Orange France is a leader in the reuse and recycling of broadband devices

Omdia view

Orange France is a global leader with its program for the reuse and recycling of subscribers’ broadband customer premises equipment (CPE), such as its well-known Livebox range of devices. The reuse and recycling of broadband CPE forms part of Orange’s sustainability initiatives, which are closely linked to the company’s retail market differentiation strategy. The reuse and recycling program also brings important cost benefits to the operator. This article analyses Orange’s broadband device reuse and recycling strategy and looks at the success that it has achieved.

Orange’s CPE reuse and recycling program has involved careful organization and planning

Orange France has a well-established process for the repurposing of consumers’ broadband devices. The operator both reuses devices to supply to new broadband subscribers, and recycles those that cannot be used again, for example, because such devices cannot be repaired or are no longer part of Orange’s device portfolio for new customers.

The first stage of the CPE device reuse process is that operators must reclaim them from churning subscribers. Orange notes that it is able to reclaim more than 90% of such devices. Such high rates are enabled by the fact that Orange provides its Livebox devices to subscribers on loan. However, it is not possible to reuse CPE devices that are no longer offered by Orange to new customers. Nevertheless, Orange noted in 2022 that its Livebox gateways remained in the field for an average of more than seven years, so the chance of such a device being reused after a subscriber churns is high. Another case where Orange reclaims and tries to reuse broadband devices is in the case of equipment malfunction. It will also not be possible to repair all faulty devices, however, and in cases such as these, the devices can be sent for recycling rather than reuse. Overall, Orange notes that it is able to reuse around 1 million devices per year in France as a result of its program.

Orange works with a partner with factory facilities as part of its CPE reuse process. The partner can use its factory to repackage the devices Orange intends to reuse, as well as repair faulty devices. In terms of the devices that Orange sends for recycling, the plastic from the device goes to plastic recycling channels. Orange also ensures it works with partners that try to reuse the most valuable metal components from the CPE in other kinds of products.

Orange’s CPE reuse and recycling program delivers sustainability benefits and reduces purchasing requirements

Orange’s CPE reuse program is a part of the operator’s wider sustainability focus. Sustainability is a key strategic area for Orange. Orange commits to reducing by 45% its scope 1, 2, and 3 emissions by 45% by 2030 (from a 2020 base) and to reach Net Zero Carbon by 2040. Reusing ONT, and so reducing the need to manufacture new ONT, is a key lever to reach this goal.

The CPE reuse program that Orange has developed is also significant due to the fact that it reduces costs because it means the operator will need to purchase fewer new devices. The impact of Orange’s device reuse program on the number of devices it purchases is substantial. Based on conversations with operators, it should be possible to reuse more than 60% of the devices from churning subscribers. This is because these device models are still being offered to new subscribers. Overall, this means that Orange has an approximate ratio of 1.1 CPE devices being purchased for every 1 CPE device being used. This is a world-leading figure which reflects the success of the operator’s device reuse program.

Orange’s reuse of CPE devices also helps the operator generate significant cost savings. Omdia estimates that such savings could amount to several tens of millions of euros per year. It is also worth noting that the reuse process itself does have costs attached to it. Nevertheless, Orange is committed to its broadband device reuse strategy as long as it provides any level of cost savings at all.

Orange’s involvement in CPE design makes the reuse and recycling process more straightforward

Orange is well placed to develop a comprehensive program for the reuse of broadband CPE because the operator has invested in designing its own CPE. In order for operators to reuse their CPE, they need to work closely with vendor partners and make sure the process is permitted under their contractual arrangements. This process is easier for operators like Orange that design their own CPE. Orange also works with its CPE vendors so that the vendors commit to supplying replacement parts for CPE so they can be repaired. This situation is not mirrored across all other operators that have CPE reuse programs, and so the inclusion of repair of CPE devices in Orange’s program demonstrates its completeness.

Orange’s CPE device reuse program is one of many ways in which it differentiates itself with sustainability initiatives

Orange is vocal in noting that it has an in-home device reuse program, which demonstrates that the operator sees value in presenting its environmental credentials to subscribers. This is logical because a growing number of consumers see sustainability as an increasingly important factor in their purchasing decisions. There are also other areas where the operator notes the environmental credentials of its CPE. For example, Orange’s Livebox 5 device, which debuted in 2019, has a plastic shell that uses completely recycled material. This device also has fewer electronic components than its predecessors, a change which was enabled by Orange’s extensive FTTP rollout, which meant the Livebox 5 and subsequent devices no longer needed to also support DSL technologies.

Orange’s CPE device reuse program ties into some of the operator’s other sustainability initiatives. Orange has also demonstrated its commitment to the reuse of devices with its RE program for smartphones, which was launched in 2020. This involves Orange working with partners to provide a smartphone repair service as well as selling refurbished smartphones. In addition, Orange commits to buying consumers’ old smartphones, which will mostly be reused, but in case this is not possible, they will be recycled.

Conclusions

Orange in France has developed substantial expertise and experience in the reuse and recycling of broadband CPE devices. These initiatives deliver considerable sustainability benefits as well as significant cost savings for the operator. Orange’s broadband CPE device reuse and recycling program is also part of the operator’s broader plan to differentiate itself as an environmentally conscious company.

Appendix

Author

Stephen Wilson, Senior Principal Analyst, Broadband Access Intelligence Service

[email protected]