Why telecoms must embrace the circular economy or be left behind

There’s a quiet revolution happening in tech - and it’s sitting in your top drawer.

Refurbished mobile phones, once seen as a second-best option, are fast becoming the smart choice for consumers, networks and the planet.

This revolution is happening across the world with the global refurbished smartphone market expected to grow from $82 billion in 2024 to $256bn by 2034. That’s a 312% rise in 10 years. [SOURCE https://www.globenewswire.com/news-release/2024/09/04/2940201/0/en/Global-Refurbished-Smartphone-Market-Size-To-Worth-USD-256-415-90-Million-By-2034-CAGR-Of-12-10.html]

I say this statistic as a word of warning – recycling technology is no longer just a buzzword, it's part of the future. Mobile phone retailers and networks need to adapt their model to include refurbished technology or be left behind.

At Genuine Solutions and Relove Technology, we’ve spent 20 years recovering, repurposing and redistributing tech. The change we’re seeing now is unprecedented. Networks are setting up dedicated circular economy arms. Consumers are actively choosing pre-loved over premium.

And what’s exciting about this is it helps not just the environment. And not just society by getting more people online. It also helps telecoms companies be more financially sustainable because there are bigger margins in selling second hand.

It’s win-win-win.

The cultural myths we need to tackle

This is the size of the opportunity: There are 200 million unused devices sitting idle in UK homes, about three per household, according to Vodafone.

Much of this comes down to two outdated fears.

Firstly, data security: Despite huge advances in certified data wiping, the public still isn’t convinced. We in the industry know this isn’t an issue anymore, but we need to say so, loudly and clearly.

Secondly, the ‘just in case’ mindset: People hang on to old tech as a backup. But today’s phones are far more robust than they used to be. How many times have you reached for an old phone because your current one is broken? But that emergency device in a drawer could change someone’s life.

Remarkable social impact

As part of our work at Genuine Solutions and our sister company Relove Technology, we partner with charities, universities, mobile phone networks and other organisations to recover, repurpose and redistribute mobile phones to some of the 1.9 million households in the UK without internet access.

Survivors of domestic abuse. Homeless people. Veterans re-entering civilian life. These are the people receiving refurbished phones - devices that would otherwise gather dust or end up in landfill.

Three’s Reconnected scheme, supported by Relove, has already delivered 16,000 donated phones - each with six months of unlimited data, calls and texts. That’s not just ‘sustainability’. That’s social impact.

Other networks have set up schemes too. Vodafone is collaborating with digital inclusion charity the Good Things Foundation to collect and redistribute second hand devices, and Virgin Media O2's charity partner is Hubbub. It’s really inspiring to see organisations collaborating to create more meaningful impact from recycling.

Modernising the model

We’ve seen how fibre has revolutionised fixed-line telecoms - improving service and energy efficiency. Now mobile needs its fibre moment. A shift to circular thinking, where reused tech is mainstream, not marginal. Where recovered phones reduce the need for constant manufacture, along with the toxic byproducts that come with it.

Yes, the big manufacturers might not thank me for saying this, but it’s time someone did.

Because the UK is ranked the second-highest e-waste producer per capita globally, according to the UN’s Global E-waste Monitor. We produced an estimated 1.6 million tonnes of e-waste produced across the UK in 2022. [SOURCE https://www.circularonline.co.uk/news/uk-generated-2nd-largest-amount-of-e-waste-as-a-country-in-2022]

If we want some inspiration, we might want to look at what’s happening in Japan. Despite being one of the most forward-thinking nations when it comes to tech, its Compound Annual Growth Rate (CAGR) for refurbished technology is set to rise nearly 18% between 2024 and 2034 (higher than the global average of 12%), according to analysis. [SOURCE https://www.futuremarketinsights.com/reports/refurbished-smartphone-market]

Because Japan is so big on technology, there’s an abundance of used mobile phones to recondition. However, what could be key here is Japan has strict rules about recycling, which helps support the refurbished phone market.

The Japanese government has provided information to consumers about the benefits of refurbished devices and has also imposed rules around offering discounts on phone contracts that come with a new device, making it less attractive to buy new.

Legislation requires manufacturers and retailers to take back used devices and ensure their proper recycling, while local authorities and authorised businesses are responsible for collecting used devices to recover the valuable metals inside.

Since 2022, networks have also been forced to unlock SIM-locked phones immediately after purchase, removing friction in the refurbished market as it is easier to use a second-hand phone across different carriers.

The UK implemented this rule in 2021, but I still believe we can do more to promote the use of second-hand electronics.

One thing to be wary of though is the trend in Japan to have a second phone for dedicated tasks such as gaming or work communication. This feels like a step backwards in the quest for sustainability.

The UK trends

In the UK, a quarter of mobile phones bought in 2023 were second hand, up from 19% in 2021. There’s an interesting difference in the reasons why depending on age groups, which could help retailers when marketing refurbished products.

About half of over 35s cite price as the main factor for choosing a refurbished handset, while under 35s also say the environment was a reason. Although they were still mainly drawn to a second hand device due to their finances, 9% of under 35s are buying refurbished due to sustainability reasons. [SOURCE https://nielseniq.com/global/en/news-center/2024/one-quarter-of-all-mobile-phones-sold-in-the-uk-in-2023-were-bought-secondhand-or-refurbished]

What’s clear is there’s been a massive shift in consumer behaviour towards refurbished technology in the UK. There's exponential growth every single year with second hand devices, with some retailers even seeing sales up 80% year on year. [SOURCE https://www.theguardian.com/business/article/2024/jun/11/it-should-be-a-right-to-fix-your-phone-the-boss-of-booming-secondhand-tech-firm-back-market]

Recycling tech isn’t just a buzzword anymore, it’s part of the future. A growing customer base is demanding it. Financially, it makes sense. Socially and environmentally, it’s non-negotiable.

What we need now is for the industry to seize this opportunity with innovation, and for regulation to support a better future.

As telecoms professionals, we’re not just engineers or strategists. We’re gatekeepers to connection. Let’s make sure we’re using that power wisely.