Electronic waste, or e-waste, is a growing problem globally as technology continues to develop at speed. Adopting a circular economy model makes both device procurement and device retirement less wasteful as the circular model is a sustainable alternative.
The goal of the circularity model is to use fewer natural resources and minimize waste by repairing, reusing, and recycling materials.
For example, McKinsey research has shown that a circular economy in Europe can create a net benefit of EUR 1.8 trillion by 2030, while addressing mounting resource-related challenges, creating jobs, spurring innovation, and generating substantial environmental benefits.
Consumer Psychology to the Rescue
Studies show that while eight in 10 consumers have heard of e-waste, nearly a third do not understand it, and 18% have never heard of the term. A logical way to reduce e-waste as a consumer is by making smarter purchasing decisions. Opting for electronics that are durable, repairable, and built to last contributes significantly to sustainability and energy efficiency, whereas impulse buying often leads to unnecessary upgrades, contributing to the pile of discarded devices.
Many manufacturers now offer repair kits and replacement parts to extend the life of devices. Opting to repair electronics instead of replacing them saves consumers money, conserves valuable resources, and significantly reduces e-waste. Moreover, take-back programs offered by manufacturers simplify e-waste disposal, ensuring it is managed ethically and efficiently.
In modern society, materials and products that no longer perform their original function are deemed unusable; this practice is misplaced.
If we are to reach global climate goals, while continuing to increase global wealth, we must ensure that the concept of waste is not an integral part of modern society.
"The manufacturers have got responsibilities in terms of standardizing and making sure that they don't short-change the consumer, so the product that they produce should not have a short life cycle," said Cosmas Luckyson Zavazava, Director of the Telecommunication Development Bureau at the International Telecommunication Union (ITU).
Balancing Profitability and Sustainability
So, how can the tech industry sustain its profitability without manufacturing new devices?
Firstly, it’s important to look at the market impact and trajectory. The refurbished and used mobile phone market size was valued at USD 53.81 Billion in 2022 and is expected to grow at a compound annual growth rate (CAGR) Of 10.8% during the forecast period, reaching USD 120.96 billion by 2030.
The increasing number of equated monthly installment (EMI) options provided to consumers worldwide is the key factor expected to propel the growth of the refurbished and used mobile phones market.
In addition, increasing cost-efficiency benefits related to refurbished and used mobile phones are likely to fuel the growth of the target market.
Increasing e-commerce platforms’ adoption for refurbished and used mobile phones between sellers and buyers is projected to create growth opportunities within the market over the forecast period.
Refurbished Device Market Constraints
A shortage of the top mobile phone models in the market may hamper the growth of the refurbished and used mobile phone market. In addition, the limitation of the used smartphone warranty period is anticipated to restrict the growth of the market.
How Artificial Intelligence (AI) Can Be Leveraged
Given its massive computing capacity, AI can enable circular economy innovation across industries, including telecommunications, in three main ways:
- Design Processes: AI can enhance and accelerate the development of new products, components, and materials fit for a circular economy through iterative machine-learning (ML) backed processes, achieving faster prototyping and testing.
- Product Circulation: By combining real-time and historical data from products and users, AI can help increase product circulation and asset utilization through pricing and demand prediction and predictive maintenance.
- Reverse Logistics: AI can help build and improve the reverse logistics infrastructure required to ‘close the loop’ on products and materials by improving the processes to categorize and disassemble products, remanufacture components, and recycle materials.
Some Sustainability Efforts in Telecom
Apart from collaborating with international bodies such as the World Wide Fund (WWF) for various sustainable initiatives, Vodafone is offering high-quality refurbished phone handsets with a 24-month warranty, offsetting around 50 kg of carbon emissions compared to a new handset. During the manufacturing process, these handsets also require the extraction of 76.9 kg less raw materials. In addition, Vodafone SIM cards are supplied in half-sized card holders, made using recycled plastic. Vodafone is increasingly offering eSIMs by default when customers order their phones online.
