Trade Law Daily is a Warren News publication.

Sprint to Require Green Phones, Expand Recycling Program

Sprint Nextel plans to eventually hold phone manufacturers to new green design standards, Sprint CEO Dan Hesse told the Senate Communications Subcommittee at a hearing Tuesday. The carrier also is expanding its cellphone recycling program to credit customers for turning in other carriers’ phones, he said. Senators applauded Sprint’s green efforts, but Sen. Amy Klobuchar, D-Minn., needled Hesse on early termination fees. Chairman John Kerry, D-Mass., said he’s frustrated that more companies haven’t gone green.

Sign up for a free preview to unlock the rest of this article

Timely, relevant coverage of court proceedings and agency rulings involving tariffs, classification, valuation, origin and antidumping and countervailing duties. Each day, Trade Law Daily subscribers receive a daily headline email, in-depth PDF edition and access to all relevant documents via our trade law source document library and website.

The information communications technology (ICT) industry can help the rest of the country “dramatically reduce its carbon emissions,” said Kerry. “Modernizing our infrastructure, setting broad operating standards and establishing market incentives are the keys to success.” To that end, Kerry said he looked forward to reviewing the FCC’s National Broadband Plan due next month. “Early indications are they are going to set bold goals for themselves, the industry and the Congress,” he said.

Handset makers will have to produce devices that “meet or exceed” new green design specifications crafted by Sprint before they can operate on the carrier’s network, said Hesse. The new criteria require devices to be made of sustainable materials, manufactured and packaged sustainably, free of possibly hazardous materials, “highly energy-efficient or even self-charging,” compatible with interoperable accessories, and “fully and easily recyclable,” Hesse said. Sprint and vendors Samsung, HTC, LG, Motorola, Palm, RIM and Sanyo developed an environmental “scorecard” to help them gauge how devices meet the carrier’s environmental standards, he said.

Hesse also unveiled an expanded wireless handset buyback program under which current and new customers may receive an instant account credit for turning in up to three eligible wireless devices. Sprint will accept devices “regardless of manufacturer or carrier,” said Hesse, estimating more than 900 devices are eligible for recycling. Sprint has long had a buyback program, but only for its own devices. Sprint pays $5 to $300 for old phones, depending on the device, and a listing of various phones’ buyback value is available on Sprint’s website.

Meeting Sprint’s green specifications isn’t a requirement for manufacturers yet, “but eventually it will be,” said Sprint spokesman John Taylor. “We plan to work with manufacturers to help them meet these standards over time.” He said Sprint previewed the new green policy with manufacturers long before announcing it.

Klobuchar praised Sprint’s green effort, but reprimanded Hesse on wireless industry ETFs. “Do remember, as much as we want to compete on green … and new technologies, people are locked in on early termination fees,” the senator said. Hesse said his company has some of the most consumer-friendly fees in the industry, and offers prepaid service for consumers who don’t want to sign a long-term contract. Klobuchar replied “We could do these fees as long as they're prorated and as long as they make sense with the difference between the actual cost and the discount.”

Kerry asked why Sprint and some other companies embracing green ethics “are the exception rather than the rule.” Companies have made money going green, and are growing, he said. “Why do we have such trouble getting people to understand this?” Companies need to find a business case for going green because it takes a significant investment upfront, Hesse said. But Sprint found demand from consumers and reduced costs for the company, he said. Sprint’s recycling program has also been good business, because the company has been able to resell many phones and mine others for material resources, Hesse said. “There’s value in these devices,” he said. “It makes no sense for consumers to throw them away.”

The number of people who don’t want to pay extra for green will “dwarf” those who would be willing to, said Tendril Networks CEO Adrian Tuck. Customers are hesitant to pay extra for a green device if they believe it’s inferior to other products on the market, Hesse said. However, “if all things are equal, consumers will go green.” If carriers sell more high-quality green devices, consumers will buy them, he said.

The federal government should adopt policies supporting “the full potential of ICT to drive significant energy efficiency gains throughout the economy,” said Lorie Wigle, director of Intel’s Eco Technology Program, in written testimony. “Realizing this full potential will require aggressive public policies to correct market failure, remove implementation barriers and provide ICT-adoption incentives.” Government should work with industry to increase ICT adoption to improve energy efficiency, said Kathrin Winkler, chief sustainability officer of EMC2. Government “should expand the availability of broadband … in cities and rural areas and collaborate with industry to develop a national strategy for the use of ICT for improved energy efficiency and reduce CO2 in the economy.”

After the hearing, Sprint’s rivals talked up their own green efforts. “Verizon has long been committed to reducing the environmental impact of its operations and helping its customers do the same,” and the company’s carbon intensity is about nine times below the U.S. average, said a spokesman. Meanwhile, an AT&T spokesman highlighted recent commitments to use alternative-fuel trucks and to expand the company’s free recycling program to allow recycling cellphones and accessories through the mail. T-Mobile plants trees for customers who opt for paperless billing, and has an app that gives customers discounts on sustainable products from certain vendors, a T-Mobile spokesman said.