BTRC to offer new licences to mobile handset makers

The telecom regulator has decided to offer new licences to local mobile handset manufacturers in order to boost domestic production.

“We have decided to issue fresh licences to the mobile handset makers,” a senior official at the Bangladesh Telecommunications Regulatory Commission (BTRC) told the Business Insider.

At least four new licenses will be offered and currently, 11 companies are in operation, according to him.

“The local mobile handset manufacturing industry experienced a huge boom in the last two years. And new companies showed interest in entering the market," said the official, asking not to be named.

The country’s total handset market size is Tk10,000 crore, he estimated adding that every year around 50 lakh illegal handsets enter the country. “To stop that, we need to increase the local production," he said.

According to BTRC data, the total number of mobile handsets manufactured in the 2019-20 fiscal year was over 1.46 crore units, making up 51% of the market.

Industry insiders said that the tax benefit for local handset assemblers turned the tide against importers within a short time.

Currently, there is 57% customs duty on smartphone import while the duty on components of locally assembled smartphones is 15%.

Chattogram Custom House figures showed that spare part imports through the customs increased from Tk101 crore in the 2017-18 fiscal year to over Tk419 crore in FY2019-20.

Local brand Walton was the first in the country to assemble mobile phone handsets in its own plant in October 2017. In FY2018-19, the government allowed 10 more companies to begin assembling mobile phone handsets locally.

The companies are Fair Electronics, EDISON Industries, Carlcare Technology BD, Al-Amin and Brothers, Anira International, OK Mobile, Transsion Bangladesh, Grameen Distribution Ltd, Bangla Tronics and Best Tycoon (BD) Enterprise.