Customer concerns over data security are preventing telcos from properly capitalising on the opportunities presented by the second hand device market, a new report reveals

The global market in second hand smartphone handsets could be worth as much as $52.7 billion by the year 2022, according to a report by IDC

However, new research published by the Blancco Technology Group shows that fears over data security could be preventing consumers from trading in their own devices. The research revealed that 64 per cent of consumers reported that they would be more open to trading in their own device, or to purchasing a second-hand device from an operator, if more stringent data management processes were in place.

“The secondary mobile device market is a huge success story,” said Russ Ernst, EVP, Products & Technology, Blancco. 

“Each of its major stakeholders – operators, OEMS and 3PLs – have so much more value to extract from it as more global consumers choose to sell or buy used equipment if they trust in the process of used device collection and redistribution. Our study makes it clear, however, device collections will accelerate only if operators, OEMs and 3PLs remain fiercely committed to data management and device erasure best-practices.”

Blancco’s study, entitled “The Critical Importance of Consumer Trust in the Second-Hand Mobile Market,” analyses the need for telcos and network operators to invest in consumer trust, if the secondary mobile device market is to meet current expectations.

The report reveals that 66 per cent of respondents voiced concern that data on their old devices might be accessed or compromised after trade-in. In the wake of the Facebook and Cambridge Anaytica scandals, it behoves upon the global telecoms community to raise the levels of scrutiny surrounding data security.

If telcos and network operators are to take advantage of the growth forecast for second hand mobile handsets, they must invest in data security in order to buy back consumer trust. 

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