From MVNO to phone distributor: how Detroit’s SF Cellular became a powerhouse in the secondary mobile industry

SecondaryMarket.news: Could you provide us with some insights into the history of SF Cellular, including the key milestones and developments since its inception? When exactly was the company founded, and what was the original vision behind it?

SF Cellular/Alex Marouf: Absolutely. SF Cellular, or SFC as we often call it, was founded back in 1998. Initially, the company launched as a Master Agent Distributor , which was a relatively innovative model at the time. As the industry evolved, so did we. Over the years, we transitioned into mobile phone distribution—a pivot that allowed us to scale and refine our operations in response to market demand.

There have been many milestones in our 27-year journey, but one of the most significant was becoming an authorized Verizon buyer. This partnership has enabled us to purchase large volumes of devices directly from the carrier and offer high-quality products at competitive prices. It also helped sharpen our focus on serving other MVNOs, insurance companies, regional carriers, and online platforms. Beyond business growth, we’re also deeply committed to giving back to our local community here in Detroit.

SecondaryMarket.news: What is the current size of your workforce, and how has your team evolved over time in terms of growth and expertise?

SF Cellular/Alex Marouf: We currently have around 55 employees. What we’re most proud of, however, is our employee retention rate. On average, each team member has been with us for about seven years, which is quite rare in this industry. We’ve cultivated a supportive, welcoming culture that encourages people to grow with the company. That sense of stability and loyalty has been a huge factor in our continued success.

SecondaryMarket.news: What are the key differentiators that set SF Cellular apart from other players in the secondary mobile device market?

SF Cellular/Alex Marouf: Great question. One of the biggest differentiators is our direct access to all three of the major U.S. carriers—especially Verizon. That gives us the ability to source large volumes of inventory on demand and often at more favorable pricing than many of our competitors.

Another cornerstone of our business is integrity. We’re firm believers in doing what we say and saying what we do. That kind of consistency builds trust with our partners. We're also highly adaptable. Whether a company is large or small, we can tailor our services and products to meet their specific needs.

SecondaryMarket.news: On average, how many devices does SF Cellular handle each month? And can you tell us more about your facilities?

SF Cellular/Alex Marouf: We currently process about 90,000 mobile devices per month, which adds up to over a million units annually. Our facility spans 20,000 square feet, designed to efficiently manage that volume while maintaining high standards of quality control and device handling. While we haven’t recently expanded the space, we continually invest in optimizing our operational processes and equipment to keep pace with demand.

SecondaryMarket.news: Can you share some insight into SF Cellular’s revenue growth over recent years? How has your financial performance evolved as the secondary market has changed?

SF Cellular/Alex Marouf: Our revenue has shown consistent year-over-year growth. A few years ago, we made a strategic shift in our business model: instead of focusing on high margins per unit, we opted for lower margins and higher volumes. The idea was to help our partners grow by offering better pricing—and in return, grow with them. That decision has paid off, both in terms of revenue and long-term relationships.

SecondaryMarket.news: Being headquartered in Detroit, a city traditionally associated with the automotive industry, how has your location influenced your business? Are there any specific advantages?

SF Cellular/Alex Marouf: Detroit has been a great home for us. While it's best known as the automotive capital, it’s also strategically located—central enough to offer efficient logistics to customers across the U.S. Moreover, there aren’t many secondary mobile device distributors of our size and experience in the Midwest, let alone in Michigan. That gives us a bit of a competitive edge in regional operations and access.

SecondaryMarket.news: What does your typical customer profile look like? Are you focused more on B2B, B2C, or a mix of both?

SF Cellular/Alex Marouf: While we do have a small online presence for B2C sales, the core of our business is firmly B2B. That includes wholesalers, MVNOs, insurance companies, and regional carriers. These relationships form the backbone of our operations. We thrive in those partnerships where we can offer real value through pricing, reliability, and flexibility.

SecondaryMarket.news: Does SF Cellular exclusively deal with used devices, or do you also offer refurbished or new inventory? And what does your brand mix look like?

SF Cellular/Alex Marouf: Our primary focus is on used mobile devices. That said, we don’t limit ourselves to just one brand. While over 70% of our inventory consists of Apple iPhones, we also offer a broad mix of devices from Samsung, Google, Motorola, and others. We don’t currently deal in new or certified refurbished products—used is where our expertise lies, and it allows us to deliver the best value to our customers.

SecondaryMarket.news: Where do you primarily source your devices from? Are they mostly acquired through trade-in programs, partnerships, or other channels?

SF Cellular/Alex Marouf: The vast majority of our inventory comes from trade-in devices sourced directly from the three major U.S. carriers. These partnerships are key to maintaining a consistent and high-quality supply. We occasionally explore other sourcing avenues, but the bulk comes through those established relationships.

SecondaryMarket.news: Can you elaborate on the certifications SF Cellular holds and how they reflect your commitment to quality and responsible practices?

SF Cellular/Alex Marouf: Certainly. SF Cellular is certified under ISO 9001 for Quality Management, ISO 14001 for Environmental Management, and ISO 45001 for Occupational Health and Safety Management. These certifications aren’t just for show—they reflect how seriously we take our responsibilities as a business. ISO 9001 ensures that our internal processes remain consistent, customer-focused, and continuously improving. ISO 14001 guides our efforts to minimize environmental impact through responsible sourcing, recycling, and waste management. ISO 45001 underscores our commitment to providing a safe and healthy workplace for all employees.

While we are no longer R2 certified—mainly because most of our vendors no longer require it—we continue to follow many of its core principles. This includes secure data sanitization, responsible downstream handling of materials, and regular audits to ensure compliance with high industry standards.

Conclusion

As SF Cellular looks to the future, it is clear that the company’s growth is not just a product of smart strategy, it is a reflection of its commitment to integrity, adaptability, and long-term partnerships. With strong carrier relationships, a loyal workforce, and a clear operational focus, SFC remains a standout player in the evolving secondary mobile market.