UAE operator du’s wide-ranging sustainability strategy encompasses significant energy efficiency initiatives. These initiatives include deploying solar panels on towers, implementing free-cooling systems, engaging in sustainable procurement practices, and actively addressing waste management. In addition, du’s lead acid battery recycling initiative is a key contributor to its sustainability objectives, which focus on pollution reduction, resource conservation, and the minimization of hazardous waste.
Nokia is also championing the concept of a circular economy within the telecom sector by reducing waste while also conserving resources and energy that would otherwise be used in manufacturing new equipment. Nokia's approach involves taking back or acquiring excess and obsolete products from customers and markets, then refurbishing, repairing, or remanufacturing these units to include them in the product supply chain.
Huawei is exploring optimal ways to build a low-carbon, circular economy and develop innovative solutions to make its value chain greener. Huawei complies with environmental laws and regulations, while integrating energy and resource efficiency and environmental benefits into its research and development (R&D), operations, procurement, manufacturing, and supply chain. The life span of nearly one million devices has been extended through its trade-in program.
Similarly, Cisco is designing its products to align with its 25 Circular Design Principles, organized across five focal areas. The five principles focus on using recycled materials, standardizing components for reuse and recycling, optimizing packaging with sustainable materials, enhancing energy efficiency, and designing products for easy disassembly, repair, and reuse.
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Supporting Mechanisms in Place
In addition to consumer trends, government regulations and policies are emerging as an important driver of circularity, with regulations governing eco-design and right-to-repair initiatives emerging in Europe and North America. Other governments are actively considering regulations that could directly or indirectly support circularity.
Better data, statistics, policies, and legislation are needed to support countries and the electronic sector transition to a circular economy. The ITU is actively leading initiatives to promote circularity. Key initiatives include the E-waste Monitoring program, where the ITU collaborates with the Global E-waste Statistics Partnership (GESP) to track and publish data on e-waste generation, collection, and recycling. The ITU also contributes to the Solving the E-waste Problem (StEP) initiative and has partnered with the Circular Electronics Partnership (CEP) to advance a circular electronics industry.
In the area of recycling, the UAE has promoted waste reduction by pioneering efforts in e-waste recycling. The UAE Circular Economy Policy 2021–2031 serves as a comprehensive framework to ensure sustainable resource management and effective utilization of natural resources.
Extending the life of raw materials through improved durability, repairability, and recyclability warrants increased modular construction and efficient interchangeability of individual components. Key starting points include software development strategies to avoid software-related obsolescence or the delayed release of hardware licences, as well as providing open-source software codes for alternative repair providers.
Barriers to Circularity
The GSMA's ‘Rethinking Mobile Phones: The Business Case for Circularity’ report, published in February 2025, surveyed over 10,000 consumers across 26 countries and 31 mobile operators. It highlighted that while 90% of operators engage in at least one circular business model, such as refurbishment and e-waste management, 80% recognize significant untapped potential in scaling these initiatives. The report also identified financial barriers, including high upfront investment costs and pressure to prioritize short-term revenues, as challenges to expanding circular practices.
Furthermore, inconsistent regulations and policies globally, along with limited incentives for circular practices, are making it difficult for companies to transition.
According to the GSMA, the market for refurbished devices and repair services, projected to exceed USD 150 billion globally by 2027, offers new revenue streams for manufacturers and operators. Producing and supporting durable and repairable devices fosters customer satisfaction and loyalty, strengthens brand image, and resonates with environmentally conscious consumers and investors. Supply chain vulnerabilities and price volatility can be mitigated by opting for renewable energy sources, improving material efficiency, and reducing reliance on critical minerals.
In recent years, the circular economy has garnered attention alongside climate protection and the preservation of biodiversity; hence, it must be considered a top priority among all aspects of sustainable policy development in the mobile industry.
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