Mobile phone networks in the UK heavily subsidise handsets for those taking out contracts or upgrading and this affordability means there is no market for re-use.
This contrasts with developing countries where airtime is often sold separately and users often have to purchase a non-subsidised phone separately. The high purchase costs makes the second hand phone market an attractive proposition, particularly among poorer people. This situation means there is a ready market for reusable and cheaper phones from the UK. A win-win situation is created – phones with plenty of lfe in them are reused and many individuals and businesses in the developing world can gain access to telecommunications.
A couple of years ago most phones went to Aftica, but nowadays Hong Kong has become established as the main destination for resold phones, most being sold at auction. Large trading operations buy phones up in bulk and they are then distributed around the world to places like Africa, India and China. However, selling at auction makes it difficult to establish precisely where handsets finally end up. Many phones are sold by the crateful to third party dealers. These sell them on to individual users or operators in developing countries. A small number of the high end phones are sold to insurance companies in the developing world to re-enter the market as refurbished handsets. As it is not possible to trace most phones, many mobile phone recyclers don’t actually know their final destination. However, some mobile phone companies prefer to deal directly with distributors rather than with auction houses and they also take care to record IMEI numbers to allow tracking where needed.