& Resale of Pre-Owned Network, Switching & Transmission Equipment

BACKGROUND

Established in 2005, Lynx supports the management of carrier networks through rationalisation and reduction, and the generation of revenue for clients from unwanted assets.

Based in Andover, Hampshire we have 55,000 sq. ft. office & Warehousing and employ 30+ staff

– Background to Telecom Networks– Impact of Network Changes– Responsibilities– Lynx Solution for network Operators– Environmental Impact of Reusing Equipment– Lynx’s Business Model– Case studies– Summary

Agenda

– Acquisition • Telecommunications and broadcast technologies were

a state monopoly until 1983• Post Office Telecommunications became the

privatised in 1982 and became BT• Subsequent network operators with trunking

infrastructure included Level 3 Communications, Virgin Media, Cable & Wireless, Easynet and Thus.

• Cable and Wireless acquired a number of networks such as Your Communications and were acquired by Vodafone in 2013

– Technological Advances• From original Voice and broad cast offering of the

GPO to fibre optic and Digital Trunking• Introduction of the Mobile Networks through First,

second third and now fourth generation• Operators including O2, Vodafone and EE (previously

Orange – T Mobile)

Background to Telecom Networks in the UK

– Network Rationalisations• Closures• Moves• Upgrades

– Customer Ceases• Through contract churn between operators

– Release of large volumes of Telecoms equipment• Switching• Transmission• Access Nodes• Network Spares

Impact of changes

– Legislation• Waste Electrical and Electronic Equipment (WEEE) and Restriction of

Hazardous Substances in electrical and electronic equipment (RoHS) directives aim to reduce he quantity of waste from electrical and electronic and increase its re-use, recovery and recycling

– Responsibilities• Producers/OEMs who launched the product on the market place must

take responsibility for the disposal of EEE• Have to join a compliance scheme through which they are charged on

the volumes of redundant equipment generated

– Problems for Network Operators• Equipment lifecycle• Multi Vendor• Cost and effort in tracking assets to original supplier

Responsibilities

Lynx’s Solution for Network operators

Lynx Works with Network Operators in the management of their unwanted assets through:

• Recovering all equipment as potential resale rather than waste

• Assessing all equipment for commercial value, then either• Returning assets to the client for support of

their legacy networks• Reselling assets to other network operators• Recycling components with no commercial

resale value e.g. Cable, batteries, Steels• Generating revenues and cost savings accordingly

ENVIRONMENTAL IMPACT OF REUSE

– Studies into the environmental impact of using re-manufacturered (Reused) parts rather than newly manufactured parts [Ref.1] have shown the following:

– The overall Global Warming Potential in terms of Kg of carbon dioxide equivalent shows a reduction of 30 -44% across technologies

– Ozone Layer Depletion Potential [Kg R11 – Equivalent] reductions of up to 46%

– Additionally, where the decision to use re-manufactured equipment eliminated the need to manufacture new replacements parts, the overall reduction in GWP could double to 88%

Ref[1] Lifecycle Assessment of the Environmental Benefits of Remanufactured Product within a “Green” Supply Chain: Charles L. Goldey, Ernst-Ulrich Kuester, Renee Mummert, Thomas A. Okrasinski, P.E.Donald Olsen, and William J. Scheffer, Sr.,P.E. [ IEEE International Symposium on Systems and Technology, Washington DC May 2010]

LYNX BUSINESS MODEL

• Acquisition– predominantly in UK and Europe due to the

technologically advanced state of the market

• Resale– Into UK/European/ROW market for

• Maintenance and support • Network extension/rationalisation

• Operation– Dynamic to meet clients’ needs

WHY USE LYNX?

• Knowledge– Expert asset management & valuations– Technical knowledge and market awareness

• Honesty– Open book – Title and audit trail

• Range of services – installs, de-installs, spares maintenance, resale and

disposals• Quality of Equipment

– Expert handling of assets ensures maximum revenue

• Approvals– Business is ISO9001 & ISO14001 certified by SGS (UKAS)– Safe Contractor Approved for H&S– Environment Agency License for handling WEEE– Hazardous Waste License for handling batteries/etc– Waste Carriers License– Waste Brokers License

ASSET MANAGEMENT FEATURES & CLIENT BENEFITS

• Features– Trace and track facility for all inventory items through on-line

portal and dashboard– Recycle reports to demonstrate green credentials– Open book for revenue share projects

• Benefits– Reduce environmental responsibility and liability– Release value from redundant assets– Cost of stock rationalisation and disposal covered and

exceeded by income generated

LYNX RE-SALELynx has 550+ clients including

Network Operators, Re-sellers, OEMsInventory

> 10,514 Line Items across a variety of platforms> 150,000 individual parts in stock

Quality Service<0.05% Returns Rate, Audit trail of stock movements/reports/Duty of CareBusiness is ISO9001, ISO14000, WEEE, Safe ContractorFully certified sub contractors

ResponsiveRapid response, same day dispatch on >90% of all orders for in stock items

Flexible:Cards to systems Packages to containers

International Business:UKTI Passport to Export approvedDeliver to clients in EMEA, USA, Canada, South America, Russia, China

CASE STUDY 1: DE-INSTALLATION BEFORE….Telecom Datacentre

DURING….

Telecom Datacentre

AFTER….

Telecom Datacentre

PROJECT SUMMARY

17%

6%

11%

0%0%

1%

0%7%

59%

Total Disposition by Weight

LOW GRADE CABLEHIGH GRADE CABLESTEELBRIGHT COPPERCONNECTORSFIBREPLASTICWOODRESALE

– 467 LLU sites re-engineered/recovered

– Management of Excess Assets

– UK & European Switch rationalisation project

– Site Closure Projects

– Customer ceases – national collections

– Cost neutral to client across all projects plus revenue return

Case Study 2: Network Operator Client Contract

Client Inventory

• >100,000 items collected and inventoried

• 5000 items returned to client for re-use in their network

• Resold 38,000 items worldwide

• Recycled 266 Tonnes of materials for precious metal recovery

Summary

By working with Network Operators to manage their legacy networks Lynx can:

• Reduce Network Operator’s liabilities with regard to WEEE

• Provide engineering support for non-revenue generating projects

• Generate Revenues from Resale/recycle

• Reduce contribution to Global Warming through the reuse of existing equipment