By Barry Poke, CEO of urBusiness

In 2024, IT devices are an indispensable part of business operations. However, the rapid turnover of phones, laptops, and network equipment is creating a mounting environmental problem—particularly in the form of e-waste. As the UK ranks among the top global contributors to e-waste, the challenge of managing these resources sustainably is critical.

The Labour Party’s 2024 Manifesto commits to moving the UK towards a circular economy, while France has already taken bold steps, mandating the use of refurbished IT devices across various industries.

With a growing focus on the circular economy, telecom businesses need to be prepared for change. The key question is: How will these developments affect the UK telecom sector, particularly its enterprise customers and vendors?

Pressures on Enterprise Customers: Shifting Expectations for Vendors

As enterprise customers face growing pressure to meet Environmental, Social, and Governance (ESG) targets, these expectations inevitably extend to their IT and telecom infrastructure.

Companies are scrutinising every component of their operations for sustainability, including the devices they use—whether phones, laptops, or even IoT-enabled robotics.

This shift means that telecom vendors must evolve. Devices provided as part of telecom services will need to support enterprise customers’ sustainability goals, changing the landscape of service delivery. This could affect everything from how vendors offer device loans to how they manage equipment in service contracts.

For example:

• Device Lifecycle Management: Vendors will need to offer sustainable management services, including the provision of refurbished or repairable devices.
• Sustainable Device Loans: Offering loan devices that are refurbished or easily recyclable will align more closely with customer expectations for better sustainability practises.
• End-of-Life Solutions: Telecom companies may need to develop processes that allow for repair, refurbishment, or recycling at the end of a device’s lifecycle, rather than just disposing of tech.

Vendors who fail to adapt to these changing demands could see their relationships with enterprise customers strained, as ESG targets are likely to become increasingly non-negotiable as pressure mounts – both from customers and the government.

Building Devices for Repairability and Circularity

The increasing emphasis on the circular economy doesn’t just affect service providers; it also places new demands on device manufacturers. In France’s model, refurbished devices are expected to be integral to the future, but for that to succeed, the devices themselves need to become more repairable and recyclable.

Currently, many IT and telecom devices are designed with limited consideration for what happens at the end of their lifecycle. Built-in obsolescence, non-removable batteries, and proprietary parts all create further hurdles to a true circular economy. To meet the rising demand for refurbished and sustainable devices, manufacturers will need to focus on the following:

• Modular Design: Developing devices that allow for easier component replacement and upgrades could significantly extend the product lifecycle. This would support a circular economy by enabling devices to be repaired or refurbished, rather than replaced entirely.
• Standardisation of Parts: Using standardised components across different models would make repairs and refurbishments far more cost-effective and reduce a large proportion of e-waste.
• Sustainable Materials: Manufacturers will need to source materials that are more easily recyclable, or consider using recycled materials in the production of new devices.

As the demand for sustainable solutions grows, manufacturers that fail to adjust their designs will face increasing pressure from both consumers and telecom vendors to evolve.

Bringing the Circular Economy Into Telecom Networks and Services

While much of the conversation around the circular economy focuses on devices, telecom businesses have another opportunity to make their operations more sustainable—telecom networks. Beyond device management, there’s a growing need to integrate circular economy principles into the process of building and managing telecom networks.

This could include:

• Sourcing Recyclable Network Components: Telecom infrastructure components—such as routers, switches, and cables—can be designed with recyclability in mind. This would ensure that when equipment becomes obsolete, it can be recycled or repurposed, rather than discarded.
• Reconfiguring Old Hardware: Instead of simply replacing old network equipment, telecom businesses can reconfigure and repurpose hardware for new uses, extending the lifecycle of their infrastructure.
• Efficient Reverse Logistics: Developing efficient systems for retrieving and recycling equipment from customers will be key. Whether it’s recovering valuable materials or simply refurbishing devices, reverse logistics systems will allow telecom providers to reduce waste while delivering sustainable services.

For UK telecom companies, integrating circular economy practices into their network operations could give them a competitive edge, demonstrating a commitment to sustainability that resonates with eco-conscious customers and partners.

A Strategic Move for Telecom Vendors

Ultimately, the drive toward a circular economy is more than just a regulatory issue—it’s a necessary strategic move for telecom businesses.

As enterprise customers demand greater alignment with their sustainability goals, telecom vendors that embrace refurbished technology, sustainable device management, and circular network practices will be well-positioned to lead the industry.

France’s mandate is just the beginning. The real question is whether UK telecom businesses are ready to proactively respond to the growing call for circularity in the tech sector—or whether they’ll wait until they no longer have a choice.

AI image created by Pixlr