Local production of Tk5,000 smartphones to begin next month: Rehan

Local production of affordable smartphones is set to begin in October, with the government aiming to bring smartphones with data connectivity to around five crore people who currently do not have smartphones within 18 to 24 months. 
 
Talking to BSS, Prime Minister's Adviser on Posts, Telecommunications and Information Technology Rehan Asif Asad said the initiative aims to bring the effective cost of a smartphone down to 2,000-3,000 taka for ordinary people, including agricultural workers, farmers and rickshaw pullers.
 
He said around seven crore people currently do not have smartphones, while around 50 percent of people in the country still use feature phones.
 
"Their [manufacturers] offer is that they can give up to 1,000 taka per device. They will subsidise it. So, roughly, we are there within 5,500 taka," Rehan Asif Asad said.
 
According to the adviser, discussions were held with three mobile operators and the mobile manufacturing association to develop a plan for making smartphones available within 5,000 taka. Manufacturers said raw materials and taxes would have to be exempted for the initiative.
 
He said the government has implemented the requested budgetary line items and credits, while manufacturers spent more than four weeks in China as part of preparations.
 
The adviser said an LCD screen that currently costs 17 dollars would be used in the device, while the motherboard, processor and other components would cost 23 dollars. Batteries and casing would cost another 15 dollars to 16 dollars, putting the total cost at around 55 dollars.
 
He said manufacturers had offered to subsidise up to 1,000 taka per device.
 
Rehan Asif Asad said he had also spoken to three operators about bundling the devices with free data and voice services for three months, with the aim of reducing the effective cost to 2,000-3,000 taka.
 
He said around five crore people would be targeted through the initiative, while the government plans to use the SOF fund for another two crore people living below the poverty line.
 
"The SOF fund has around 1,200 crore taka," he said, adding that the government would have to identify people living below the poverty level and determine how to reach them.
 
He said the government wants to achieve 100 percent coverage within 18 to 24 months.
 
The adviser also said Bangladesh Bank had lifted its previous restriction on mobile phone purchases under its EMI programme, allowing any bank to provide EMI facilities for mobile phones.
 
He said the devices would be developed with different specifications and prices according to users' requirements, adding that button phones are preferred by many people in rural areas.
 
He said the initiative could not be implemented by the government alone, and that was why mobile phone manufacturers, mobile operators and Bangladesh Bank were involved in their respective roles.
 
Rehan Asif Asad said the first locally produced phone could be available, while full local production by dealers was expected around the middle of October. The phone would be manufactured locally, he added.