MacDonald, Recycled Cell Phones Save Money - and the Planet (Aug 2004)
lang=EN-US style='font-size:9.0pt;mso-ansi-language:EN-US'>On the toxicity of
cell phones, also see the first-of-its-kind report issued by the Basel Action
Network earlier this year, as well as the reports issued by
href="http://www.informinc.org/">Inform,
sz
lang=EN-US style='font-size:9.0pt;mso-ansi-language:EN-US'>BAN. "Mobile
Toxic Waste: Recent Findings on the Toxicity of End-of-Life Cell Phones."
(April 2004). <
"MS Mincho";mso-ansi-language:EN-US'>
href="http://www.ban.org/Library/mobilephonetoxicityrep.pdf">
style='mso-bidi-font-weight:normal'>http://www.ban.org/Library/mobilephonetoxicityrep.pdf>
lang=EN-US style='font-size:9.0pt;mso-ansi-language:EN-US'>
lang=EN-US style='font-size:9.0pt;mso-ansi-language:EN-US'>MacDonald, Jay.
"Recycled cell phones save money (and the planet)." MSN News (Aug
2004). <
href="http://moneycentral.msn.com/content/Savinganddebt/Savemoney/P90843.asp">
style='mso-bidi-font-weight:normal'>http://moneycentral.msn.com/content/Savinganddebt/Savemoney/P90843.asp>
lang=EN-US style='font-size:9.0pt;mso-ansi-language:EN-US'>A refurbished phone
may free you from costly contracts and a variety of fees -- and keep landfills
cleaner. 100 million phones a year add up.
style='font-size:9.0pt;mso-ansi-language:EN-GB'>
lang=EN-US style='font-size:9.0pt;mso-ansi-language:EN-US'>Want to equip the
whole family with cell phones without going into debt?
style='font-size:9.0pt;mso-ansi-language:EN-GB'>
lang=EN-US style='font-size:9.0pt;mso-ansi-language:EN-US'>With a little
digging, you can find great deals on used cell phones with voice mail, caller
ID and call waiting, all without the things you don't want: monthly bills,
credit checks, lengthy contracts, age restrictions, activation fees and
complicated minutes plans.
lang=EN-US style='font-size:9.0pt;mso-ansi-language:EN-US'>Cellular providers
such as AT&T Wireless, Cingular and U.S. Cellular, as well as resellers
such as TracFone, frequently run online specials on refurbished phones as a way
to boost sales, particularly of prepaid calling plans.
lang=EN-US style='font-size:9.0pt;mso-ansi-language:EN-US'>Granted, your used
mobile phone won't have all the up-to-the-nanosecond bells and whistles of the
latest camera phones and gaming models. But for basic calling, voice mail and
even text messaging, your used unit will be indistinguishable from the top of
the line. Only you will know that you paid little or no money for it.
style='font-size:9.0pt;mso-ansi-language:EN-GB'>
lang=EN-US style='font-size:9.0pt;mso-ansi-language:EN-US'>Case in point:
TracFone offers a reconditioned Nokia 5125 cell phone and 100 prepaid anytime,
anywhere minutes for $29.99 at its online store. Since that's the normal retail
price of 100 TracFone minutes, you in effect get the Nokia handset for free.
style='font-size:9.0pt;mso-ansi-language:EN-GB'>
lang=EN-US style='font-size:9.0pt;mso-ansi-language:EN-US'>"It's a value,
especially if it's an emergency phone," says TracFone's Sherri Pfefer.
"Take families traveling in the summer: You go to a big amusement park and
everybody splits up. For $30, you can give the other group a phone and be in
constant communication with them and not have to worry. There's no monthly
bill, no contract, no worry. You can activate the phone to whatever state
you're going to, as long as the technologies match."
style='font-size:9.0pt;mso-ansi-language:EN-GB'>
lang=EN-US style='font-size:9.0pt;mso-ansi-language:EN-US'>Although your
refurbished TracFone comes with a 30-day warranty instead of the usual one-year
coverage, Pfefer says there's little risk involved.
lang=EN-US style='font-size:9.0pt;mso-ansi-language:EN-US'>"A majority of
our refurbs are returns from customers back to the retailers that then get sent
here," she says. "The majority of our phones have never been used;
they were the wrong technology, they got them as a gift, things like that."
lang=EN-US style='font-size:9.0pt;mso-ansi-language:EN-US'>If you're not averse
to signing on for a monthly plan, AT&T Wireless recently offered a
refurbished Siemens C56 for $29.99 as part of its GoPhone plan. Cingular and
U.S. Cellular also have made reconditioned cell phones available through their
retail outlets.
