Since the launch of the iPhone in 2007, consumers wishing to have the latest mobile phone handsets have found themselves being tied to longer contracts as the value of the smartphones they want rose along with the evolution of the technology. As a result, the industry standard contract has shifted from 12 months to 18, 24 and even 36 month agreements. However, with advances in smartphone features advancing at pace, consumers are clearly finding themselves left behind.

Both O2 and Vodafone have announced that they will be introducing a return to 12-month contracts which will allow consumers to pay a fee, likely to be in the region of £100, in order to upgrade their phones.

The news is a boost to the industry as a whole and represents an opportunity for leading mobile phone take-back pioneer Envirofone, part of the Eazyfone Group. Eazyfone Group Chief Executive Herman Spruit said of the news “Envirofone has led the way in the consumer take-back industry and the fact that Vodafone and 02 will once again be offering 12 month contracts comes as an added bonus. There is likely to be an additional 7 million handsets available to our sector as a result of this.”

The change to contract lengths underlines the pace at which the smart phone market is evolving and the subsequent consumer demand to keep up with changing technology. Herman Spruit commented that “This proves what we have always believed; that consumers’ demand for smartphone technology will continue to grow and that they feel the extra 6 or 12 months on a contract is too long to wait to upgrade to their next model.” He added “We have already seen a significant rise in the sale of smartphones as consumer reliance on mobile internet has increased. Envirofone provides a quick and simple way for consumers to sell their old handsets when they are ready to move on to new technology and we have positioned ourselves strongly as the brand consumers will choose to go to.”

Since his appointment as Group Chief Executive in September 2010 Herman Spruit has led the next phase of growth for the company including an ambitious drive into the European consumer market and expansion of the reseller sector in Asia and Africa. The importance of the changes in the UK market will benefit Eazyfone’s overall plans for growth. Mr Spruit added “With more consumer churn in our domestic market, Eazyfone will be able to meet the increasing demands for smartphone technology that we experience in the international reseller sector in Asia and Africa. The return of more 12 month contracts will be welcomed across our industry”.

David has been brought onboard to ensure the company’s global operations run seamlessly through advanced IT solutions. He will spearhead the development of an internet-led trading platform that will enable Eazyfone to keep complete control of the flow of handsets through state-of-the-art track and trace technology.

He brings a wealth of experience to the role, having previously worked as Technology Director of automotive marketing at the Trader Media Group – owner of autotrader.co.uk. David was responsible for engineering software products and delivering agile projects, which resulted in scale, growth and dominance for the UK’s leading motoring website. Prior to joining the Trader Media Group, he spent seven years as a Senior Technical Consultant at IT professional service practice Informed Solutions. It’s here that he worked with 3 Mobile, the Department of Trade and Industry (DTi) and the Office of the Deputy Prime Minister.

David commented: “I’m thrilled to be joining such a high-calibre team. The growth in new and existing markets will undoubtedly bring fresh opportunities and Eazyfone is investing significantly to meet this need and further develop the sector.

“Central to that success is technology and I will be working closely with the team to ensure we have the capacity to deliver our extensive IT requirements, while creating new ways to meet customer needs.”

Eazyfone has hand-picked a team of talented experts to drive its international development in new sectors. With in-depth knowledge and experience of the mobile phone industry and internet marketing the team is well positioned to deliver a sustained and superior performance.
Herman Spruit, who was appointed Group Chief Executive in September 2010, said: “With his experience in building large scalable consumer websites, David is ideally suited for the next phase of growth at Eazyfone.

“The success of the company shows that there is a real consumer need for a transparent and hassle-free way to trade mobile phones – one that allows them to realise cash and choose different models. This is very similar to trading personal cars, but with one big difference: you can put them into an envelope! We are very pleased to have David join us to lead the IT development that is critical to our growth.”

Herman was appointed by the Board to lead the next phase of growth for the company, which includes an ambitious expansion drive into both the European consumer market and the reseller sector in Europe, Asia and Africa.

He has worked closely with Eazyfone for more than three years. Previously as Chairman, he oversaw the highly successful consumer strategy that helped to establish the MPRS market. The company built a leading position in the recovery and reuse of end-user stock in the UK, resulting in Eazyfone being ranked fourth in the International Times Fast Track 100, as well as it winning the 2010 Sunday Times Fast Track 100 Green Award.

¹ Ovum – ‘Please replace the handset: mobile phone recycling in the UK’, March 2010

The 6310i was introduced to the mobile phone market in late 2002 and served as the preeminent GSM phone in the corporate world until it was discontinued by Nokia in 2004. The model was famed for the robust nature of its build quality, its long battery life and the simplicity of the device and has endeared itself to users remaining popular to this day.

Users of modern smartphones may find it hard to believe that a phone without internet access could still be in demand but the phone does still have a devoted and loyal following. The model is still widely available on the internet with one specialist selling refurbished and warrantied handsets for £89.99, claiming to have sold over 25,000 of the refurbished models.

