MOBILE RETAILERS MUST RECYCLE, SAYS CALIFORNIA LEGISLATION

California became the first U.S. state to mandate that retailers of new wireless phones implement systems to collect used mobile devices for recycling with the passage of Bill AB 2901, signed into law by Gov. Arnold Schwarzenegger on Sept. 30. But while the legislation officially goes into effect on July 1, 2006, a large majority of wireless carriers have already instituted recycling programs in their retail outlets, and even proponents of the bill suggest its passage has little to do with the environmental efforts of the wireless industry and everything to do with consumers' failure to seize upon those initiatives.

Known as the Cell Phone Recycling Act of 2004, the bill was introduced in February by California assemblywomen Fran Pavley and Christine Kehoe and makes it unlawful for retailers to sell new mobile phones without instituting programs to collect old devices for reuse, recycling or environmentally sound disposal.

In introducing the bill, Pavley said almost 45,000 cell phones are thrown away each day in California and that the arsenic, mercury and lead present in their circuitry represent “a serious threat to human health and our environment.” According to a recent Yankee Group report, in the U.S. alone, about 100 million wireless handsets will be replaced or taken out of service this year, and only about 5 million of them will be recycled or refurbished (see chart).

But even without legislative mandates, the wireless industry has proved proactive in encouraging its customers to recycle unwanted handsets. In 2003, the Cellular Telecommunications & Internet Association unveiled its “Wireless…The New Recyclable” program, while two years earlier Verizon Wireless introduced its HopeLine initiative, which the carrier announced last week has so far recycled, refurbished or resold more than 2 million phones to benefit victims of domestic violence.

“The major benefit from this law is that it will educate consumers to take advantage of systems that are already in place,” said Mike Newman, director of marketing and services for ReCellular, one of several wireless device recycling firms already in operation. “The biggest impact may be on consumer education, not the impact on companies in [the wireless] industry. We want to get the message out that people have choices other than sticking phones in the trash or in a drawer and that charities and the environment will benefit if they take advantage of them.”

Rival GRC Wireless Recycling agreed that customer awareness remains the real challenge. “If there's enough publicity and awareness, people will deposit these phones at their local cellular store,” said Henry Garcia, founder and CEO of GRC. “The intentions of the carriers, manufacturers and retailers are good. The question is how to make the general public respond to this effort.”

Already, there are signs that device recycling is gaining momentum. Verizon reported last week that in the past 12 months, consumers donated more than 647,000 phones to HopeLine, an increase of close to 40% over the previous 12 months. “We don't see a need for legislation on this,” said a Verizon Wireless spokesman. “We already see it as a differentiator in the marketplace, and we view it as core to our business.”

And while California may have been the first state to pass such a bill, it almost certainly won't be the last. “California is typically on the leading edge of environmental legislation, and other bills are being actively pursued in other states, so it's not really not a question of if, but when,” Newman said. “Dealing with one consistent policy on a national basis would be easier than having to deal with 50 individual statutes, but retailers are going to continue to get ahead of the legislative curve regardless.”