Business Case: Cellular Phone Collection Programs
Transcript of Business Case: Cellular Phone Collection Programs
: Bus ines s Cas e Cellular Phone Collec tion Programs
AHCIET MOVIL, San Jose Costa RicaOctober 19th – 21st, 2006
Agenda : Latin America The Region At a Glance
Technology Migration Market Penetration Potential Legislation
Bus ines s Cas es for Us ed Hands ets Charitable Collection Programs Technology Transition Programs Consumer Trade-In Programs
About ReCellular
Summary &Conclus ions
Agenda : Latin America The Region At a Glance
Technology Migration Market Penetration Potential Legislation
Bus ines s Cas es for Us ed Hands ets Charitable Collection Programs Technology Transition Programs Consumer Trade-In Programs
About ReCellular
Summary &Conclus ions
Technology Transition
2004 2005 2006 2007
70,104
57,350
42,569
27,054
Projected TDMA subscriber base (‘000)*
*Source: Pyramid Research Dec. 2005
CDMA technology grew by 38% in 2005
GSM technology grew by more that 100% in 2005
Market Penetration
Top 5 Markets in Latin America*
3. Colombia 90%4. Venezuela 89%5. Chile 87%6. Bolivia 82%7. Argentina 63%
The Latin American region: 70%
*Source: Business News Americas based on study by Latin Panel.
Recycling Legislation
:Colombia August 2006: Government and mobile phone companies
signed an agreement to collect used phones.
:Mexico Treatment plan for electronic waste scheduled to be
developed by the government in 2007.
:Brazil CONAMA, the national council on environment, requires
manufacturers to collect and provide appropriate disposal of batteries.
:Chile Government has been quoted that electronics recycling
regulation is on their agenda.
Agenda : Latin America The Region At a Glance
Technology Migration Market Penetration Potential Legislation
Bus ines s Cas es for Us ed Hands ets Charitable Collection Programs Technology Transition Programs Consumer Trade-In Programs
About ReCellular
Summary &Conclus ions
Drivers for Handset Collections
Environmental
Charitable
Financial
Highest rate of participation
Charitable Programs
Provides a socially responsible program for the local community while helping
the environment.
Easy to implement Funds generated help local communities,
creating goodwill Low cost Helps avoid regulation Protects the environment and provides safe
recycling practices for the phones & batteries
Case Study: RECICL@ CEL
AVEC &ReCellular : Offic ial Spons ors Cantv
Movilnet &MRW
Collecting in over 1,200 locations throughout Venezuela
All proceeds help Red Hogar, a housing network for those in need
All units are either resold in a working condition or properly recycled www.avec.org.ve/reciclacel
www.movilnet.com.ve
www.WirelessRecycling.com
Technology Transition
Targets the sale of specific new phone models while migrating customers.
Gives financial incentive for consumer to switch networks via a discount
Supports a corporate objective Exporting the used phones guarantees the
phone does not go back on the network or to a local competitor
Protects the environment and provides safe recycling practices for the phones & batteries
Case Study: Motorola
Motorola and ReCellular partnered to migrate customers from TDMA to GSM in
Latin America.
Initial program in Central America recovered more than 34,000 units within the first 5 months of the program
Consumers received a discount on a new Motorola GSM phone by exchanging their TDMA unit
All units would be exported, debranded and not resold within their market
Additional markets slated for launch in early 2007
Trade-In Program
Provides financial incentive to the consumer, while lowering acquisition costs.
Targets those phones with higher value Gives consumers a discount on a new device Attracts consumers from other networks Protects the environment and provides safe
recycling practices for the phones & batteries
Case Study: Best Buy (USA)
Utilize dedicated website Gift card value varies based on value of used
handset Thousands of consumers visit the site daily to
exchange their old handset Can also access site in-store
www.ReCellularTradeIn.com
Agenda : Latin America The Region At a Glance
Technology Migration Market Penetration Potential Legislation
Bus ines s Cas es for Us ed Hands ets Charitable Collection Programs Technology Transition Programs Consumer Trade-In Programs
About ReCellular
Summary &Conclus ions
Who Is ReCellular?
• Largest trading company of used handsets
• Annual revenues in excess of $50 Million
• Processes over 3,000,000 wireless units annually
• Buys/sells over 200,000 wireless handsets monthly
around the world
• National Recycling Coalition Development Award 2004
• Basel Action Network (BAN) recommended recycler
• International offices in Hong Kong and Sao Paulo, Brazil
ReCellular HeadquartersDexter, MI
ReCellular Affiliations
Strategic Partners
Agenda : Latin America The Region At a Glance
Technology Migration Market Penetration Potential Legislation
Bus ines s Cas es for Us ed Hands ets Charitable Collection Programs Technology Transition Programs Consumer Trade-In Programs
About ReCellular
Summary &Conclus ions
Summary & Conclusions
Millions of handsets will be replaced in the region this year alone
Regulations for electronics recycling have begun in the region
Used handset recycling does not have to be a burden nor a cost
Early implementation of handset collection programs can create strategic advantages
Gracias!
Mike NewmanVice President
, . ReCellular Inc2555 Bishop Circle West
Dexter, MI 48130 (734) 205-2134 Phone (734) 205-2312 Fax
mnewman@ recellular.com www.recellular.com
www.wirelessrecycling.com