Eazyfone’s Sales Manager Gregory Aslanov can testify to the phones popularity ‘since joining Eazyfone in 2004 I would struggle to think of an overall more popular phone in terms both what we get from consumers and what traders want from us’. Greg added ‘of course we have moved to a market dominated by smartphones but the popularity and continual demand for 6310i’s makes it one of the most popular mobile phone handsets of all time. In terms of reliability, it has perhaps never been surpassed’.

After launching in 2005 as one of the UK’s first mobile phone recycling companies, Envirofone has carved a niche for mobile phone recycling by offering cash incentives to its customers, whilst also giving them the option to do their bit for the environment and developing countries.

However, despite Envirofone’s efforts, only 10 per cent of the estimated 80 million phones in circulation in the UK are currently recycled or refurbished, highlighting the huge number of phones that still end up in landfill.

Julie Snape, Head of Marketing at Envirofone, said: “It’s very reassuring to learn that together with our customers, we’ve recycled 1.5 million phones in the last year. However, when you look at the figures, we’re only really scratching the surface and UK households could certainly afford to be greener.

“Plus, with games consoles becoming increasingly popular, we’ve got concerns about the number of electronic ‘boy’s toys’ that are heading for landfill due to the absence of an efficient recycling model for the gaming industry.”

Working in conjunction with the International Rescue Committee, Splash Mobile Money Ltd has commissioned the first of many community agencies to support mobile money transactions and mobile airtime sales.

Splash for Cash is Sierra Leone’s first mobile payment system. In using the handsets donated by Envirofone, young people in Sierra Leone will be able to transfer money to other mobile-users just by using their mobile phones.

Commenting on the company’s work with Splash, Julie Snape, head of marketing at Envirofone, said: “This project demonstrates the dramatic effect that our refurbished phones can have on local economies in Sierra Leone. The handsets allow the creation of micro-franchise jobs, allowing some of the world’s poorest people to make a living.

“The mobile phones donated by Envirofone will be invaluable for the development of small businesses in the country. We’re extremely proud that, by enabling these small agencies in this way, Envirofone is making a key contribution to a part of the world where basic financial services are seriously lacking.”

Research conducted by Envirofone shows that there are approximately 90 million mobile phones lying redundant in the UK, with only around 20% of these phones ever being recycled.  Of the handsets received by Envirofone, 95 per cent are re-used or repaired and then sold across the world.

Herman, 50, joins Eazyfone as Group Chief Executive. He was appointed by the Board to lead the next phase of growth for the company, which includes an ambitious expansion drive into both the European consumer market and the reuse and reconditioning sector in Europe, Asia and Africa.
 
The Dutch national has worked closely with Eazyfone for more than two years. Previously as Chairman, Herman oversaw a highly successful consumer strategy that helped to establish the MPRS market. The company built a leading position in the recovery and reuse of end-user stock in the UK, resulting in Eazyfone being ranked fourth in the International Times Fast Track 100, as well as it winning the 2010 Sunday Times Fast Track 100 Green Award.

Herman commented: “In recent years, Eazyfone has built-up an extremely talented team — one that has created a strong position for the company in the UK market. I’m very excited about leading the Envirofone consumer brand into new territories in Europe, while building Eazyfone’s position in Asia — both of which will undoubtedly deliver fast-paced development.

“The significant rise in smartphone sales and the continuing development and use of the mobile internet are helping to enhance people’s lives and their businesses — both here and in developing markets. Our aim is to build a business that supports that growth and provides a quick and simple way for individual consumers, businesses and insurers to buy or sell their phones, with the confidence that their handsets have been dealt with responsibly and sustainably.”
Herman brings a wealth of experience to Eazyfone. After studying economics in the UK, he started his career with HSBC, working in Hong Kong as an international manager. Herman obtained an MBA from IMD business school in Switzerland before joining Marakon Associates in 1998, where he became Managing Partner for the region.

During his 30-year career, he has rescued a failing Hong Kong bank, developed and delivered a highly successful internet strategy for a global media company, while establishing Marakon Associates as a top-end strategy and management consulting firm. Herman has also worked with some of the world’s biggest companies, including Boots, Reuters, ABN AMRO, De Beers and WH Smith, helping to achieve sustainable and profitable growth.

Bob Gardner, non-executive director at Eazyfone, commented: “His comprehensive understanding of Eazyfone and its team, together with extensive experience in developing rapid growth strategies for companies in Asia, Europe and Africa, means that Herman is perfectly suited and more than qualified to navigate through the challenges ahead.”

The company, which can offer anywhere up to €280 for old mobile phones, started trading in Ireland in 2006, later launching a fully integrated advertising campaign in November 2009.

Envirofone is Ireland’s largest mobile phone recycling company and aims to promote the global benefits of recycling handheld electronics. Envirofone is free to use, pays cash for old mobile phones and, most importantly, supports a greener environment.

Nick Brown, CEO at Envirofone, says: “This is an exciting time for Envirofone and it’s very pleasing to have served so many satisfied customers in Ireland. Irish people recycle over a third of their household waste, significantly more than many other countries in Europe including the UK, Italy and France. Envirofone is providing another outlet for people in Ireland to recycle a different form of household waste.”

