WEBVTT 00:00:00.834 --> 00:00:01.584 Barnik, welcome. 00:00:01.626 --> 00:00:05.255 I want to talk about the environmental impact of refurbished phones. 00:00:05.255 --> 00:00:08.466 Just tell me exactly how they compare to new ones. 00:00:08.466 --> 00:00:12.554 Yes, so, Georgie, if you look at the environmental impact 00:00:12.554 --> 00:00:17.058 of producing a brand new iPhone or a brand new Samsung Galaxy, 00:00:17.058 --> 00:00:22.814 typically we will expend nearly 80 kg of carbon dioxide in terms of minerals and 00:00:22.814 --> 00:00:28.737 material you need to mine, roughly 35 to 40 kg of material needs to be mined. 00:00:28.737 --> 00:00:34.868 And remarkably around 3,500 to 4, 000 liters of water needs to be expended 00:00:34.868 --> 00:00:36.661 to create a new phone. 00:00:36.995 --> 00:00:41.082 Now, if you refurbish the phone, you actually save 90% of that. 00:00:41.374 --> 00:00:44.502 So if you look at all the numbers I just gave you divided by ten, 00:00:44.502 --> 00:00:48.173 and that's the environmental impact of a refurbished or a second life phone. 00:00:48.381 --> 00:00:51.843 I imagine most people keep their phones for around about two years, 00:00:51.843 --> 00:00:54.429 but how long can they go on for a good smartphone? 00:00:54.512 --> 00:00:57.307 So if you look at around the world, once someone purchase a phone, 00:00:57.307 --> 00:00:59.434 they will keep their phones for two to three years. 00:01:00.018 --> 00:01:04.647 But if you look at the phone and take the lifecycle of the phone itself and not the 00:01:04.647 --> 00:01:07.484 individual, you can have these phones last for six, 00:01:07.484 --> 00:01:09.652 seven, eight, sometimes even ten years. 00:01:10.236 --> 00:01:13.448 We have seen a lot of operators, mobile operators, 00:01:13.448 --> 00:01:16.868 around the world where if you look at their iOS space, 00:01:16.868 --> 00:01:20.455 you will find significant amounts of iPhone 7, 8, 9, 10. 00:01:20.747 --> 00:01:25.710 And these are phones which have had second life, third life, fourth life, fifth life. 00:01:25.710 --> 00:01:28.671 And every time you're giving a new life to the phone, 00:01:28.671 --> 00:01:32.467 you are saving 90% of the environmental impact of buying a new phone. 00:01:32.675 --> 00:01:37.639 How can telcos play a larger role, do you think, in the refurb ecosystem? 00:01:38.139 --> 00:01:40.600 See, telcos play a very critical role for a 00:01:40.600 --> 00:01:41.684 very simple reason. 00:01:42.060 --> 00:01:46.064 They own the consumers, right? And have relationship with the consumers 00:01:46.064 --> 00:01:49.943 and have a very important role in shaping the behavior of consumers. 00:01:50.276 --> 00:01:53.196 Historically, the industry for refurbished phones has 00:01:53.196 --> 00:01:57.659 been driven by people who cannot afford a new phone and want to buy a cheap phone, 00:01:57.659 --> 00:02:01.955 whether from an affordability point of view or from a point of view of having a 00:02:01.955 --> 00:02:03.081 second, third device. 00:02:03.498 --> 00:02:09.546 But what is now emerging,particularly in parts of Europe and the US, is that consumers are demanding for a 00:02:09.546 --> 00:02:11.339 second life device, right? 00:02:11.339 --> 00:02:14.717 And telcos can enable this by raising consumer awareness, 00:02:14.717 --> 00:02:18.221 attaching these second life devices to their plans, right? 00:02:18.221 --> 00:02:21.015 Today, if you buy a device in any country like 00:02:21.015 --> 00:02:26.187 the US or even in Europe, it comes with a payment plan and a monthly subscription. 00:02:26.187 --> 00:02:28.982 Now, the telcos can formalize this as a bundle, 00:02:28.982 --> 00:02:33.403 and consumers will then see a lot of authenticity and trust for this device. 00:02:33.403 --> 00:02:35.071 So telcos can play a critical role. 00:02:35.864 --> 00:02:38.158 They are beginning to participate in this. 00:02:38.825 --> 00:02:41.744 You'll see a lot of telco shops, notably in France, 00:02:41.744 --> 00:02:44.956 where they have an area called recondition or refurbish, 00:02:44.956 --> 00:02:48.459 where they're actually explicitly selling refurbished phones. 00:02:48.751 --> 00:02:50.295 And why should telcos do it? 00:02:50.295 --> 00:02:56.050 If you again look at Europe, most telcos have committed to net zero 00:02:56.050 --> 00:02:57.719 goals of 0% by 2040. 00:02:57.719 --> 00:03:00.555 And refurbished devices are a very important component of that goal. 00:03:01.264 --> 00:03:04.767 Staying in Europe, I was just wondering how you see that 00:03:04.767 --> 00:03:05.935 market evolve here. 00:03:06.519 --> 00:03:09.647 See, Europe has been a very conservative 00:03:09.647 --> 00:03:15.862 market with a lot of regulation protecting consumers and privacy on quality. 00:03:15.862 --> 00:03:21.034 There are also a lot of technology, I would say regulations, on CE mark, USBC, 00:03:21.034 --> 00:03:27.332 which has made structured players like ourselves hesitant to participate in the market. 00:03:27.332 --> 00:03:32.879 But what we are seeing is that telcos and big retailers are now stepping in to 00:03:32.879 --> 00:03:35.131 create the market for consumers. 00:03:35.423 --> 00:03:40.053 If you look at benchmarks in emerging markets, for every single new phone sold, 00:03:40.053 --> 00:03:42.347 we'll have four refurbished phones sold. 00:03:42.639 --> 00:03:43.640 It's one is to four. 00:03:44.182 --> 00:03:49.646 In the US, it's .3 is to one, whereas in Europe, it's .05 is to one, right? 00:03:49.646 --> 00:03:52.148 So there's a huge headroom for Europe to grow. 00:03:52.565 --> 00:03:56.361 And we believe with the right consumer value proposition, the right quality, 00:03:56.361 --> 00:03:59.572 the right trust, right, and the telcos and retailers stepping in 00:03:59.572 --> 00:04:03.034 to formalize and legitimize this, I think Europe can be, I would say, 00:04:03.034 --> 00:04:05.703 a torchbearer for this revolution as we move forward. 00:04:05.954 --> 00:04:06.955 Fantastic, Barnik 00:04:06.955 --> 00:04:08.373 Thank you so much for your time. 00:04:08.706 --> 00:04:09.415 Thank you, Georgie.