Created by Bamboo Mobile, a Division of

March 2014

Reuse and Recycling: Buy Back and Trade-in Program Assessment and Ranking

Executive Summary

Mobile buyback/trade-in program ranking & assessment

Table of Contents

Introduction 4-6

Carrier overview 7-8

In-store assessment and ranking 9-19

Online assessment and ranking 20-28

Overall carrier scoring and ranking 29-31

Retailer assessment 32-38

Retailer scoring and ranking 39-41

Online assessment 42-50

Online scoring and ranking 51-53

Rankings All and Final Thoughts 54-56

Methodology and Definitions 57-60

About Us 61-62

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Executive Summary

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3 INTRODUCTION AND OVERVIEW

REUSE AND RECYCLING

Introduction

• We are happy to present our 3rd annual Mobile Device Trade- in/ Buyback Ranking and Program Assessment report.

• This report examines (and scores) several of the trade in or buyback programs in the industry and provides an assessment and rankings for each program. The report highlights three categories:

• Carrier Rankings (in-store, online and overall)

• Companies include: AT&T, Sprint, T-Mobile, US Cellular and Verizon

• In-Store (Retail) Rankings (excluding carriers)

• Companies include: Apple, Best Buy, ecoATM, Target and Walmart

• Online Rankings (excluding carriers)

• Companies include: Amazon, Best Buy, Gazelle, Target and Walmart

• The reuse and recycling market continues to become an integral part of the mobile ecosystem.

• The process is good for carriers in that they can re-use “gently-owned” phones for their warranty/insurance or prepaid/MVNO partners.

• Carriers and other recommerce vendors can also resell these used devices to secondary markets where used iPhones (and other devices) are a hot commodity.

• Customers also like getting a little money in their pocket while doing something good for the environment as well.

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Executive Summary

2013: A busy year for reuse and recycling

Device Renewal Forum announces an official standard for renewing devices (Feb)

Baltimore City Council bans ecoATM kiosks (Sept)

Standards & Regulatory

eRecyclingCorps recycles 1.1M devices in the month (May)

Gazelle said it reached the $100M milestone in device payouts (June)

Sprint breaks GUINNESS WORLD RECORDS® Record for the Most Cell Phones Recycled in One Week (Sept)

Reporting

eRecyclingCorps raises $8M in financing (Jan) and another $105M in Oct.

Outer Wall acquires ecoATM (July)

Softbank agrees to pay $1.26B for a 57% stake in Brightstar (Oct)

M&A & Funding

CEA reported a 27% increase in US electronics recycling (May)

Gazelle announced it would add 438 new jobs in Kentucky (June)

Miscellaneous

July : T-Mobile (Jump!) and AT&T (Next) launch early

upgrade (and trade-in) programs

Aug : Verizon unveils Edge, an early upgrade/

trade-in program

Aug : Apple launches in-store iPhone trade in

program

Sept :Walmart launches in-store

smartphone trade in program

Sept: Sprint launches its early

upgrade program, One Up

(and cancels it soon after)

Sept: Microsoft launches

smartphone/ tablet in-store

trade in program

Oct : Walmart expands trade-in

program to include tablets

Jan 2014: Staples launches

electronics buyback program

New In-Store Programs and Updated Trade in Programs hit the Market in 2013

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Executive Summary

Companies examined and ranked for this report

Carrier Ranking (in-store, online

and overall) & Assessment

Retailer Ranking & Assessment

Online Ranking & Assessment

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Executive Summary

METHODOLOGY AND DEFINITIONS

REUSE AND RECYCLING

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Research Methodology

Methodology and Approach: Our rankings are derived from detailed examination of several levels of information to offer a ranking based on what is best for the customers, the vendors, the environment and industry. These three data sets for the ranking include:

• In-store program capabilities, online program capabilities; user feedback and survey information and market impact and analysis.

• Market Impact could include promotions, partnerships, mystery shopping, unique product improvements and achievements in the market. A portion of user experience and mystery shopping occurred in mid 3Q13 and 1Q14.

• Scoring ranged from -.25 to +.5 per line items included in the scoring model (process, incentives, market impact (promotions, partnerships), user feedback). For user feedback, scoring is based on survey results based on percentages. The survey involved 1300 end users who had recycled or sold back a used device in the past.

• For the carrier in-store and online scoring, we weighted program capabilities 200%; user feedback 150%; and market impact 100%. For overall carrier scoring, we weighted in-store program capabilities 200%; online program capabilities 150%; user feedback 150% ; and market impact 100%.

