Bangladesh Plans 2G Shutdown by 2029, Putting Affordable Phones at Centre of Transition

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Bangladesh Plans 2G Shutdown by 2029, Putting Affordable Phones at Centre of Transition

61.3 million connections face a change in how calls work

Bangladesh plans to switch off its 2G mobile networks by December 2029, a transition that would require millions of people to replace their phones to keep making ordinary calls. The Bangladesh Telecommunication Regulatory Commission (BTRC) estimates that 61.3 million SIM subscribers use 2G handsets, most without the technology needed to carry voice calls over 4G.

Contents
  1. 61.3 million connections face a change in how calls work
  2. What the proposed timetable would change
  3. Which button phones would still make calls?
  4. Why WhatsApp is a different kind of replacement
  5. How many customers need to move?
  6. The replacement price is the biggest obstacle
  7. Component costs complicate cheaper phone plans
  8. Network reach and everyday usability both matter
  9. Why the current target is December 2029
  10. Key Points

The proposed timetable would stop approval of new 2G phone models after December 2026, end their manufacture after March 31, 2027, and halt their sale after June 30, 2027. Customers would then have until the planned network shutdown to move to compatible devices.

Government approval is still needed for the roadmap. The immediate challenge is the price of replacement phones: basic button phones sell for about Tk 900 to Tk 1,000, while the cheapest locally manufactured smartphone is reported to cost more than Tk 9,500.

Button phones themselves can survive the transition. Models supporting 4G voice technology, known as VoLTE, can continue making calls without a touchscreen or an internet calling app. Phones that depend entirely on 2G would lose their mobile connection when that network closes.

The central question for customers is therefore practical: whether they can buy an affordable, familiar phone that works on the replacement network. For operators and the regulator, the task is to move tens of millions of connections while keeping everyday voice calls accessible.

What the proposed timetable would change

BTRC developed the roadmap following discussions with mobile operators, handset manufacturers and other stakeholders in October 2026. A workshop considered whether a shutdown in 2028 was possible, but most participants recommended December 2029 because customers expect several years of use from their phones.

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The proposed sequence separates restrictions on new devices from the eventual end of service:

  • After December 2026: stop approving new 2G handset models.
  • After March 31, 2027: stop manufacturing 2G phones.
  • After June 30, 2027: stop selling those phones.
  • By December 2029: end 2G services for subscribers.

The gap between the proposed sales cutoff and network closure is roughly two and a half years. A person buying a 2G phone near the end of the permitted sales period could therefore have less time to use it than someone buying one earlier.

BTRC Commissioner Brigadier General Iqbal Ahmed, who is retired from military service, said the regulator wanted a clear schedule while retaining room to adjust it.

"We need to set a fixed timeline because without a timeline and proper planning, we cannot make progress. However, if necessary, the timeline can be adjusted later," he said.

BTRC also intends to seek the government's views on when imports of raw materials used to manufacture feature phones should stop. That decision matters for factories planning production before the proposed manufacturing deadline.

Which button phones would still make calls?

VoLTE stands for Voice over Long-Term Evolution. It carries an ordinary mobile voice call over a 4G network rather than the older 2G or 3G system. A customer can dial a mobile number in the usual way without opening WhatsApp or another calling app.

A compatible button phone can provide that service. Grameenphone Chief Corporate Affairs Officer Tanveer Mohammad said some 4G button phones designed for VoLTE were already available, while customers were also moving towards internet calling apps.

The handset's network capabilities determine whether it can make calls after the change. Physical buttons can remain, along with the simpler controls that many customers prefer. A phone supporting only 2G lacks the equipment needed to connect to 4G.

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For a buyer choosing a replacement, support for VoLTE is therefore central to preserving ordinary voice calls. A low price and familiar keypad will need to come with compatibility with the operator's voice service.

Why WhatsApp is a different kind of replacement

WhatsApp and similar services carry calls through an internet connection. Both people need access to the relevant app and an internet connection, whether through mobile data or another connection such as Wi-Fi.

VoLTE lets someone call a mobile number directly. The person receiving that call does not need to join the same messaging app. This difference matters for people who mainly use their phone to contact relatives, employers or other ordinary telephone numbers.

Robi Axiata Chief Corporate and Regulatory Officer Shahed Alam said calls made through internet apps could cost several times less per minute than conventional voice calls. He cited the price advantage as a reason customers were moving to services such as WhatsApp.

A cheaper call through an app still requires a suitable device and connectivity. For someone using a Tk 950 phone mainly for conversation, the initial cost of replacing the handset may be a greater concern than the price of individual calls. Keeping an affordable route to direct voice calling is therefore a separate task from encouraging smartphone use.

How many customers need to move?

BTRC's estimate of 61.3 million SIM subscribers using 2G handsets describes the core group exposed to the shutdown. Another BTRC dataset puts feature phone connections at more than 65 million out of approximately 190 million mobile subscriptions.

The broader feature phone figure is about 34% of subscriptions. BTRC also recorded feature phones as 35% of handsets in July 2026, with smartphones accounting for the remaining 65%. Feature phones include devices with different network capabilities, including some that support services beyond 2G.

Subscriptions count mobile connections, and one person can have more than one. The figures nevertheless show the scale of the transition: a large part of the market still depends on simpler devices rather than smartphones.

