Customers now can avail handsets in instalments when purchasing connections as the telecom regulator has finally decided to give the greenlight to mobile network operators in this regard. 

The phone will have to have at least two or more SIM slots. One of these slots will be dedicated for the SIM of the operator selling the phone and it would be locked to that specific operator.

In the other slots, customers have the freedom to use SIM cards from any operator of their choice, without any restriction, according to a document of Bangladesh Telecommunication Regulatory Commission (BTRC).

Customers will have to pay a down payment of 20 per cent to 40 per cent of the price and the period for instalments can run anywhere from a minimum of 3 months to a maximum of 12 months.

"After the payment of the instalment, the locked one will get unlocked," Shyam Sunder Sikder, chairman of Bangladesh Telecommunication Regulatory Commission, told The Daily Star.

The operators will be able to sign deals with mobile manufacturers to provide such handsets to customers, he added.

The customers cannot switch operators without paying the price of the smartphone.

A SIM (subscriber identification module) lock or network lock is a technical restriction built into mobile phones by manufacturers to restrict the use of the devices in specific countries or networks.

Operators in Bangladesh have long wanted to sell 4G-enabled handsets in cooperation with manufacturers on instalments.

A few years back, the Association of Mobile Telecom Operators of Bangladesh and handset manufacturers jointly placed a proposal to the telecom regulator to introduce it.

"There are many individuals who lack the ability to purchase a phone by paying the full price in a single payment. So, it will be a very positive thing for them as they have paid no interest despite paying the price in instalments," said Telecom Minister Mustafa Jabbar.

"We want to increase the penetration and this instalment facility will boost the country's overall mobile phone penetration rate," he said.

Besides, handset manufacturers will be able to sell their phones and operators can boost their customers base, he added.

Grameenphone has been advocating to enhance the accessibility of smartphones to the masses for quite some time, said Hossain Sadat, spokesperson at Grameenphone.

"This will not only increase smartphone penetration but also increase internet usage," he said.

"While we wait to receive the BTRC directive, we welcome the regulatory initiative as this will bridge the digital divide in our country and will accelerate our journey towards 'Smart Bangladesh'," he said.

Robi appreciates this initiative to introduce device locking in Bangladesh which is long pending, said Shahed Alam, Robi's chief corporate and regulatory officer.

"It will directly support the increase in smartphone users which is just over 50 per cent now," he said.

"It will also enable device manufacturers and MNOs to offer smartphones to marginalised populations through convenient ways to fast-track the smartphone adoption by mass people," he said.

Operators now sell phones mostly in collaboration with banks and customers must pay phones in equal monthly instalments, according to industry people.

But it was limited to very few customers, who were selected through rigorous document verification. Customers have to pay a big down payment in such cases.

"But this is different. Since the SIM will be locked into the device till all the payments are made, we will have the confidence to offer it to more customers in greater flexibility," said Alam.

"Even, we can now provide it to the customers living in the remote areas," he added.

However, Banglalink, the third largest operator, expressed apprehensions, saying that the significant amount of cash available to the operators could attract a larger customer base.

"We have always requested the regulator that before taking any regulatory action, they should take the competitive environment into account," said Taimur Rahman, chief corporate & regulatory affairs officers.

"Instead of network or carrier locking, which would allow operators with greater financial strength to subsidise handsets and entice subscribers, our opinion is that marginal subscribers should be given microcredit facilities through partnerships with banks to enable more handset proliferation in the nation," he said.

"This would also avoid the risk of further polarising the competition situation. Hopefully, the authorities will take these concerns into account," he said.

AKM Habibur Rahman, managing director at Teletalk, said they have not been informed about the BTRC move yet.

Abu Saeed Khan, a senior policy fellow at Colombo-based think-tank LIRNEasia, said it was certainly a positive move.

"It will increase the penetration of smartphone, especially those who cannot buy a smartphone upfront," he said.

Mohiuddin Ahmed, president of Bangladesh Mobile Phone Consumers' Association, said it would be beneficial for the masses who wish to use mobile phones.

"But, price of the handset in this mechanism should be lower and payment condition should be longer and flexible," he said.

According to the document, the handset that operators can offer will have to be manufactured locally.

Rizwanul Haque, vice president of the Mobile Phone Industry Owners' Association of Bangladesh, welcomed the move.

"There is a huge demand for the handset with instalment facilities. When we offer such products for credit card users, we get tremendous response," he said.

"But, the number of credit card users is very limited. So, we offer handsets in collaborations for connections…it will significantly extend the opportunity for many people," he added.