Sources: Bamboo Mobile uses several types of sources, including information provided by the vendor, questionnaires and briefings. Other sources include the program Terms and Conditions, vendor and carrier websites and sustainability reports. We also use other secondary research, government data and statistics (e.g. CTIA, EPA, FCC, Bureau of Labor Statistics and US Census Bureau), primary research, vendor-based research and in-depth interviews with key decision-makers, where relevant.

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Executive Summary

Sources: Program Terms and Conditions

Company Link to T&Cs

Amazon http://www.amazon.com/gp/help/customer/display.html/ref=hp_left_v4_sib?ie=UTF8&nodeId=200302940 https://www.amazon.com/gp/help/customer/display.html/ref=hp_200302940_eligible?nodeId=200302930&#eligible

Apple http://store.apple.com/us/browse/reuse_and_recycle this is for the online program only--pop up box-need to click on terms

AT&T https://tradein-program.att.com/home.php5?c=en-us pop up window--need to click on terms

Best Buy http://tradein.bestbuy.com/client/#/terms-and-conditions

ecoATM http://www.ecoatm.com/terms-and-conditions/

Gazelle http://www.gazelle.com/service_terms

Sprint https://secure.sprintbuyback.com/cns/select pop up window--need to click on terms

Target http://www.targettradeinprogram.com/terms/

T-Mobile http://www.t-mobile.com/Templates/Popup.aspx?PAsset=Ftr_Ftr_TermsAndConditions&print=true

US Cellular http://uscellular.cexchange.com/online/Contact/ShowTerms.rails

Verizon https://www.trade-in.vzw.com/home.php5?c=en-us

Walmart http://walmart.cexchange.com/Online/TermsAndConditions/ShowTerms.rails

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Definitions

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Device Trade-ins—Process where a customer upgrades to a new device and the carrier or

retailer buys the old device back. Usually with a retailer or carrier. Payouts vary.

End of life Recycling—Stores often have drop off boxes set up for customers to simply drop an old phone into—these often have little or no value

but get recycled via proper channels.

Device Buy Back—Process in which a customer sells back a device that has monetary value. Buy backs are done via carriers, recommerce vendors

and retailers. Payouts vary.

Recycling—Often reserved for those devices that do not have value, cell phone recycling programs collect idle and end of life devices and ensures

they are recycled properly.

Recycling Kiosk---An automated teller machine that allows an end user to sell back a mobile device without human interaction. In many cases, customers receive cash for their old

phones. ecoATM is an example.

Retailer—Big Box or 3rd Party retail stores now have mobile stores within them. For this report, our retailers were Best Buy, RadioShack, Target

and Wal-Mart.

Carrier— A mobile network operator or wireless provider, these companies own and operate networks and bill the customer for services

either upfront or monthly.

Recommerce—Vendors that buy and often resell goods and services. For instance, Gazelle, eBay,

ecoATM and others would be considered recommerce.

Executive Summary

About Bamboo Mobile

• At Bamboo Mobile, we are building a strong foundation for those companies in the mobile industry that seek insights and information focused on eco-friendly efforts in the industry. • Device reuse and recycling, green packaging and devices with the goal of aiding

the industry in creating a stronger and more resourceful mobile world are a few examples of our key topic focus.

• At Bamboo we strive to: • Provide insights that enable companies to achieve their eco-centered goals. • Research and analyze topics associated with green mobility issues. • Offer an advertising and vendor education platform via out platform.

• For more information, please contact

Kate Pearce kpearce@compassintelligence.com Ph: 913.219.6477

• Or Visit Bamboo Mobile at www.bamboo-mobile.com

In real life application, bamboo is renewable, biodegradable and supports local economies. In Chinese culture, bamboo is revered and considered a symbol of longevity and good luck.

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About Compass Intelligence

• Founded in June of 2005, Compass Intelligence - a decision analytics research and consulting firm - redefines market intelligence and consulting.

• We have more than two decades of experience guiding business decisions using in-depth segmentation research that leverages creative, unique, and dependable methodologies.

• Our services include strategy acceleration, consulting and ideation services, market segmentation, market research/intelligence, and competitive analysis.

• 6 research track areas including Mobility/Wireless, M2M/IoT, Digital/Online Customer Experience, Bamboo Mobile, Emerging Technology, and Thought Leaders Research.

• Our focus is to provide individual decision analytics to clients while simplifying the research procurement process.

• Compass Intelligence became a certified Woman-owned business in December of 2009.

• To find out more, please visit our site at www.compassintelligence.com

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