Wireless Retailer Diversifies To Add DSL To Stores, Web Site
By Joseph Palenchar -- TWICE, 12/6/1999
Retailer/e-tailer ephones.com, which recently changed its name from Totally Wireless, has begun selling DSL service as part of its repositioning as a specialist in wired and wireless communications.
The dealer is one of the first to begin offering broadband wireless access to consumers. One other is RadioShack, which began in the summer to sell DSL service in the Dallas/Fort Worth area and plans to expand sales to other markets. Another is New York's The Wiz, which began in recent months to sell cable modems for use in cable networks operated by parent company Cablevision.
The Fremont, Calif.-based retailer sells wireless and wired services and products through 19 West Coast stores and nationally through its Web site, which was launched during the summer. The DSL service is available in 32 metro markets and is sold through the Web and through all stores but one outlet in Salt Lake City.
A few months ago, the retailer added its first wired service, Qwest long distance, to its wireless roster, which includes cellular and PCS phones, pagers, wireless modems, and wireless data products such as Motorola's electronic organizer, which clips onto StarTac phones. Through the Web site, ephones offers wireless phone service from 44 carriers nationwide.
To offer DSL service, three competitive local exchange carriers (CLECs) are joining the service-provider roster: Covad, Northpoint and Rhythms Net Connections. Their service will be sold with a choice of Internet service providers (ISPs) such as Flashcom, IDT and Verio. Asymmetrical service will be available to consumers, and symmetrical service will be available to businesses that need high speed in both directions.
Ephones will resell the DSL services to consumers and share in the CLECs' revenue stream. Ephones doesn't resell wireless service but operates as an agent.
"Our charter is to offer a broad range of communications products," said CEO Mike Merrill. "We see high growth in DSL because we can add value by simplifying a confusing buying process." Right now, he said, "customers don't know where to go for this service ... the only place to get DSL has been through an ISP."
Ephone will give consumers a choice of DSL carriers and ISPs. In New York, for example, consumers can bundle Northpoint DSL service with ISP services from Flashcom, IDT or Verio, or consumers could opt for Covad service bundled with Flashcom.
Up to 18 pricing options for DSL service are available per market.
In a related effort, ephones launched a master dealer program in which other retailers can attach their own URL to a custom version of the epoint Web site, enabling them to market epoint's products and services throughout the country.
"We would be a master agent, and we would fulfill for the dealer," Merrill explained. "Whatever the stores don't sell, they can add our products, such as cellular modems, and when consumers order, the product can be shipped directly to the consumer [by us]."
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