EN-GB'>
lang=EN-US style='font-size:9.0pt;mso-ansi-language:EN-US'>Used wireless world
lang=EN-US style='font-size:9.0pt;mso-ansi-language:EN-US'>Used cellular phones
may be little more than a curiosity here in the United States, but there is an
unquenchable market for our castoffs in developing countries where landline
phones are prohibitively expensive, according to Chuck Newman, CEO of
ReCellular of Dexter, Mich., the nation's oldest and largest cell-phone
refurbishing company.
lang=EN-US style='font-size:9.0pt;mso-ansi-language:EN-US'>"Price becomes
a very attractive feature for anybody trying, often for the first time in their
life, to have access to basic telephony," says Newman. "Certainly for
the phones we are selling, this is more often than not their only phone."
style='font-size:9.0pt;mso-ansi-language:EN-GB'>
lang=EN-US style='font-size:9.0pt;mso-ansi-language:EN-US'>ReCellular takes
discarded handsets from charitable collection drives, retailer returns and
trade-ins, refurbishes them and sells them to buyers around the world. The
discards they receive run the gamut from antique to tricked-out.
style='font-size:9.0pt;mso-ansi-language:EN-GB'>
lang=EN-US style='font-size:9.0pt;mso-ansi-language:EN-US'>"The typical
phone that we receive is maybe 18 months old. The newer ones, we tend to
remanufacture and sell here in the U.S., and the older ones go overseas to be
used for basic voice telephony," he says. "About 70% of our products
end up overseas somewhere: South America, Sri Lanka, Kazakhstan, China, India."
style='font-size:9.0pt;mso-ansi-language:EN-GB'>
lang=EN-US style='font-size:9.0pt;mso-ansi-language:EN-US'>This year,
ReCellular will recycle over 4 million handsets and return $10 million to the
charities that collect them.
mso-ansi-language:EN-GB'>
lang=EN-US style='font-size:9.0pt;mso-ansi-language:EN-US'>"For us, change
is good," Newman says. "The shorter the period of time that someone
owns a phone before they change it, the better it is for us. Unlike
conventional manufacturers, our sales are not limited by the number of units we
can sell; it's the number of units we can buy. The market is pretty much
insatiable relative to the number of phones that we can get our hands on."
style='font-size:9.0pt;mso-ansi-language:EN-GB'>
lang=EN-US style='font-size:9.0pt;mso-ansi-language:EN-US'>That's because,
until recently, most U.S. cellular phones operated on either TDMA (Time
Division Multiple Access) or CDMA (Code Division Multiple Access) technology,
while the rest of the world's cell phones were GSM (Global System for Mobile
Communications).
lang=EN-US style='font-size:9.0pt;mso-ansi-language:EN-US'>"It's actually
a bit of a frustration for us," Newman admits. "The U.S. technology
is only utilized by about 20% to 25% of the world's cellular subscribers, so
consequently we can't sell to most of the wireless users in the world; we're
confined to this narrow slice. As GSM gets better established here, we will
have more GSM phones that we can export."
style='font-size:9.0pt;mso-ansi-language:EN-GB'>
lang=EN-US style='font-size:9.0pt;mso-ansi-language:EN-US'>Save the cellular
planet
lang=EN-US style='font-size:9.0pt;mso-ansi-language:EN-US'>There's another
compelling reason to consider a used cell phone: You may help save the planet.
style='font-size:9.0pt;mso-ansi-language:EN-GB'>
lang=EN-US style='font-size:9.0pt;mso-ansi-language:EN-US'>Cell phones contain
a number of toxic components, including lead, arsenic, beryllium, cadmium and
antimony. When buried in landfills or incinerated, these substances present a
serious threat to the food chain, even in small quantities.
