The Cell Phones of Yesterday in Tomorrow's Waste Stream

By Mihoyo Fuji and Vered Doctori-Blass

According to the US EPA, an estimated 130 million end-of-life (EOL) phones were retired in the US during 2005. Less than 5% of these phones were actually collected and recycled for precious metal recovery, or re-sold as used phones within or out of the US market. While EOL cell phones carry different opportunities with them, there are data security, economic, and environmental concerns that need to be addressed.

Cell phones have evolved rapidly over the past 20 years. Thanks to rapid technologic advancement, today's products are much smaller and lighter than the phones of the early `80's. With an average weight of 100 grams, today's cell phones are used for many functions such as internet browsing, games, photos and text messaging, compared to early models which could only be used for voice communication. Due to fast changing technology, fashion trends, and a mass consumption culture, it is now estimated that, on average, a new cell phone is used for a period of only 18 months by its first user. This doesn't mean that phones will necessarily reach the waste stream in 18 months, as many phones are stored for a number of years before being discarded.

Recently cell phones have drawn greater attention among policy makers because of concerns over the rapidly growing volume of electronic waste. While there are concerns related to the hazardous materials contained in these products such as lead, chromium and arsenic, cell phones also have value in terms of material recovery and resale. To address the immediate hazardous and toxicity concerns, the European Union and some US states to follow, adopted the Restriction of Hazardous Substances (RoHS) directive, banning the use of certain substances from future electronic products. But it is not all about toxicity. Cell phones contain precious metals, and the production process to make them is very energy intensive. By extending the lifespan of a phone and recovering material from discarded phones, economic and environmental values can be retained.

In recent years many volunteer programs have been established in the U.S. market. Both private and business users can now choose how to return their phones from a variety of options. Some programs offer incentive to the end-users in the form of “buying back” the EOL phones while others just take back the phones and cover the cost of shipping. Non-government organizations (NGOs) and charity organizations have launched fundraising campaigns that provide them with positive cash flow by collecting old phones from the public and selling them to recyclers and refurbishers for their market value.

Once the discarded phones are collected, there are two main processing options: reuse the phones or recycle them for metals recovery. In the reuse market, there are three opportunities: reuse of the phone “as is”, reuse of the phone after refurbishing, or reuse of components such as the LCD. For recycling, the materials that have the most value are gold, silver, palladium and copper. The average economic value of a recycled cell phone is less than one dollar, depending on precious metals market values. In contrast, the average economic value of a second-hand phone is approximately $15. From an environmental point of view, both options are better than disposal in a landfill, however, the recycling and smelting processes are energy intensive compared to the reuse option which requires minimum energy consumption as part of the testing and reconditioning process.

The main environmental benefits in the reuse option come from upstream displacement, avoiding production of new units in case the second-hand market cannibalizes the market share of new phones (this can be debated!). So, by extending the lifespan of a cell phone to second and third time users and having the infrastructure to recycle it once the phone has no value, we can maximize the economic performance and minimize the environmental burden associated with cell phones.

One question that remains open is how cell phone data security will affect the EOL process, if at all. When phones are recycled, they are physically shredded and smelted, ensuring that the data is destroyed. When phones are sold in the secondary market, there is a critical issue of what was done with the data of the previous owners. For some users their address book might not be a concern, but it can definitely become an issue if emails and other information are stored. Currently, some refurbishers take steps to delete all of the data stored in used phones, but most of them place the responsibility on the previous owners to delete any information before he/she returns the phone.

As cell phones become increasingly multi-functional, it is inevitable that these phones will handle a great deal of important personal information such as a names, addresses and phone numbers, as well as credit card information. In the case of Japan, where many cell phone subscribers have already upgraded to 3G technology (enabling them to make bill payments, download internet content, and exchange emails & files) the concern toward information security is growing.

According to one Japanese cell phone provider, the number of collected phones has been continuously dropping since 2001, and only 42.6% of EOL phones (relative to the 2001 level) were collected in 2004. This is a sharp decline considering the fact that most Japanese providers offer permanent take-back programs. This decline has had a significant impact on the EOL market because the drop in the number of collected phones means a decreased supply of phones in the market.

To tackle the issue of information security, more attention is being given to separating the hardware from stored data. Several solutions are available. For 3G handsets, some Japanese carriers provide a detachable chip that looks like a SIM card which contains the information related to the user's service subscription. When this card is removed, the handset is considered to be “not covered by subscription”. Also, other information can be saved and transferred to a mini SD card; therefore the consumers do not have to rely on the handset for data storage. Another solution is to store the data on the servers of a third party service provider.

As mobile devices handle more personal information, it is expected that the product design or network design will take the information security issue into account. It will become much more critical when the cell phone market in the US completely shifts to 3G technology. Addressing the information security issue will be important for the EOL market in the coming years.

From the series of interviews we conducted in our research, manufacturers, recyclers, and refurbishers do not face a problem related to data security yet but they are all aware that this will become a serious barrier for collection in the near future unless they provide data clearance services as part of the process.

The authors are graduating master's students from the Donald Bren School of Environmental Science & Management at University of California, Santa Barbara, specializing in corporate environmental management. They were part of a research group project working on end-of-life management of cell phones in the US and can be reached by e-mail at: This e-mail address is being protected from spambots. You need JavaScript enabled to view it or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .