This is interesting. Any comments?
zdii.com
September 27, 2000 2:40pm
MS, RadioShack to offer DSL service
By Mary Jo Foley ZDNet News
NEW YORK -- Consumer-electronics retailer RadioShack Corp. announced Wednesday it will begin selling immediately Microsoft Corp.'s MSN-branded DSL service and, by the end of October, MSN's two-way broadband satellite Internet access service in its 5,800 RadioShack stores nationwide.
The deal marks a major milestone in the nearly year-old partnership between Microsoft's MSN division and the Fort Worth, Texas, retail chain, according to the two companies. Last year, RadioShack and Microsoft cemented a partnership to provide Microsoft products and related hardware and software inside RadioShack outlets and dealers through a "store within a store," in the form of Microsoft Internet Centers.
Microsoft's HighSpeed DSL service will cost $39.95 per month. RadioShack is offering a free modem and on-site installation as part of the package. NorthPoint and Verizon are the first two providers delivering the new broadband service. Installation will be provided by either RadioShack's own Amerlink installation arm or other third-party service providers acting as contractors to RadioShack.
No pricing information was available on the forthcoming HighSpeed broadband satellite service, which will be provided by StarBand Communications.
RadioShack will offer in-store customers who agree to provide their street addresses and phone numbers immediate online information regarding whether and when broadband connectivity will be available to them.
Microsoft did not discuss other retail broadband deals in the pipeline, but Microsoft officials confirmed a similar pact with RadioShack rival Best Buy is likely.
RadioShack: More than just batteries
"This (Microsoft broadband deal) positions us to be the first mass-market retailer of broadband in the nation," said Leonard Roberts, RadioShack chairman, president and CEO.
Roberts characterized RadioShack's announcement with Microsoft as an integral part of its five-year strategy to reposition itself as more than just a parts-accessories-batteries provider.
"Home connectivity is the next big opportunity, and Microsoft is our home connectivity partner," Roberts told financial analysts, press and other company officials attending the launch.
Roberts cited data from Forrester Research that found that 47 million U.S. households, or 52 percent of the households that will be online by 2004, will be relying on some type of broadband connection.
"They (U.S. households) want it (broadband) now, but they don't have a clue how," quipped Roberts.
MS: More broadband content on tap
"Broadband is increasingly important in terms of running a new set of services," said Rick Belluzzo, Microsoft group vice president of personal services and devices.
Belluzzo said Microsoft is building broadband-access readiness into all of its products.
For example, the Internet telephony feature that the company is building into MSN Messenger within Microsoft's MSN Explorer software, due out later this fall, will work best over a broadband connection.
Microsoft also is working on adding broadband-ready content to a number of its MSN properties, such as MSNBC, Expedia and Encarta (which will be enhanced with a broadband-optimized Learning Channel later this fall).
Belluzzo said that Microsoft currently has 3 million registered MSN Internet access subscribers and another 1 million WebTV Internet access subscribers. Of these, "very few" currently use broadband, he said.
RadioShack will continue to sell MSN dial-up service to customers not yet ready for broadband, and will continue its aggressive $400 RadioShack store shopping sprees as incentives to those who sign up.
Perry P. |
