Cellular launches market for redundant telecom assets

A new market for trading redundant telecoms equipment is to be launched this week by Cellular Asset Management. It will enable network operators in developing countries to buy equipment and build telecoms infrastructure projects much cheaper than if they were investing from new.

A new market for trading redundant telecoms equipment is to be launched this week by Cellular Asset Management. It will enable network operators in developing countries to buy equipment and build telecoms infrastructure projects much cheaper than if they were investing from new.

David Pearson, the company's founder, said: "There is a growing mountain of these redundant assets that we estimate could be worth more than £15bn depreciating in warehouses."

The assets include equipment that is inactive because it has never been used or is under utilised, as well as redundant equipment that has been replaced but is still in good working order. "There is a latent demand for these unused assets from operators in developing countries. Using our market they will have the opportunity to build up networks at a far lower cost than if they were to build them from new," he said.

The exchange will be organised online through the Celluar Assets' website. It hopes to persuade established network operators, such as BT Group, to sell equipment and earn additional revenue. The exchange will trade both mobile and fixed-line equipment.