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DarrenBeck by  DarrenBeck
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Feb 9, 2009
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90% Recycling Goal - Disconnected from Reality? 

Posted on Mar 2, 2009 | 11 Comments

Recently Sprint announced a 10-year recycling goal. By 2017, we intend to be collecting nine phones for reuse and recycling for every 10 phones that we sell   a 90% collection rate. This is ambitious goal. No wireless retailer, carrier or manufacturer is achieving a collection rate that high today. At Sprint, our collection rate was 34% in 2008. While this was up from a collection rate of 22% in 2007, it still leaves a gap of 56% for us to cover by 2017.

 

Here are a few more statistics to ponder. There are more than 270 million wireless subscribers in the U.S. today   that includes you, me and just about everyone else in the country. On average, we're going to use our cell phones for 18 months before we retire them. At that rate by mid-2010, those 270 million cell phones would be candidates for reuse and recycling. Add those to the surplus of old phones sitting in drawers and storage that have yet to be recycled or thrown away, and we're talking about a pool of several hundred million phones.

 

With this enormous surplus of phones, why is hard for some to believe that Sprint can achieve this 90% goal? Kevin Ferguson notes on InformationWeek’s Green Computing Blog that "a 90% rate seems to be disconnected from reality". Is it? Let's play this out. Even if Sprint's annual sales were 20 million phones for a given year, meeting the goal would only entail collecting 18 million phones. Given the surplus that exists, it would be feasible to meet a goal of 200%, 300% or more for years to come.

 

The real challenge, as Mr. Ferguson adeptly points out, is human nature. Since only about 10% of cell phones that are retired in the U.S. today get recycled, it's hard to argue that point. Here are three things that he sees which are working against increased collections: 1) Laziness - "There are people like me: well-intentioned layabouts who would just as soon shove the old phone in the bottom drawer as print out a label and mail it in."; 2) Giving proceeds to charity is not sufficient incentive - "Now, I am charitable. But, as we've discussed, I'm lazy. And for some reason, scrounging around my closet for donations to Big Brothers Big Sisters seems easier."; and 3) We're not forced to do it - "Few states require consumers or manufacturers to recycle their phones."

 

Let's bring this home. Until I stepped into my current position at Sprint about three years ago, why was it that I hadn't recycled my unused cell phones. I probably had three floating around the house   two that my kids were using as "play" phones. In my case, I wasn't aware that they could be recycled. Also, there was always the possibility that I might need one of them as a spare. Turns out that I was in the same boat as most Americans. Those are two of the primary reasons that most have for not recycling   along with not knowing how to save data (contacts, photos, text messages, etc.) or erase the data from cell phones, and a general feeling that recycling a cell phone falls low on the list of life's priorities. These add up. They contribute to that significant uphill climb to which Mr. Ferguson alludes.

 

What are your thoughts? Do you have unused cell phones, batteries, accessories and data cards at home or at the office? If so, what would have to happen for you to recycle them? What could Sprint do make that that experience more convenient or rewarding for you? Your opinion matters to us, and we'd love to receive your feedback.

 

Darren Beck | Sprint | Manager, Resource Stewardship

darren.d.beck@sprint.com | Twitter: @DarrenBeck

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Mar 3, 2009 5:52 AM quasijedi quasijedi 
Gold Expert
Gold Expert
  says:

I think recycling is a great thing, but you (or Mr. Ferguson) forgot one even more glaringly obvious reason why people don't bother to recycle: THEY SIMPLY DON'T CARE!

Apathy is alive and well in America. It's so pathetic. Heck, I'll be honestly, I don't even care, and I try to recycle as much as I can. The problem is that not caring isn't countered by anything. Recycle my old phone? All I get is a $20-$50 discount? No where near enough incentive. How about instead offering a REALY incentive: recycle a phone, reduce your contract by 12 months without limiting your new phone discount/rebate offer. That's real incentive.

