BTRC plans to phase out 2G networks by Dec 2029

The Bangladesh Telecommunication Regulatory Commission (BTRC) plans to shut down 2G mobile networks nationwide by December 2029 under a programme called "2G Sunset", and will gradually phase out the import, production, and marketing of 2G handsets.

The BTRC decided on it at a meeting held on 29 September, according to the meeting's agenda papers.

Speaking to TBS over the phone on 15 October, BTRC Chairman Major General (retd) Md Emdad Ul Bari said the plan was outlined in the 2024 spectrum roadmap, which envisaged phasing out 2G networks and the marketing of technology-dependent handsets within five years.

A roadmap has since been prepared based on consultations with mobile phone manufacturers, importers, traders and operators, setting deadlines for ending imports, production and marketing of 2G handsets, he said.

The proposal has been sent to the Posts and Telecommunications Ministry for approval. Implementation will begin once the ministry endorses it, Bari said.

"We have to shut down 2G networks, and we will do so. But we are developing a strategy to ensure manufacturers and other businesses do not suffer losses," he said.

The BTRC chairman said a 2G handset typically has a lifespan of two to two-and-a-half years, and the phase-out schedule would take this into account to minimise losses for businesses and consumers.

An estimated 60-70 million people still use 2G handsets, most of them from low-income households. The BTRC is therefore discussing tax reductions with the National Board of Revenue and affordable instalment-based purchases with Bangladesh Bank, including keeping interest rates low under the equated monthly instalment system, Bari added.

Under the proposed timeline, approvals for Original Design Manufacturers (ODMs) to produce 2G handsets will remain available until 31 December this year. No new approvals will be issued after that date.

ODMs design and manufacture mobile phones that are later sold under other companies' brand names.

The next deadline concerns Printed Circuit Board Assembly (PCBA) approvals, which will be discontinued after 31 March 2027. PCBA approval involves testing a handset's assembled circuit board to ensure it meets safety, quality and operational standards.

No approval will be granted to market 2G handsets manufactured after 30 June 2027, while imports of equipment and wireless devices dependent on 2G technology will be allowed until 30 April 2027.

Equipment imported within the deadline can be migrated to 4G technology by 30 June 2028. The deadline for completing the transition at the consumer level is 31 December 2029.

A senior BTRC official, speaking on condition of anonymity, said the commission was initially targeting 2029 to complete the shutdown, although the deadline could be extended until 31 December 2031.

The phase-out aims to replace outdated, slower technology and free up spectrum for faster mobile networks. The spectrum currently used for 2G could be reassigned to newer technologies, enabling operators to deliver more data and calls using the same amount of spectrum.

This could improve internet speeds, reduce operating costs for telecom companies and potentially create scope for lower data and call rates, the official said.

However, industry representatives have raised concerns about the transition timeline.

Zakaria Shahid, president of the Mobile Phone Industry Owners Association of Bangladesh, told this newspaper that phasing out 2G was the right move, but the proposed schedule required further review.

"Moving more than 60 million subscribers to a new system within such a short period will not be easy," he said.

Shahid said Bangladesh should follow the approaches adopted by other countries, adding that government initiatives alone would not be sufficient and mobile operators must also play an active role.

He also cautioned that restricting the supply of 2G handsets would not automatically make smartphones affordable for all consumers.

"Customers in Bangladesh can buy a mobile handset for less than Tk1,000. Such affordability cannot be ensured through the smartphone system," he said.