Sprint Corp., Sprint Spectrum L.P. and RadioShack announced they are teaming up to provide one-stop shopping for all Sprint-branded products.
The companies have developed a “store-within-a-store” concept, whereby 15 percent of all RadioShack store floor spaces will be dedicated to Sprint products. Customers will have access to a full service communications information center that will offer Sprint Spectrum personal communications services, Sprint long-distance and local service, Internet access, paging, prepaid phone cards, phone sets and other services.
“Sprint has a strong brand equity, and this partnership extends that equity into the retail marketplace by putting Sprint’s products and services within five minutes reach of 94 percent of the population,” said Leonard Roberts, president of RadioShack and Tandy Corp., its parent. “We believe that Sprint and RadioShack will redefine how consumers deal with communications providers for the next century.”
For Sprint Spectrum, RadioShack’s 6,800 stores located nationwide, will complement its national rollout of personal communications services.
The company, an alliance of Sprint, Tele-Communications Inc., Comcast Corp. and Cox Communications, holds 32 major trading area licenses consisting of about 190 million pops.
“RadioShack will be the largest retail distribution channel for Sprint Spectrum and will be a key sales outlet for our nationwide launch along with sales through our partners and Sprint Spectrum retail stores,” said Andrew Sukawaty, chief executive officer of Sprint Spectrum.
Michael Elling, senior telecom analyst at Prudential Security Services Inc., said the agreement “slows the notion that the cellular guys have a head start in the retail market … One million people walk into RadioShack every day. The notion of bundling common services and the ability to make [the purchase] simple-all those things are important.” Most people wouldn’t buy a phone with the name RadioShack on it, but “if you slapped a Sprint brand on it, it would be great,” added Elling.
The announcement may spur competitive responses from AT&T Wireless Services Inc. and MCI Communications Corp., which plans to offer PCS services using NextWave Telecom Inc.’s network, Elling said.
“It has been a foregone conclusion that AT&T and Sprint will dominate in two years. AT&T had enormous reach with its brand. Sprint had cable partners involved with its marketing distribution. Sprint may well leapfrog AT&T.”
Under the 10-year agreement, RadioShack stores may not sell non-Sprint Spectrum PCS services in any market where the operator holds licenses. However, it may continue its relationships with cellular carriers.
“Basically, if Sprint offers it, we sell it. If they don’t, we can make our own determination on what products we market,” said John Roach, chairman and chief executive officer of Tandy. RadioShack also is prohibited from constructing “stores-within-a-store” with any other retailer.
RadioShack already sells Sprint Spectrum’s PCS handsets in the Washington, D.C./Baltimore area, where PCS service was launched in November.
