Make the right decision for your broken or damaged telecom network equipment
When telecom network equipment gets damaged or breaks down, deciding whether to repair or replace it can often feel like an expensive guess, especially if you’re too busy to crunch the repair vs. replace cost-benefit numbers. But there’s no need to squander good money on a bad product. In fact, repairing items to keep them going as long as possible isn’t always the best way to save money.
What are the risks of repairing telecom network equipment?
Repairing broken or damaged telecom network equipment has three separate costs: figuring out what’s wrong, executing the fix and the cost of transport. Because repair typically involves many more unknowns than replacing, it’s entirely possible to exceed the cost of replacement solely in the problem discovery phase.
In addition to the risk that you will waste a lot of resources just figuring out what’s wrong, executing a fix has its own dangers. Certain repair operations can be extremely difficult to perform and may require a very long series of steps to be implemented perfectly. Most electronic equipment isn’t designed for easy repair and whenever you take something apart, there’s always a chance it won’t be able to be put back together again. Be aware that there may be a short warranty period for the repair work so remember to factor in potential future repairs when making your decision. This factored with long SLA times of up-to 60 days means that repair loses some of its benefits.
All of the above risks can be mitigated. Skill and experience can reduce the time needed to discover problems, aid in the execution of difficult repairs, and prevent the waste of materials like replacement parts. However, the above risks will still be present and can rear their ugly heads at any moment.
Consider the value of your time
Your time has a value that’s often overlooked when making the decision to repair or replace broken telecom network equipment. Consider how long you’ll spend finding a suitable repairer, obtaining quotes, seeking expenditure approval and how long you‘ll be without your items. You don’t want to be stuck in the position where your items are stuck in the bowels of a repair shop while you are kept waiting. After all, you could be without kit that’s critical for your network for months on end unless you have a backup. Your time is important—sometimes it’s worth considering which route will just save you the most time and let you get back to work as soon as possible.
Recapturing the cost of repairs when it’s time to sell
You may be extending the useful life of a product by having it fixed, but that investment won’t necessarily be recognised by buyers and returned to you later on. For example, in the case of used car sales, buyers won’t care what you’ve spent on the car in the past, they’re only concerned with what their money can buy them now. If the prevailing market price for a similar car is £4500, then that is where you’ll need to price yours if you want it to sell. The lesson here is that the market will limit your ability to recapture the cost of repairs when it’s time to sell. Whether it’s repairing a car or a piece of telecom network equipment, if you intend to resell it, no longer is the decision about the subjective value you receive from a successful repair, but rather about anticipating the future needs of buyers and the market conditions when it comes time to sell.
It’s still worth something even if it’s damaged or broken
Damaged, broken and obsolete telecom network equipment is not a waste product. If you choose to forgo repair, you can often receive something in exchange for a non-working system. That something is called the residual value, salvage value or scrap value; three terms that refer to the expected value at the end of the asset’s useful life. You can apply the value made by selling the item toward your next purchase, thereby reducing CAPEX by offsetting the revenue generated against new purchases.
Repair avoidance – get a better deal by replacing your damaged or broken telecom network equipment
In the end, you may find it’s far more cost effective and substantially quicker to replace your old telecom network equipment completely. Furthermore you can put the money you’d have spent repairing your equipment towards getting a replacement or upgrading to something more suited to your needs.
To get an even better deal you can buy replacement items from the green market
The green market is the distribution of refurbished, used, recycled, discontinued or new products that are in good working condition. They are sold through resellers such as TXO Systems, providing a lower cost and sustainable alternative to the standard distribution channels. The green market is a fantastic source for multi-vendor fixed/wireline & mobile/wireless telecoms parts from the latest generations through to legacy and end-of-life. Plus you may discover that items available from the green market are backed by a comprehensive warranty that you won’t get by repairing your old equipment. Just make sure you’re buying from a trustworthy company like TXO. You can read more about the green market here.
The general rule of thumb when it comes to repair or replace
As soon as you become aware of an issue with a product, contact the retailer you bought it from and tell them about the problem. If the product is under warranty, check the terms. If it is not covered by a warranty, before you decide to repair or replace, ask yourself:
- Why repair if it’s commercially preferable to replace?
- Have you got maximum visibility of your own stock?
- Would you like a self-funded purchasing solution to drive efficiency and cost savings?
TXO Systems is Europe’s largest used telecom network equipment de-installer, reseller and recycler. TXO support over 85 of the top 100 operators to extend the life of their legacy networks, monetise surplus assets and reduce OPEX by de-installing equipment freeing up expensive footprint or warehouse space.