As telecom networks continue to expand, managing material streams from network equipment becomes increasingly important. To reduce material waste, enhance resource efficiency, and decarbonize its network equipment, Ericsson works with circularity through embedding sustainable design in product development, providing free e-waste management for customers and complementing its product portfolio with Refurbished Network Equipment and spare parts.
The challenge
The global amount of e-waste is increasing at a rate five times faster than recycling efforts, reaching a record 62 million tons in 2024 [1]. This means that the ICT sector must lower its environmental impact and become more circular. Although professional telecom equipment is not the lion’s share of this e-waste flow, network equipment manufacturers like Ericsson face growing demands to reduce emissions and minimize the use of precious materials.
To keep pace with the exponential growth in data demand and the fast pace of innovations in the telecom industry, equipment manufacturers both improve hardware performance and develop software innovations that prolong the lifetime of the installed hardware. However, customers might still choose to modernize their networks and replace functioning equipment at a faster pace than the typical network equipment lifetime of 10 years.
The solution
To tackle these challenges, Ericsson offers to takes back used equipment from customers and transports it to processing facilities for refurbishment or spare part harvesting. The refurbished equipment is then reintroduced into the network as a complement to their existing spare part offerings and as a sustainable complement to their regular new product sales. This closed-loop system not only reduces environmental impacts but can also offer refurbished units at a lower embodied carbon compared to a new similar equipment.
Ericsson’s Refurbished Network Equipment offering is part of a broader circularity strategy that also includes design for longevity, material recovery, and e-waste management programs. These initiatives collectively empower Ericsson to limit the need for new material and extend the useful life of products.
By taking back used equipment from customers, and refurbishing, testing and upgrading them as needed, Ericsson delivers network equipment of equivalent quality but with significant lower environmental footprint. In fact, refurbishment reduces supply chain carbon emissions by more than 80% compared to manufacturing new equivalent products.
The business model
Ericsson Reuse Equipment is a circular and cost-effective service with a long-term view on the present and future needs of decommissioned equipment. When the time comes to upgrade or replace an existing network, Reuse Equipment service will ensure optimal reuse of the customer’s deinstalled equipment. However, this requires a holistic approach on sustainability, as using refurbished products in a sustainable way is often viable only for relatively new equipment due to technology life cycles and energy consumption emissions trade-offs.
While Ericsson’s refurbishment process is well established, scaling these operations remains a challenge due to unpredictable take back volumes, varied equipment types across customers and regions, and logistical complexities. To address this, Ericsson is actively exploring enhanced tracking solutions to increase the availability and variety of refurbished equipment in its catalogue.
The customer benefits
In addition to supporting Ericsson’s circularity strategy, the offering provides the following advantages to customers:
Reduced environmental impact: Customers can lower emissions through reused and refurbished network equipment and spare parts.
Certified products: customers benefit from trusted, secure, and efficient equipment backed by Ericsson’s certification and quality assurance processes. They receive equipment with the same reliability and performance standards as new products, without additional environmental burdens.
Fact sheet: Ericsson
Industry: Telecommunications equipment and services
Annual revenue: 248 BSEK
Founded: 1876
Employees: 94 000
Launch of circular business model: 2019
Phase of circular business model: Scale up
How was the solution developed: Internal development
[1] The global E-waste Monitor 2024 – Electronic Waste Rising Five Times Faster than Documented E-waste Recycling: UN