Waste Phone What Value?

1. Waste Phone What Value? Mick Johnson Waste Compliance and Recycling Manager Carphone Warehouse/Best Buy Group

2. CarphoneWarehouse • CPW is 22 years old this year and from a 6K start, a man with big ideas, in 2009/10 the business turnover was 3.6bn (£3,528m) – Nearly 5m handset sales last year • The largest Mobile Retailer in Europe across 9 countries. • Now bringing Mobile expertise to the USA and partnering with Best Buy to bring a new shopping experience to the UK and Europe Market. • Innovators in all areas of the Mobile Phone World, Broadband and lately the Wireless World. • Bringing “Simple Impartial Advise” to the mobile phone end user. • Charles Dunstone create a difference in the way Mobile Phones were delivered in this country and also create a Business which is now respected as one of the leading companies in the UK. • This “80’s yuppie” business tool has been brought to the masses by taking the mystery away to allow everybody the benefits, features and fun of mobile technology.

3. A quick History Lesson • When Martin Cooper made the first mobile call on a New York street, I wonder whether he had any idea of the phenomena that was being created ? (April 3rd 1973) • Since the first UK Vodaphone call in 1985(Jan 1st St. Katherine's Dock to Newbury)there are various numbers quoted on the levels of phone usage and ownership, but over 80%+ of the UK population is a safe bet. • In 2000 half the world’s population hadn’t made a phone call • From the same report the Guardian quoted in 2000 that “The mobile will become the most popular product the industrialised world has known - and continuous technological change could induce users to buy new models every few years.” • At this year’s Mobile World Conference, UK based consultancy CCS estimated 1.5bn mobile phones sales this year.

4. CPW • I’m very pleased to say we have played a small part in the work done by the University and especially with Paul, one of our speakers today. • Paul even spent a couple of days with us at Wednesbury doing some practical research. • The company has also actively supported government and police initiatives in the past and I run the police account to supply phones into the NMPCU for national operations. • At Wednesbury we regularly provide training for the High-Tech units of the different forces and on occasions have given workshop practical help to officers trying to collect data. • We even sent some phones to Hereford to be blown-up by the army after the Madrid bombings a few years ago. Trying to piece phones back together to retrieve critical data.

5. So Finally…The Subject Matter • This phenomena has definitely created a Waste issue. • Mobiles are not the most environmentally friendly of products? • A recent NMPCU presentation suggested in excess of 10m handsets are recycled each year and 90m sit unused in UK homes. • The lists of materials contained in handsets and the material and chemicals in repair operations, re-work and harvesting mean that there needs to be very robust processes in place. • 40/50K repairs a month create a vast amount of waste material. • The WEEE directive had companies worrying about complying with Waste Legislation…………late but very effective!!!! • With Environmentally issues high on the news agenda, Waste becomes a key problem for all business; Regulation, Corporate Responsibility, Reputation, Data Protection and beyond. • My own experience is that the more you strive to comply and “do the correct things” the more you save in costs and generate potential revenue streams??

6. So where does it come from? Well in terms of Carphone…………………… • Repair workshop (beyond economic repair (BER) ) – carrying out repairs to customer’s faulty equipment. This is waste because a qualified engineer has deemed the equipment to be not-repairable within the company’s or OEM’s parameters. • This also creates component parts, LCD’s, batteries, plastics. • Insurance – faulty equipment that has been replaced under an insurance policy. We are telling the customer to “Discard”, so Waste. • Trade-in – devices received from the trade-in process that allows customers to obtain a value for older/working against new purchases. • Take back (WEEE Regulations) – devices taken back through the ‘like-for-like’ recycling scheme required under the WEEE Regulations. These are not initially waste as the intention is for the device to continue its life as originally intended. • Like Trade-in, Take Back becomes Waste if not working. • Redundant electrical equipment, IT hardware.

7. Value • Although many devices are waste (i.e. their previous owner intended to discard them as they were not wanted any more, or they are clearly damaged and not repairable), almost all of this type of electrical equipment has some value... • Working equipment can be data-cleared and refurbished for sale • Non-working equipment can be repaired, data-cleared and refurbished for sale • Non-working equipment that cannot be repaired can be stripped down for parts for re-use or raw materials for recycling, or can be processed to recover materials such as precious metals, and the heat from the process can be utilised. • From 1 Ton of recycled phones you can generate 230gms of gold • A large repair workshop may be under cost restraints that dictate when a device becomes BER, but a smaller recycler may have a lower cost base so is able to spend more time and carry out the repair

8. The Risks • Previous user’s personal data still on the device. • This a major headache for companies such as ours. In a recent survey 73% of people 20 to 30 thought the recycler should clear the data. • In the same survey 35% of people didn’t know how to clear. • Phones bought for data harvesting, usually from organisations who are unaware of their final destination or use. • Personal data finds its way into the public domain. • Waste is handled and processed by non-licensed organisations, which is a breach of the Duty of Care Regulations. • Environmental contamination which is traceable, not managing audit trails. • Non-compliance with other Regulations. • Data Management is now as important as making sure that you have the correct and robust waste solutions in place. • Negative impact on Company brand - as a well known ‘High Street’ presence we are under constant observation from many viewpoints and will not take the risk that waste processing carried out on our behalf is not fully compliant.

9. Controls • Waste Service providers must be capable of providing fully compliant services. • Waste is always handled by fully licensed organisations... • Waste carrier permit • Waste management license (authorised treatment facility) ATF or formal exemption • Approved authorised treatment facility AATF (under WEEE Regulations) • Approval to move waste from one country to another (TFS Regulations) • Recyclers handling mobile phones must be signatories to the Home Office "Code of Practice For The Handling And Processing Of Mobile Phones And Other Mobile Devices“. • This is an excellent move and I hope it is regularly policed and audited.

10. Controls • All Waste Service providers must have robust data clearance and security procedures in place, and be able to demonstrate these systems during audit. • Data protection agreements (DPA) in place with recyclers & any company handling previously-owned equipment. • DPA requires data deletion and equipment resetting of all working equipment. • DPA requires destruction of non-working equipment such that data can never be retrieved (dismantling, mechanical shredding of data storage devices). • In some cases data storage devices are removed from working equipment and mechanically shredded. • Service providers must be aware of the destination of devices, to prevent potential illegal use of devices or data.

11. Finally • There are lots of sharp stats and figures that I could now roll out. • Take away some people’s mobile phone and you may as well cut off a limb!!!! • 40% of personal robberies involve mobile theft. • Crime, Terrorism, public disorder, drugs, fraud, bullying, harassment have the perfect tool to communicate and organise their dishonesty. • People record their entire lives on their Mobile Phone. • We shop, we bank, we browse. • 1 million plus mobiles a year are no longer in the hands of their rightful owner. • I will try to keep Carphone pushing the barriers of Waste and Data control and am glad that the work done by this university and other professionals around the country will push the barriers of keeping one step ahead of the people abusing this magical mobile technology.