Bangladesh to launch affordable smartphone production in October 2026

Bangladesh will begin local production of affordable smartphones in October 2026 to bridge a massive digital divide. The initiative seeks to provide data connectivity to approximately 50 million people within 18 to 24 months, specifically targeting low-income groups such as rickshaw pullers and farmers.

To drive down costs, the government is collaborating with mobile operators and manufacturers. The estimated production cost for each device is roughly $55, comprising $23 for the motherboard and processor, $17 for the LCD screen, and $15 to $16 for the battery and casing. The government aims to reduce the effective cost for end-users to between Tk 2,000 and Tk 3,000. This price reduction will be achieved through manufacturer subsidies and bundled free voice and data services for the first three months of ownership.

Bridging the Digital Divide

Currently, millions of people in Bangladesh lack smartphone access, with a significant portion of the population relying on basic feature phones. To address this, the government is partnering with three mobile operators and the mobile manufacturing association. The project's viability relies on securing tax exemptions and removing duties on raw materials. Furthermore, Bangladesh Bank has lifted previous restrictions on mobile phone purchases under its EMI programme, now allowing any bank to provide installment facilities to consumers.

Funding and Economic Impact

For those living below the poverty line, the government is leveraging the BTRC's Social Obligation Fund (SOF). The fund contains approximately Tk 1,200 crore (12 billion), which is earmarked to support an additional 20 million of the country's poorest citizens in acquiring devices. By lowering the entry price for marginalized populations, the state intends to integrate agricultural and informal workers into the digital economy, potentially boosting overall economic productivity and expanding access to essential digital services.

The Path to Full Coverage

This initiative is part of a broader strategic push toward 100% smartphone coverage across the nation. While local production is scheduled to start in October 2026, the government's timeline for distribution is aggressive, aiming for tens of millions of users to be connected within two years. Success now depends on the finalization of tax exemption frameworks and the specific rollout schedules of partnering mobile operators to ensure target price points are met.