In today’s competitive telecom landscape, Mobile Network Operators (MNOs) are under increasing pressure to balance performance, sustainability, and profitability. One of the most underutilized strategies for achieving this balance is the effective monetization of surplus telecom equipment.
Whether due to network modernization (such as 5G rollouts), decommissioning legacy systems, or demand fluctuation across regions, MNOs often accumulate excess hardware that ends up sitting in warehouses—untouched and unmonetized. This blog explores how surplus telecom equipment can become a valuable asset rather than a liability, enabling new revenue streams, reducing costs, and supporting environmental commitments.
1. Understanding the Value of Surplus Equipment
Surplus equipment includes any telecom hardware that is no longer in active service but remains functional or repairable. Examples include:
- Baseband Units (BBUs)
- Remote Radio Units (RRUs)
- Antennas
- Power units and backup systems
- Optical transmission equipment
According to GSMA’s Mobile Net Zero report, global operators are already optimizing infrastructure usage to cut Scope 3 emissions. Monetizing surplus is an extension of that effort, contributing directly to cost recovery and sustainability.
2. Key Strategies for Monetizing Surplus Assets
A. Direct Resale to Other Operators
Emerging markets, MVNOs, and smaller ISPs often seek cost-effective equipment to expand their networks. MNOs in mature markets can sell decommissioned equipment in working condition through B2B exchanges or dedicated platforms such as:
- NetZero.tel’s Circular Platform
- TXO
- GreenTek Solutions
Example: According to a 2023 Deloitte telecom report, secondary market telecom hardware sales are projected to grow by 14.3% annually through 2027.
B. Equipment Refurbishment for Internal Use
Rather than buying new, operators can refurbish existing gear to redeploy in:
- Rural/low-traffic areas
- Temporary deployments (e.g., festivals or emergencies)
- Lab/testing environments
This approach saves CAPEX and reduces equipment lead time, particularly useful when global supply chains are under stress.
C. Trade-In or Buy-Back Programs
OEMs like Nokia, Ericsson, and Huawei offer trade-in programs for older equipment, providing discounts on new gear or cash incentives. These programs ensure that even outdated assets are returned to the OEMs for material recovery and safe disposal.
D. Recycling with Certified Partners
Non-sellable, obsolete gear can still provide value through responsible recycling. Certified recyclers (R2, e-Stewards) recover:
- Copper
- Gold and rare earth metals
- High-grade plastics
By engaging in recycling, MNOs reduce their environmental liability and can also access rebates for recovered materials.
3. Financial and Sustainability Impact
Let’s look at the numbers:
- A single BBU unit reused or resold can avoid over 120 kg of CO₂e emissions (NetZero sample data, 2024).
- According to the ITU-T L.1023 standard, refurbished equipment can extend its service life by 5–7 years, with an average cost reduction of 40–60% compared to new hardware.
- Selling 1,000 units of RRUs at half of OEM list price can generate $250K–$400K in revenue, depending on the region and demand.
By adopting structured surplus monetization programs, operators have reported millions in recovered value while improving circularity metrics for their ESG reporting.
4. Monetization Best Practices for MNOs
To maximize returns while ensuring compliance and security, MNOs should implement the following practices:
| Best Practice | Benefit |
|---|---|
| Inventory audits | Identify hidden or underutilized assets |
| Condition grading | Classify equipment based on reuse potential |
| Secure data wiping | Ensure compliance with GDPR, HIPAA, etc. |
| Partner with certified vendors | Guarantee traceability and eco-compliance |
| Implement a circular asset policy | Align with ITU and GSMA Net Zero guidelines |
5. Case Study: European Operator Recovered €2M in Surplus Sales
A leading Tier 1 European operator partnered with a circular telecom service provider (NetZero-style platform) and audited over 20,000 retired units. Within six months:
- €2 million was recovered through resale and trade-in
- Over 700 metric tons of CO₂e was avoided
- Equipment went to support 4G rollout in Southeast Asia
This initiative not only funded network upgrades but improved ESG ratings, which positively influenced investor perception.
6. The Strategic Outlook
As telecom continues to scale and evolve, circular strategies like surplus monetization will be central to both financial and sustainability goals. MNOs that embed these approaches into their procurement and decommissioning workflows stand to gain significantly—both from a revenue and environmental perspective.
The upcoming FutureNet Middle East & Africa 2025 in Dubai will feature discussions on sustainable telecom strategies, and NetZero.tel is proud to support these conversations as a Bronze Sponsor. Learn how we can help your organization unlock the full potential of surplus telecom assets.
References
- GSMA Mobile Net Zero Report 2023: GSMA
- ITU-T Recommendations L.1023, L.1015 on equipment lifecycle and circularity
- Deloitte 2023 Telecom Industry Outlook
- European Telecommunications Network Operators' Association (ETNO) – Circular Economy Guidelines
- NetZero Sample Carbon Reporting Data, 2024