 

As for recycling 90% of all phones sold, it's a bold move. But given SprintNextel's current state of affairs and problems, is this REALLY a move that needs to be persued at this time?!? I mean, we're losing customers left and right, and Sprint is more interested in recycling phones rather than keeping customers. That is the problem with this company, IMHO. It's like dealing with a schizophrenic or attention deficit patient - you never know which direction they're heading because they can't focus on any one direction for any significant period of time either. UGH...

 

Someone PTT me once the madness is over...assuming it ever ends.

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Mar 3, 2009 4:38 PM DarrenBeck DarrenBeck 
Sprint Employee
Sprint Employee
  says:

Quasijedi, you bring up some great points. I'm not sure the industry has done enough to give people a reason to care. While cell phone manufacturing is becoming more environmentally friendly, the fact is that many of today's existing phones contain heavy metals and chemicals that can be toxic when improperly disposed.

 

When considering the estimated 65,000 tons of cell phones that the public throws away in the U.S. each year   phones that enter landfills or waste incinerators   this poses a risk to the water we drink and the air we breathe. Responsible reuse and recycling of those phones mitigates that risk. Reuse, in particular, also conserves the energy and resources needed to manufacture more new phones, cutting down on the CO2 being released into the atmosphere.

 

Regarding your other excellent point about Sprint keeping its eye on the ball, you'll find it satisfying to know that our focus on wireless reuse and recycling leads to improved loyalty and helps the bottom line. In a 2008 survey of Sprint customers, we found that less than a third knew that Sprint had phone recycling programs in place. Once they learned about them, 60% said it made them more likely to recommend Sprint to others. This effort ties directly into customer loyalty and retention.

 

In addition, more than 90% of 3.5 million phones that Sprint collected in 2008 were reused. Most were refurbished by Sprint using OEM parts and used in Sprint's Service & Repair operations. These pre-owned phones, certified in working condition, are provided to customers as replacements for phones that are beyond repair. Through this process, Sprint is able to find a reuse for retired phones and conserve the energy and resources required to manufacture new devices. It also provides Sprint   and ultimately our customers   with a significant financial savings over buying new devices.

 

Darren Beck | Sprint | Manager, Resource Stewardship
darren.d.beck@sprint.com | Twitter: @DarrenBeck

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Mar 3, 2009 8:33 PM MDG MDG 
Sprint Employee
Sprint Employee
  says:

I think regardless of the issues the company is currently facing, it is always important to care about the environment and how our company impacts it. You can always push initiatives like this to another more convenient time. True, many people simply don't care. But probably an equal amount just don't think about it.

 

I think you could impact both those groups by possibly giving them a further incentive to recycle their old equipment. Something as simple as an "extra" $5-$10 off the purchase of a new handset in addition to their usual new handset discount, or even a decent discount coupon that could be used on accessory purchases.

 

I'm not sure if the 90% number is realistic (though an admirable goal) I always like to keep 1 or 2 old handsets around my household in case my current handset gets damaged before I am eligible for a discounted new handset. That way I can add the old handset to my account.

 

***I think if Sprint did try to incentivize its customers to recycle with additional discounts or coupons, it would have to be clearly placed as an option during online ordering and mentioned on advertising and at all points of sale. I think most customers will take an extra little bit of anything if they don't see it as costing them anything. They just need to be reminded because once they complete their purchase, they most likely won't come back to recycle after the fact.

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Mar 3, 2009 8:38 PM MDG MDG 
Sprint Employee
Sprint Employee
  says:

Darren,

 

Just read your message about the Sprint buy-back program. That is great.  I was not aware of the program and I have been with the company for a while now. I'd love to see this program get more visability.

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Mar 4, 2009 5:08 AM quasijedi quasijedi 
Gold Expert
Gold Expert
  says:

Hey guys...I didn't mean to poo-poo the recycling idea, nor the goal. However, as MDG pointed out, I think 90% is a bit unrealistic. Is it something that SprintNextel should strive for? Absolutely. Is it something that needs to be focused on today? Honestly, no, at least not a dominent one.

