Steven Moore, Head of Climate Action at the GSMA, explains why telecoms companies should hang up on linear procurement models and resell and recycle equipment to achieve net zero targets.
With the key climate milestone of 2030 fast approaching, it’s crucial companies embed sustainability and circularity initiatives into the core of their business strategies of telecommunications.
Until now, energy efficiency improvements and a switch to powering networks using renewable energy have played a key role in reducing these emissions.
The industry faces a dilemma: how can the telecoms sector stay at the forefront of new technological advancements, such as 5G and AI, while significantly reducing carbon emissions?
Especially when coupled with equipment replacement cycles that are increasingly unsustainable, both financially and environmentally.
However, confronting the growing issue of network equipment and device waste also presents a unique opportunity for telecoms companies to accelerate their sustainability plans.
By focusing on the resale, reuse, and recycling of pre-owned telecoms equipment, operators can take a manageable and effective step towards achieving their net-zero targets.
Replacing the linear with the circular
The linear replacement cycle, while straightforward, is inefficient and suboptimal for the environment: buy new equipment, use it until innovation demands something new, then replace it.
While some parts get recycled, many pieces of equipment gather dust in warehouses or, worse, end up in landfill.
According to the Global e-Waste Monitor, annual e-waste generation is expected to reach 82 million metric tonnes by 2030, a 33% increase from 2022 levels.
Adding to the urgency, the GSMA estimates that manufacturing network equipment – including materials extraction and processing – and constructing network sites and mobile masts account for more than 30 million tonnes of carbon dioxide equivalent per year.
Supply chain emissions represent the largest share of a network operator’s carbon footprint, reaching over 80% of the total in some cases.
Then there’s the issue of precious metals that need to be mined to create new equipment, and the environmental impact this can cause.
It’s clear that the linear “buy-use-discard” supply chain model is not only wasteful, but also contributes to carbon emissions and slows our progress toward achieving net zero by 2050.
That’s why earlier this year, working with the telecoms industry, we introduced the GSMA Equipment Marketplace.
The platform connects buyers and sellers of pre-owned telecom network equipment, making it easy to monetise unused equipment, find what’s needed without buying brand-new hardware, clear warehouse space and, crucially, avoid unnecessary carbon emissions.
Why selling makes sense
To achieve net zero targets, telecoms network operators need to reduce their “Scope 3” supply chain emissions.
While some of this can only be achieved by working directly with manufacturing partners, strong opportunities exist when it comes to creating circular supply chains.
Network operators can estimate their carbon emissions reduction of the assets purchased or disposed through GSMA Equipment Marketplace, rather than purchasing from new.
This evidence can then be incorporated into the business’s reporting to highlight the brand’s commitment to the environment and the tangible progress made towards carbon targets.
When unused equipment is kept in storage, its value is likely to depreciate over time. By using the GSMA Equipment Marketplace, sellers gain access to a global market of potential buyers, allowing them to extend the lifecycle of their products and avoid waste.
For example, following 5G upgrades to its network, Vodafone has used the platform to sell decommissioned network equipment to operators in other geographies where 3G and 4G mobile connectivity remains the backbone of the network.
This has delivered new revenue and savings opportunities for Vodafone, while also contributing to a reduction in the company’s carbon footprint by conserving resources and promoting reuse.
Sellers can also stand to benefit from improved Environmental, Social, and Governance (ESG) reporting, as the marketplace allows companies to quantify their circular economy efforts and provide real-time visibility of global inventory.
Buying pre-owned
From a buyer’s perspective, purchasing pre-owned network equipment offers substantial cost savings – equipment is typically available at less than 60% of the prices compared to buying new. Everything is refurbished, tested and comes with a warranty.
In addition to financial benefits, choosing pre-owned significantly reduces the environmental impact associated with manufacturing new equipment.
Engaging in this process means buyers help conserve natural resources, reduce demand for new production, and minimise carbon emissions associated with manufacturing and logistics.
Waste not, want not
This approach is tried and tested. Various industries are already doing it – for example, online platforms like Back Market and MusicMagpie have turned the resale of consumer electronics into a booming business.
They’ve not only reduced e-waste by extending the life of devices but they also check the condition and trade-in value of a device before it even leaves the seller, cutting down on unnecessary shipping and emissions that come with it.
In the telecoms sector, a number of mobile operators – such as Telefonica and Orange – are now putting programmes in place, especially in the area of device refurbishment and resale.
Telefonica, which has a goal of reaching by 2030 goal, refurbished and reused nearly 90% of their customer premises equipment in 2023 alone, avoiding the purchase of 3.7 million new units.
Orange has also been leading on circularity through its “rɘ” programme which focuses on device repair, recovery, refurbishment, and recycling, and this year launched its Circular Mobility offer for businesses in France to increase circularity and reduce carbon emissions from mobile phones.
The bottom line
Ultimately, sustainable practices and circular trading are not just environmentally responsible they are economically advantageous.
The future of telecoms isn’t just about faster networks and more data, it’s about smarter, greener business models that benefit everyone.
Those operators who choose circularity and innovation will be best placed to thrive in an increasingly competitive market.
The only question now is how soon will they start turning yesterday’s equipment into today’s valuable assets?
