of fraud in mobile financial services also recommended full introduction of the system.

Most recently, a high-level meeting chaired by the home minister a month ago was attended by representatives of the Posts and Telecommunications Division, Bangladesh Bank and law enforcement agencies. The meeting recommended introducing NEIR in two phases from the start of next year.

The related decision states that unregistered, stolen and cloned handsets are being used in organised crime, mobile phone theft and fraud in mobile financial services. Security agencies believe NEIR must be introduced fully to ensure the identity and accountability of every device used on the network.

Meanwhile, the BTRC has also approved a phased roadmap to end the use of mobile handsets that support only second-generation (2G) networks by the end of 2029. Under this plan, restrictions will be imposed on the approval, manufacture, import and marketing of such phones.