Page 256 - Kaleidoscope Academic Conference Proceedings 2024

2024 ITU Kaleidoscope Academic Conference

sustainable industries focused on refurbishing technologies. As per TRAI’s data report of March 2024, out of the total
It contributes to SDG 12 (Responsible Consumption and 1165.49 million wireless subscribers, 884.01 million
Production) by promoting resource efficiency and waste subscribers use mobile broadband. Therefore, as per estimate,
reduction. Furthermore, by making digital technology more around 280 million subscribers still use feature phones [9].
accessible, it aids in achieving SDG 10 (Reduced
Inequalities), ensuring that the benefits of innovation reach Mobile internet connectivity has a strong macro-economic
all layers of society, particularly the marginalized. impact; an increase of 10 per cent in mobile internet
penetration results in an increase in 2.5 to 2.8 per cent of
ADEME, a French agency for ecological transition, GDP in developing countries like India [10]. However,
commissioned a study to establish the environmental without a compatible device to access mobile internet,
assessments of refurbished digital equipment compared to millions of people cannot reap the potential benefits mobile
their new equivalents, over their entire life cycles. According internet has to offer. The biggest barrier being the
to them, in comparison to purchasing a brand-new affordability of handsets. According to a report by UNDP,
smartphone, refurbished phones create a significantly less 14.96% of the India’s population is multidimensionally poor
environmental impact helping to reduce up to 87% of its majority of which remain in tier 2, tier 3 cities and rural areas
environmental impact each year [6]. Another important fact [11]. Therefore, it becomes increasingly important to make
is, there is over 70% of the chance that the recycling of waste smartphones available at affordable prices in such areas. As
cell phones has close to zero emissions to the environment per the report by IDC (International Data Corporation, a
and that the metal electronic refining process has the most research company), average selling price of a new
considerable environmental burdens among the whole life smartphone in 2020 was around Rs. 13,943 while that of a
cycle process in different scenarios [7]. second-hand smart phone was around Rs. 6,913 [12]. This
shows that second-hand smartphones trade at around half the
Despite these benefits, many consumers are concerned about average selling price of a new smartphone.
performance of secondhand and refurbished phones
compared to new phones because of the fear of ending up The second-hand smartphone market in India will evolve
purchasing substandard devices or devices that were rapidly as more devices get introduced in the market. In 2022,
previously involved in unlawful activities. This research 144 million new smartphones were shipped in India while in
paper aims to address these concerns by conducting a 2023, the number of smartphone shipments in India were 146
thorough analysis and presents proposals. million. The total Smartphones in the price segment of less
than Rs 17,000 were around 64% in 2023 [13]. Considering
This paper discusses size and scope of the secondhand the average life of a smartphone as 3 years for this price
smartphone market, explores various refurbishment segment, more than 30 million smartphones have a potential
processes, standards to be set up to build consumer trust and to be available in the second-hand market in 2024-2025.
facilitate market expansion. It also discusses the potential of Typically, a phone is sold at 60-65% of its price after one
this market in digital inclusion and emphasizes the role of the year of use and this further depreciates by another 20-25%
government to formalize, regulate and stimulate refurbished after every subsequent year of use. Therefore, the price of
phone markets to bridge the digital divide. The benefits of such phones in the second-hand market can be as low as Rs.
this market for both companies and consumers are discussed, 3,000 which can come under the affordable category for
as well as the challenges and concerns. In conclusion, this Below Poverty Line people with further government
paper provides actionable suggestions to formalize the incentives as mentioned in section 5.5.
refurbished phone market for bridging the digital divide.
Different types of pre-owned phones are available in the
2. OVERVIEW market, with different prices and levels of guarantee:
1. Second-hand phones: used phones that are directly sold
The mobile market can be segmented into two groups - or given to individuals or through an intermediary
smartphones and feature phones. ITU defines a smartphone (retailer, marketplace). They tend to be cheaper than
as “a mobile handset with a touchscreen display that is used other types of preowned phones and the price is often
as the person’s primary phone device, but enables access to negotiated (no fixed price). However, there is no
advanced Internet-based services and performs many of the guarantee of the quality of the phone.
functions of a computer, including having an operating 2. Refurbished phones: pre-owned phones that have
system capable of downloading and running applications, undergone a series of tests and, if necessary, repairs, by
also those created by third-party developers”.[8] a specialized private company to guarantee they are
operational. Phones are generally graded based on their
Feature phones, on the other hand, are basic handsets with a quality; the lower the grade, the higher the discount
smaller non-touch screen having 9 key layout that run on the offered. Refurbished phones are sold with a guarantee of
Real Time operating system and can be used for voice calls approximately six months.
and sending text messages. They have limited Internet 3. Open and returned: phones that have been bought by
connectivity and some pre-installed applications; however, consumers and opened, but not used. They are in perfect
the system does not support downloading of native condition but cannot be sold as new. They are generally
applications developed by third-party developers.

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