WalMart Cellular????

[MSE Environmental]

Originally Posted by rancidhooligan

from Network World Fusion.com
Wal-Mart: Always low prices....for broadband?

Techdirt.com has some thoughts on the Intstitute for the Future's thoughts on whether Wal-Mart might deploy fixed wireless broadband base stations and become, in addition to everything else, a telecommunications company.

The idea is if a coffee shop can sell Internet access over Wi-Fi, why can't a discount chain sell broadband over WiMAX? There are some challenges, as Techdirt's Mike Masnick points out in this link: "If Wal-Mart aims for "everyday low broadband, telephone and video prices" it might find that maintenance and customer support costs are quite a pain," he writes.

The even worse pain is enduring that hugely annoying Rollback bouncing happyface on still more TV ads.

More...

Maintenance won't be a problem for WallyWorld. They'll hire people and pay them less than the going rate with less than average benefits for the priviledge of working for them.....

What will be interesting is to see if WalMart can bring their efficiencies to the communications world. So far they've been able to bring goods to market for less than any of the competition. Can they do it with services too?

My guess is that they probably can. These are smart people who don't go into anything blindly. If they can get enough ROI on it, they'll be all over it. Don't forget about the Arkansas ties....both WallyWorld and Alltel are based in Arkansas and share a common tie with the Stephens Inc investment bank. (Stephens brought WalMart and Alltel public, much of Alltel's top management came from Stephens, and the Stephens Family Trust owns, get this 10,000,000 (that's over 500 MILLON $) shares of Alltel) I could see WalMart branding an Alltel service as WalMart Cellular to avoid the pain of start-up capital investments.

[MOTOhooligan]

Originally Posted by MSE Environmental

I could see WalMart branding an Alltel service as WalMart Cellular to avoid the pain of start-up capital investments.

Me too but they would have to brand it with a name what wasn't Wal-Mart Cellular or Wal-tel or anything like that... think something dynamic with synergy

[Cingular GSM User]

Anymore Infromation on WalMart Cellular?

[MSE Environmental]

Originally Posted by Cingular GSM User

Anymore Infromation on WalMart Cellular?

No news from my source. I'll give him a buzz this weekend and see if there is any news.

[WirelessBeachBum]

Yes there is a very close tie to Alltel and Walmart. The wireless Kiosk that used to be in so many Walmarts were managed by Alltel. Even the locations that were not Alltel were still leased from Alltel.

The leases were for 10 years and were quite costly per square foot. I managed part of this program for a temporary period for Walmart, It was tough getting reps to work in those locations, however the pay was better than regular Alltel retail stores at the time. Over the past 5 years they had a real tough time keeping those little kiosk staffed. Many locations have pulled them as wireless has become more prevelant.

I don't see walmart trying to make a move to be a network operator, the profit margin is not that high. I could see them doing an MVNO, heck even ESPN is going to be an MVNO...I find that to be just sick. I like sports and all, but would I by an ESPN phone....heck no.

[MSE Environmental]

Originally Posted by WirelessBeachBum

Yes there is a very close tie to Alltel and Walmart. The wireless Kiosk that used to be in so many Walmarts were managed by Alltel. Even the locations that were not Alltel were still leased from Alltel.

The leases were for 10 years and were quite costly per square foot. I managed part of this program for a temporary period for Walmart, It was tough getting reps to work in those locations, however the pay was better than regular Alltel retail stores at the time. Over the past 5 years they had a real tough time keeping those little kiosk staffed. Many locations have pulled them as wireless has become more prevelant.

I don't see walmart trying to make a move to be a network operator, the profit margin is not that high. I could see them doing an MVNO, heck even ESPN is going to be an MVNO...I find that to be just sick. I like sports and all, but would I by an ESPN phone....heck no.

I know exactly what you were talking about. I used to work for a company that put kiosks for insurance products inside of Sam's Clubs. We were told by Sam's management that we were renting some of the most valuable real estate in the country: floor space that could be used to stack stuff that Sam's could sell.

WalMart will first and foremost make sure they have an acceptable ROI on their entry into the wireless business. (If they do brand their own). Unfortuately WalMart can't buy wireless infastructure from sweat shops in Bangladesh or China, so it might be hard to hit their margin targets dealing with existing infrastructures.

Just my $.02.....