Fixed Mobile Convergence

Used cellphones may appear useless to the people who toss them out in a garbage can, but in reality they are very valuable and are growing in worth and numbers, according to a recent news report.

The Wall Street Journal predicts that within a few years, the refurbished cell phone market could account for one fifth of all cellphone sales in the United States, Stephen Manning, CEO of ReCellular (News - Alert) Inc., said.

In fact, The Journal reports that ReCellular resold or recycled 5.2 million cellphones in 2010. That compares to 2.1 million cellphones that were sold or recycled five years earlier.

Given current trends, ReCellular predicts its revenue will increase over 50 percent in 2011. It saw revenue of $66 million in 2010.

It is noteworthy that advanced smartphones can sell for hundreds of dollars even if they are over a year old, according to The Journal. The Journal adds that a used, top-of-the-line Apple (News - Alert) iPhone could sell for about $400.

In addition, ReCellular has started getting cell phones through consumer trade-ins, the company said in a press release.

ReCellular sells about 60 percent of its phones in the United States, according to The Journal. The rest of the phones get sold mostly through dealers in emerging economies located in Asia, Africa, Latin America and Eastern Europe.

In addition, ReCellular collected and processed 5 million phones for reuse and recycling in 2009. Because of their efforts, more than 1.6 million pounds of solid waste were kept out of landfills. These kinds of numbers make environmentalists happy.

Retailers; phone manufacturers; wireless carriers; and website operators are selling reconditioned phones. They often offer consumers cash or some kind of in-store credit for their old devices.

Personal data is usually removed from the used cell phones. They also may need new parts as well as some cosmetic repairs.

TMCnet reports that Shelton Basham, CEO at Full Circle Wireless, said the sheer volume of cell phones in circulation causes the problem.

Americans every day discard almost 350,000 wireless units and accessories into the trash, Basham told TMCnet.