The organisation provides a service to collect, refurbish, remarket and recycle millions of handsets each year. In the UK, Envirofone has paid out over £53m and estimates that there are still over 85 million redundant phones that people could be disposing of in an environmentally-friendly and profitable manner.

Nick adds: “There are millions of handsets left unused and discarded. By recycling their old phones Irish customers could make a tidy sum of money to spend on whatever they like.”
In recognition of its business success, Envirofone recently scooped the Virgin Green Award at the 13th annual Sunday Times Fast Track 100 awards, an evening celebrating the country’s fastest growing companies.

Customers simply send their old mobile phone to Envirofone in a freepost envelope and they receive a cheque for the value of the handset – anything up to €280.

Customers can also rest assured that their phone will be disposed of responsibly and in accordance with the Government’s WEEE Directive (Waste Electronic & Electrical Equipment).

The Macclesfield-based company won the award in recognition of its business success – the company refurbished more than 95% of the 2.3 million mobile phones it collected last year.

The ceremony took place at Sir Richard Branson’s home in Oxfordshire on Wednesday 12th May, and brought together the cream of the country’s leading entrepreneurs and businesspeople.

In addition to winning the prestigious Virgin Green Award, Eazyfone, trading under the name Envirofone, ranked at number five on The Sunday Times Fast Track 100 Entrepreneurs – the list of the fastest growing companies in the UK.

Nick Brown, managing director at Envirofone, was delighted to accept the honour: “Winning the Virgin Green Award is the icing on the cake after being ranked the country’s fifth fastest growing company. Envirofone continues to experience an exceptional level of success; this accolade is testament the consistent hard work put in by our dedicated team.”

Based at Lyme Green Business Park in Macclesfield, Envirofone employs 125 staff, and has trebled its turnover in 2009. Sales have soared from £33 million to £44 million this year.

The company recently underwent a significant re-brand earlier in the year whereby Envirofone’s website, advertising campaign and logo were all updated to coincide with the company’s continued success and plans for expansion.

The Fast Track 100 awards saw companies such as Moonpig.com, Cyclescheme and NET-A-PORTER gain recognition for their achievements in business. The awards were sponsored by major brands such as HSBC, Royal Mail and Virgin.

Envirofone is the UK’s largest mobile phone recycling company and since its launch has paid out over £50 million to its customers. Customers simply send their old mobile phone to Envirofone in a freepost envelope and they receive a cheque for the value of the handset – anything up to £250.

Customers can also be rest assured that their phone will be disposed of responsibly and in accordance with the Government’s WEEE Directive (Waste Electronic & Electrical Equipment).

As a nation, we are hoarding a staggering £28 billion worth of surplus electronics that are simply gathering dust around the home – enough revenue to pay approximately 20 per cent of the UK’s record budget deficit.

Many of these electronic items going to waste are unused Christmas presents, spare computers that are never switched on, or outdated versions of the latest games consoles. If sold on auction sites or at car boot sales, these items could fetch hundreds, if not thousands of pounds for owners.

Last year, approximately one million tonnes of discarded electronics were disposed of as part of the big spring clean, with most of this relegated to landfill sites.

A survey by Envirofone, the UK’s largest mobile phone recycling company, found that households in Yorkshire hold the highest share of electronic surplus. The average family there is unwittingly stowing away over £350 worth of redundant electronics in drawers, cupboards and attics. Homes in Greater London had the smallest accumulation of unwanted goods, with only £75 worth of items.

Jon Butler, brand manager at Envirofone, commented: “It’s astonishing how much people throw away in unwanted electronics, particularly in light of the current economic climate. Many Brits could be raking in hundreds of pounds if they just took the time to sell these obsolete items.”
Envirofone recycles mobile phones and has so far paid out over £50 million to its customers since its launch in 2005. Customers simply send their old mobile phone to Envirofone in a freepost envelope and they receive a cheque for the value of the handset – anything up to £250. Customers can also rest assured that their phone will be disposed of responsibly and in accordance with the Government’s WEEE Directive (Waste Electronic & Electrical Equipment).

Envirofone – which has so far paid out £50 million to its customers in exchange for their unwanted mobile phones – has invested £1.6 million into the re-branding project.

As well as dropping the ‘.com’ from its official company name, Envirofone has come up with a fresh, quirky approach. The new logo has changed from green to blue and now incorporates a recycling emblem — reflecting a core part of the company’s ethos.

Jon Butler, creative & brand manager at Envirofone, commented: “After a hugely successful 2009, Envirofone is looking to reach a broader target audience and drive further growth. We felt that the re-brand was necessary to keep Envirofone modern and adaptable to complement our plans to diversify, especially with our current European expansion into France Germany and Sweden.
“We’ve worked alongside a number of creative suppliers to help transform our corporate identity and are extremely pleased with the results.”

The company has spent several months researching the corporate rebrand and testing various options through focus groups to select an identity that reflects its personality, ambition, ethics and future positioning. The logo can be easily adapted for any diversification Envirofone may enter into.
Recycling mobile phones helps protect the environment from contaminated and harmful toxins found in mobile phones and accessories. This is in accordance with the Government’s WEEE Directive (Waste Electronic & Electrical Equipment).