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Shahed Alam estimated that phones supporting only 2G typically have a lifespan of three to four years and predicted that none would remain in people's hands by 2030. That forecast places considerable weight on normal replacement cycles moving customers to newer devices before the network closes.

Customers who keep a functioning phone for longer would face a more direct deadline. Their handset could still turn on, play stored music or operate its torch, but would lose its connection to the 2G mobile network.

The replacement price is the biggest obstacle

The government's proposed smartphone prices are far below current local manufacturing prices, but still several times the cost of a basic button phone. ICT Division Secretary Mamunur Rashid Bhuiyan said at the Bangladesh TechConnect 2026 conference in Dhaka on October 27 that an initiative was under way to produce smartphones priced between Tk 4,000 and Tk 5,000.

Prime Minister's ICT and telecom adviser Rehan Asad had announced a target below Tk 4,000 in September. The target was subsequently revised to Tk 5,000 as component costs increased.

A Tk 5,000 smartphone would cost five times as much as a Tk 1,000 button phone. Even the lower Tk 4,000 target would be four times that price. At current reported prices, a locally manufactured smartphone costing more than Tk 9,500 is over ten times the Tk 950 price of the cheapest locally manufactured feature phone.

Jakaria Shahid, managing director of Edison Group, which makes Symphony phones, and president of the Mobile Phone Industry Owners Association of Bangladesh, proposed packages combining handsets with voice and data services. He also suggested instalment payments to spread the purchase cost.

Such arrangements could reduce the amount customers must pay immediately. Their usefulness would depend on the final handset price and payment terms, especially for people whose main requirement is an inexpensive way to make calls.

Component costs complicate cheaper phone plans

Bangladesh's handset manufacturers depend heavily on imported components, leaving them exposed to changes in global prices. Ziauddin Chowdhury, country general manager of Xiaomi Technologies Bangladesh, described that pressure on manufacturers.

"The biggest challenge today is the global surge in component costs," he said.

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Chowdhury said rising memory chip prices, driven partly by the expansion of artificial intelligence technologies, were putting pressure on affordable phones. Research firm Gartner estimated that combined prices of DRAM and solid-state drives could rise 130% by the end of 2026 from 2025 levels, potentially pushing smartphone prices up by 13%. DRAM provides working memory, while solid-state drives store data.

Local smartphone production was already falling. BTRC figures put output at 5.376 million units between January and August 2026, down 10% from the same period a year earlier. The grey market, meaning sales outside authorised distribution channels, was estimated to account for more than 60% of sales.

The 2026–27 national budget reduced advance income tax on imports of 22 raw materials used in phone manufacturing to 1%. Relevant duty exemptions and conditional VAT exemptions were extended until June 2030, giving manufacturers tax support beyond the proposed shutdown date.

Production is also moving towards newer technology. Four of Bangladesh's 17 leading phone manufacturers, the four largest companies, have stopped making 2G handsets and now manufacture only 4G devices.

Network reach and everyday usability both matter

Telecom expert Abu Nazam M Tanveer Hossain said Bangladesh had 99% 4G population coverage, while only 46% of people used mobile internet. Those figures put a 53 percentage point gap between the population within network reach and the share using the service.

Hossain considered 2029 a reasonable target but said readiness should guide the transition. He identified affordable devices, reliable voice coverage and incentives to change phones as the priorities.

"The priority should therefore be affordable 4G/VoLTE devices, reliable nationwide voice coverage and migration incentives. Sunsetting 2G should be the outcome of digital inclusion, not a precondition for it," he said.

Older customers and people unfamiliar with touchscreens face another practical difficulty. Their current phones may serve mainly as a way to make calls, listen to FM radio or music, and use a torch. A smartphone adds functions, but also changes the controls they know.

Affordable VoLTE button phones could preserve that familiar experience. Smartphone instalments and bundled data packages address a different group: customers ready to use a touchscreen and internet services but unable to pay the purchase price at once.

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Why the current target is December 2029

Operators are expanding 4G rather than 2G, while the shrinking market for older network equipment is making it more expensive to produce. BTRC's planning reflects that shift, alongside its effort to allow time for handset replacement.

An international shutdown timetable updated in March 2023 listed Grameenphone's 2G closure for the end of 2025 and its 3G closure for the end of 2026. BTRC's current proposal sets a nationwide 2G target of December 2029, following the October 2026 discussions with operators and manufacturers.

The work before that target is concrete: secure government approval, settle the manufacturing and sales rules, and make compatible phones affordable. The transition's success for customers will depend on whether they can continue making reliable calls with a device they can afford and comfortably use.

Key Points

  • BTRC proposes ending Bangladesh's 2G services by December 2029, subject to government approval.
  • The roadmap would stop new model approvals after December 2026, manufacturing after March 2027 and sales after June 2027.
  • About 61.3 million SIM subscribers use 2G handsets, most without VoLTE support.
  • Button phones supporting 4G VoLTE can continue making ordinary calls.
  • Government smartphone targets of Tk 4,000 to Tk 5,000 remain several times the price of basic button phones.
  • Affordable replacements, reliable voice coverage and familiar controls are central to moving customers off 2G.
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