The Business Case for Why and How Mobile Phones Can – and Should – Move Towards Circularity

A report published by GSMA focuses on how "to develop a compelling business case for why and how mobile phones can – and should – move towards circularity." The report explores the following research questions:

1. Current status: How linear or circular are mobile phones, and how have relevant trends evolved over the past few years? What are the most common business models for phones used by mobile operators?
2. Adapting to emerging trends: How are consumer preferences and regulations accelerating the transition towards circularity? How are manufacturers, operators and other stakeholders responding?
3. Scaling circular business models: Which circular business models are most promising for mobile operators, and how can they be scaled up? What are the roles of operators, manufacturers, refurbishers and other stakeholders in overcoming barriers?

Below are the report's key findings:

• Consumer trends, regulatory requirements and growing impacts of e-waste are converging to challenge the traditional linear business model of the mobile phone industry.
• Rapid technological developments and growing demand for mobile connectivity contribute to significant environmental and social impacts from the production, use and disposal of mobile phones.
• Circularity is a critical lever in reducing the environmental impacts of mobile phones since most of them come from materials sourcing and manufacturing.
• Consumer and regulatory trends are driving the shift toward a more circular economy, albeit with significant variation between countries and regions.
• Circular business models – such as repair services, refurbished devices and trade-ins – offer a range of commercial benefits for the industry, including cost savings, new revenue opportunities, greater customer loyalty, improved brand reputation and supply chain resilience.
• Circularity also yields significant environmental and social benefits for companies and customers, including achieving climate targets, reducing e-waste, promoting digital inclusion and supporting local economies.
• Many mobile operators are already developing circular business models, but face barriers in scaling up.
• Collaboration is crucial to accelerate the transition to a circular economy for mobile phones.
• Ultimately, circular business models need to be financially sustainable, advance environmental goals and meet customer needs. 

Regarding the need for greater circularity, the report lists three ways circularity of mobile phones can be increased:

1. Reducing the environmental impacts of manufacturing by using circular resources, such as recycled and recyclable materials and renewable energy.
2. Increasing the potential and actual lifespan of phones by repairing and refurbishing existing phones, designing phones to be more durable and repairable, and providing adequate software and security support to match the potential physical lifespan of devices.
3. Ensuring no device ends up as waste by recovering and recycling phones that have reached their actual end-of-life.

I concur with the report's assertion that "Although mobile phones contain many valuable minerals that can be recycled and reused, many phones ultimately end up in landfills or incinerated.  

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.

Report Delves Into the Transformative Power of Digital Innovation and Its Role in Driving Economic Prosperity

GSMA Intelligence published an insightful report that delves into the transformative power of digital innovation and its role in driving economic prosperity. Titled Economic growth and the digital transformation of enterprises, the report notes that "Industries worldwide are undergoing a profound digital transformation, reshaping the way businesses operate and interact. Connectivity, which is expected to account for 21% of enterprise digital transformation spending from 2024 to 2030, has become a critical enabler of this transformation. Businesses that can embrace advanced technologies that leverage connectivity, such as AI, IoT, robotics, AR/VR, big data analytics and cloud computing, can enhance operational efficiency, improve customer experiences and unlock new revenue streams."

Regarding how digitalization of enterprises is accelerating, the report says "This trend has been further accelerated by global challenges, such as the Covid-19 pandemic, climate change, economic uncertainty and geopolitical tensions. These challenges have all underscored the critical importance of digital infrastructure in ensuring business resilience and continuity."

The report's key findings are listed below:

• 5G solutions are amplifying digital transformation, but enterprise adoption is still limited. Initial 5G adoption has unlocked new use cases and accelerated digitalization for early adopters across industries. But the reach of enterprise adoption of 5G remains limited. For example, according to GSMA Intelligence’s Digital Transformation Survey 2024, only 2% of surveyed enterprises had deployed 4G/5G private networks.
• Digital transformation's economic impacts are not yet fully understood, but this report bridges the gap. While the economic impacts of mobile connectivity are well documented, the broader effects of digital transformation across sectors remain less understood. This report seeks to bridge this gap by offering empirical evidence on how the latest wave of digital technologies drives economic growth.
• Mobile technologies and digital transformation will boost global value added by nearly $11 trillion in 2030. The continued integration of digital technologies in enterprises will increase mobile’s contribution to global GDP from 5.8% in 2024, equivalent to $6.5 trillion, to 8.4% by 2030, equivalent to almost $11 trillion.
• Four sectors (manufacturing, financial services, automotive and aviation) will account for 34% of this impact. By 2030, advanced connectivity could enable manufacturers to achieve over $400 billion in annual cost savings, while the automotive sector could save nearly $45 billion in quality-related costs. Airports stand to reduce nearly $10 billion in flight-delay costs, and financial institutions could see a revenue uplift of over $140 billion through enhanced process automation.
• Realizing 5G's transformative potential requires collective stakeholder action. 5G could unleash the full potential of digital transformation, driving significant economic impact and commercial value. But the benefits cannot be realized without action from all stakeholders. Policymakers, operators and the broader ecosystem must collaborate to overcome barriers to enterprise adoption, including high implementation costs, device compatibility issues and often a lack of internal technical expertise within enterprises.

In writing the report's Foreword, Richard Cockle, Head of GSMA Foundry and Connected Industries at GSMA, explains that "The digital transformation journey is not merely about adopting new technologies; it is about reimagining business models, enhancing customer experiences and fostering a culture of continuous innovation. Enterprises that embrace this transformation, working in partnership with mobile operators, are better positioned to navigate the complexities of the modern economy, unlock new opportunities and achieve sustainable growth."

I agree with Mr. Cockle's concluding paragraph that "Together, let us embrace the opportunities that digital transformation presents and work towards a future where economic growth and technological innovation go hand in hand."

How is your business embracing the transformative power of digital innovation?

Aaron Rose is a board member, corporate advisor, and co-founder of great companies. He also serves as the editor of GT Perspectives, an online forum focused on turning perspective into opportunity.