Regulator eases rules for handset import

The telecom regulator has eased conditions for importing mobile phones, which importers say will help reduce handset prices and improve quality.

As per a new decision, the approvals taken from the regulator for importing handsets will remain valid for six months.

Importers now receive a no-objection certificate (NOC) for three months only, which puts them in a tight schedule, said industry insiders.

In response to an application from Bangladesh Mobile Phone Importers' Association (BMPIA), the telecom regulator in a recent meeting took the decision, said Md Sarwar Alam, secretary of Bangladesh Telecommunication Regulatory Commission.

 The commission is convinced and believes that this change will boost the sector, said Alam.

Bangladesh imported 27.1 million handsets worth $506 million in 2015. BMPIA estimates that imports would be more than 29 million units worth $540 million in 2016.

Importers said they can now work on bulk shipments as they will get more time, which will bring down the cost further.

“Now, we will get some time to bargain with the handsets assemblers, who are mostly in China. There will also be more time for research and development, which will help increase the quality,” said Rezwanul Hoque, general secretary of BMPIA.

Currently, more than 90 percent of handsets are imported via air because of a tight schedule of 90 days, which increases the prices of handsets, he added.

If anyone misses the deadline at present, the company needs to start the process of getting a new NOC, which is time consuming and raises the cost of operations as well.

“With the new NOC, we can import handsets via sea, which will reduce our import costs and ultimately benefit the end-users,” said Hoque, also a director of Symphony, an importer.

Mobile phone imports rise 5-10 percent every year. Though import of smartphone grows 40 percent a year, basic and feature phones still dominate the market.

There are around 850 importers registered with the BTRC, and only 108 of them are engaged in importing handsets, according to the telecom regulator.