Case Study

Revolutionizing Asset Recovery: PICS Telecom’s Strategic Resale of ASR9000 Equipment

Client: A prominent Tier One Operator in the Middle East

Situation

In the dynamic telecommunications landscape, a prominent Tier One Operator in the Middle East faced a significant challenge with the disposition of surplus Cisco IP network equipment, including ASR9000 and ASR-903 models. The challenge was to recover maximum value from these assets while promoting sustainability and efficiency.

The client’s surplus Cisco equipment was being undervalued by potential buyers, with offers barely exceeding scrap value. Furthermore, most offers targeted only the high-value line modules, neglecting the full scope of the inventory. This approach threatened to leave the operator with obsolete equipment, resulting in financial loss and storage inefficiencies.

Challenge

The primary challenges faced by the operator included:

1. Suboptimal offers that did not reflect the true value of the complete inventory.
2. The risk of significant residual inventory, leading to storage and management issues.
3. The need for a sustainable, environmentally friendly solution for disposing of surplus equipment.

Solution

PICS Telecom stepped in to address these challenges with a comprehensive, circular economy-based solution. The strategy involved:

1. Centralizing the surplus equipment within the country for thorough assessment and serialization, ensuring a clear understanding of the available assets.
2. Professional packaging and secure shipping of the equipment to PICS Telecom’s EMEA Headquarters in Bristol, adhering to the highest standards of logistics and data security.
3. Utilizing PICS Telecom’s extensive global network to remarket and resell the equipment, reaching potential buyers across the Americas, Europe, and APAC.

Results

1. Revenue generation: The operator realized over $4 million in sales from the surplus equipment over 2 years, exceeding initial scrap value offers.
2. Efficient asset utilization: The comprehensive resale approach ensured that the full inventory was utilized, avoiding unnecessary waste.
3. Alignment with CSR goals: The operator benefited from PICS Telecom’s efficient, secure, and environmentally responsible asset recovery process, enhancing their corporate sustainability profile.

Conclusion

PICS Telecom’s expertise in circular economy solutions transformed a potential loss into a substantial gain for the Middle Eastern Tier One Operator. By leveraging strategic serialization, global remarketing, and a commitment to sustainability, PICS Telecom not only maximized the residual value of the surplus Cisco equipment but also reinforced the operator’s commitment to environmental responsibility. This case exemplifies how PICS Telecom continues to bring technology full circle, delivering economic, environmental, and operational benefits to its clients worldwide.