RadioShack is expanding the scope of the products and services it offers. The company has long been selling handsets. And, it is now offering a wireless service of its own in collaboration with Leap’s Cricket Communications.
Essentially, RadioShack will hinge heavily on Cricket Communications for its wireless service which follow a hybrid mobile virtual network operator model. Rather than creating its own pricing and data plans, RadioShack will resell voice and data plans of Cricket under the RadioShack brand.
While this may sound a lot of dependence on Cricket, the upside for RadioShack is that it won’t have to sell all of Cricket handsets, but only a few of them.
At the same time, RadioShack will have exclusive rights on Huawei Mercury Ice smartphone for 30 days, as an initiation technique. The smartphone is poised to be offered for $150, together with a monthly no-contract plan of $50 or $60. The plan will offer unlimited voice and SMS. However, for $50, customers will get access to 1GB data plan whereas by paying the extra 10 bucks, the cap will be raised to 2.5 GB.
Among other devices that RadioShack wireless service will sell, there is yet another Huawei device – the Huawei Pillar phone. It is expected to arrive by the end of this month.
RadioShack can turn this new offering into a successful revenue stream, given the fact that it already has a fine standing in the market with its 4400 locations throughout the States.
Source: WSJ
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