 

Please, don't misunderstand, I'm not against recycling at all. I'm all for it. I wholeheartedly encourage it. But I'm worried whether this is yet another instance of Sprint pursuing a pipedream. Sprint did it before with ION and Global One...and the only thing Sprint was able to show for it was a bunch of money that went down the drain. And that was back when Sprint was financially in a much stronger position.

 

So, while recycling phones is good and trying to create incentives that will encourage the user base to do so, I think that the money (IMHO) would be better spent (at least in the short term) on creating incentives to lower churn, keep post-paid customers, and boost the stock price. I seriously doubt, despite the research done on it, that this program can achieve lower churn, nor keep post-paid customers, let alone boost the stock price. In fact, in the history of recycling projects, the only entities that seem to benefit are the companies that actually recycle the products (not the middle men...which Sprint would be in this case) and the government itself.

 

Call me a skeptic, but it's hard to see the light at the end of the tunnel when we've been fooled the past 4 years by so many mirages.

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"In addition, more than 90% of 3.5 million phones that Sprint collected in 2008 were reused. Most were refurbished by Sprint using OEM parts and used in Sprint's Service & Repair operations. These pre-owned phones,certified in working condition, are provided to customers as replacements for phones that are beyond repair. Through this process, Sprint is able to find a reuse for retired phones andconserve the energy and resources required to manufacture new devices. It alsoprovides Sprint   and ultimately our customers  with a significant financial savings over buying new devices."

 

Funny you should post that  when my husband lost his phone a few months before our contract was up last year, no one at the Sprint store OR in customer service ever mentioned this. We ended up running our business (which pays our phone bill) on an antiquated model whose battery was less than fully operational and functions unacceptably outdated (ie, he couldn't check his email). This phone fell apart, and he had to takeMY old phone, which was the same model and just as dysfunctional as the other one. Again, no one mentioned this as an option.

 

We would have been glad to payfor a temporary refurbished phonethat would have enabled him to check email on the road, especiallysince we were at fault. If I had traded these older phones in for a discount that won't even get me a meal at McDonald's, he would have had nothing, and we would have had to pay full price for a replacement... or take MY phone, which was also not fully functional after two years, and then I would have had nothing until the almighty contract was up.

 

Also, no one has ever explained HOW the personal information is removed from the old phones. Not only do I not want private information of mine given to someone else, but I also do not want a phone with someone else's information left on it  especially if it's something of questionable legality. If I can retreive information from a formatted hard drive, I don't know what's stopping people from retreiving information from these phones.

 

Your customer service reps can't even remember to tell me about these refurbished phone offerings when I'm in a bind; why should I expect them to remember to erase my information from a phone when I hand it to them? Even if I tell them I erased it myself, they should still be checking. Don't get me wrong  I consider myself a satisfied Sprint customer and have evenposted positive reviews of your service elsewhere. I'm just failing to see how giving Sprint my old handsets is going to be to my advantage, and in fact I can see a lot of potential problems springing from it later.

 

I don't know if 90% is realistic, but I know my old phones probably aren't going to be part of that number unless someone can adequately address these concerns.

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Apr 3, 2009 8:52 PM DarrenBeck DarrenBeck 
Sprint Employee
Sprint Employee
  says:

Taminator, thank you for the feedback. Glad to hear that you've been a satisfied Sprint customer for some time now. We appreciate your business and your concerns.

 

First allow me to clarify the statement above: "These pre-owned phones, certified in working condition, are provided to customers as replacements for phones that are beyond repair." Refurbished phones are available, not for sale or as loaners, but as replacements for customers who have insurance on their phone or who are prepared to pay out of pocket to repair/replace a damaged phone through Sprint's Walk-in Express service. This provides a "significant financial savings over buying new devices"   a savings that's reflected today in the pricing that customers receive for Sprint products and service as it lowers our operating expenses.