style='font-size:9.0pt;mso-ansi-language:EN-GB'>
lang=EN-US style='font-size:9.0pt;mso-ansi-language:EN-US'>According to Bette
Fishbein, senior fellow for Inform, a nonprofit environmental group, the sheer
number of handsets (1 billion worldwide) multiplied by their brief lifespan (18
months on average) and easy disposability makes cell phones the perfect example
of our failure to address recycling of all electronic gadgets. Inform estimates
that 100 million cell phones will be retired in 2005 alone. By contrast, only
2.5 million phones were collected by the nation's four major take-back programs
from 1999 to early 2003.
mso-ansi-language:EN-GB'>
lang=EN-US style='font-size:9.0pt;mso-ansi-language:EN-US'>"The good news
is, the cell phone industry does acknowledge that it has a responsibility. They
have set up the Wireless Foundation that runs a lot of take-back
programs," says Fishbein. "Industry has traditionally taken the stand
that waste is a municipal responsibility; why look at us? The fact that the
wireless industry has a program is significant. The negative aspect is that the
amount they take back is totally insignificant."
style='font-size:9.0pt;mso-ansi-language:EN-GB'>
lang=EN-US style='font-size:9.0pt;mso-ansi-language:EN-US'>So far, worldwide
environmental initiatives have surrounded, if not conquered, the problem. The
Basel Convention, the United Nations environmental initiative, prohibits its
signatories from exporting toxic scrap. Two new European measures, the WEEE
Directive (Directive on Waste Electrical and Electronic Equipment) and the RoHS
Directive (Restriction of the Use of Certain Hazardous Substances), set a
reuse-recycling target of 65% for all electrical and electronic products and a
target for the elimination of certain toxic substances by 2006.
lang=EN-US style='font-size:9.0pt;mso-ansi-language:EN-US'>"Any
technological changes that are going to come out of the WEEE-RoHS directives
are going to have direct impact here," Fishbein says. "If industry
switches to an alternative to lead solder, that's going to be global, so the
design changes being pressed forward by WEE/RoHS are probably going to be
applied here as well."
lang=EN-US style='font-size:9.0pt;mso-ansi-language:EN-US'>As 'churn'
increases, so do changes
mso-ansi-language:EN-GB'>
lang=EN-US style='font-size:9.0pt;mso-ansi-language:EN-US'>What is more
problematic is getting U.S. manufacturers to agree on a collection model. Some
prefer to do so on a voluntary, industry-wide scale through the Wireless
Foundation. Others prefer to run their own take-back programs. But since
current collection efforts together only manage to recover a negligible
percentage of all discarded phones, it's safe to say there is room for
improvement.
lang=EN-US style='font-size:9.0pt;mso-ansi-language:EN-US'>What's more, the new
U.S. cell phone portability rule is likely to result in more "churn"
(users jumping to different service providers), and hence more discarded cell
phones in the near future.
lang=EN-US style='font-size:9.0pt;mso-ansi-language:EN-US'>Inform continues to
lobby for extended producer responsibility that would put the onus on industry,
not only to retrieve its cell phones, but to redesign them so that toxic
components such as rechargeable batteries can be easily removed.
lang=EN-US style='font-size:9.0pt;mso-ansi-language:EN-US'>Include the chargers
in that redesign, as well.
mso-ansi-language:EN-GB'>
lang=EN-US style='font-size:9.0pt;mso-ansi-language:EN-US'>"We've been
pushing for universal adapters so you can use the same chargers for different
products," say Fishbein. "When you're talking about waste, the
chargers are a huge problem."
9.0pt;mso-ansi-language:EN-GB'>
lang=EN-US style='font-size:9.0pt;mso-ansi-language:EN-US'>Newman believes
ReCellular's eco-friendly, for-profit business model may help the industry
clean up its disposable problem.
mso-ansi-language:EN-GB'>
lang=EN-US style='font-size:9.0pt;mso-bidi-font-size:10.0pt;mso-ansi-language:
EN-US'>"I'm very, very hard pressed to think of any other enterprise that
serves so many needs. We're helping the environment with our no-landfill
policy," he says. "Last year, between 250 and 350 tons of cell phones
were kept out of landfills. So the environment is winning."
lang=EN-US style='mso-ansi-language:EN-US'>
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