 

You raise great point, though. For customers who decide not to purchase insurance on their phone   the only Sprint remedy currently available to inexpensively replace a lost phone   there's a gap. This is an excellent opportunity for improvement. It would be nice for Sprint to offer pre-owned, certified phones for sale to customers and/or as loaners until their contract comes up for renewal, since upgrading to a new phone becomes more affordable at that time. Thank you. It's a great idea. I'll be sure to share it with our Marketing and Service & Repair teams for consideration.

 

Thanks for sharing your concerns on data removal, as well. You don't want the private information on your phone being given to someone else, and neither does Sprint. We have a policy and procedures in place to remove user data from all phones collected through our wireless recycling programs. This is not performed by our representatives in the store. The data is erased by our recycling vendors.

 

Each is contractually obligated to remove all personal data from any phones that will be reused. This includes contacts and call history, as well as more sophisticated data such as email, SMS files, calendar entries, notes, photos, videos, ringers, web browser history, etc. Even "ghost data", tucked away in the proprietary file structure of the phone, is removed using processes and applications developed in conjunction with the leading handset manufacturers and key software developers. Personal data on phones that are not reused is destroyed through the recycling process as the phones are dismantled and reduced to their base materials like plastics and precious metals.

 

I appreciate your frankness. Such feedback is invaluable to Sprint as we grow and evolve as a company. I hope that we can count your old phones among the 90% collection number that we're seeking to reach.


Darren Beck | Sprint | Manager, Resource Stewardship
darren.d.beck@sprint.com | Twitter: @DarrenBeck

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Jun 16, 2009 3:02 PM rtyeisha rtyeisha 
Newbie
Newbie
  says:

One of the reason's why I have not been recycling is because of the personal information like photo's and video's that are stored on my phone. The first time I recycled my phone was about a year ago and it was because it was easy to take the card out and switch it to another phone.

 

Right now I have about four or five phones that have video's of my daughter when she was doing something cute and random photo's that I really don't want to lose. Of course there are ways that they can be downloaded onto the internet but I already spend too much money for having three phones within my plan so why should I have to pay even more to save my pics. So for now I have a drawer full of obsolete phones.

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90% is way too much and unrealistic. Sprint should get real for once and set reasonable goals.

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Jun 22, 2009 10:42 PM DarrenBeck DarrenBeck 
Sprint Employee
Sprint Employee
  says:

rtyeisha - Thanks for your feedback. You've touched on a great point. It's one of the main reasons people hold onto their used phones (along with concerns about their personal data falling into the wrong hands and the need for a back-up phone in case something happens to the phone they're now using).

 

Would you be more inclined to recycle those phones if Sprint provided a free service that would transfer your data (photos, videos, text messages, etc.) to you in a secure way before recycling the phones?

 

Darren Beck | Sprint | Manager, Resource Stewardship
darren.d.beck@sprint.com | Twitter: @DarrenBeck

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Jun 22, 2009 11:01 PM DarrenBeck DarrenBeck 
Sprint Employee
Sprint Employee
  says:

legab67156 - Thank you. Appreciate your take on Sprint's goal. We believe that it's more than achievable, though.

 

In essence, the goal states that for every 10 phones that we sell, we'll collect nine for reuse and recycling. For example, if Sprint sells 30 million phones in a year, the goal would be met if we collected 27 million phones that year. Given that only 10% of the phones in the U.S. are being recycled today, there's a massive backlog of used phones out there in drawers, closets and toy chests across the country. In a recent podcast hosted by the EPA, that backlog was estimated to be more than 900 million cell phones. (http://www.epa.gov/epawaste/partnerships/plugin/podcasts/cellpod.htm)

 

With that in mind and some innovative approaches on Sprint's behalf in months and years to come, we feel confident that we can meet and exceed that goal.

Darren Beck | Sprint | Manager, Resource Stewardship
darren.d.beck@sprint.com | Twitter: @DarrenBeck

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