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R’Shack Taps AT&T For In-Home Services

By Alan Wolf -- TWICE, 9/21/2009

RadioShack has enlisted AT&T’s ConnecTech services unit to provide its customers with home installation and remote IT support.

The services, which include TV and home-theater installation, PC setup and support, and home-network installation, are available nationwide to both RadioShack’s AT&T and non-AT&T customers.

The carrier launched ConnecTech last year to tap into the estimated $1 billion home-services marketplace, and offers its menu directly to consumers at http://connectech.att.com. The new agreement with RadioShack is believed to be its first retail contract.

At an investor conference, RadioShack CEO Julian Day said it “made a great deal of sense” financially to outsource its service function rather than develop an in-house operation, which would face high fixed costs but variable call volume (see p. 6). He said RadioShack will receive a portion of the service fees in return for its referrals.

Customers can choose from several levels of in-home support, often available with next-day appointments. ConnecTech’s service menu includes wireless-home-network installation from $119, basic TV and home-theater installation from $149 and in-home PC support from $179.

In a statement, RadioShack executive VP and general merchandising manager Peter Whitsett said: “It’s a highly mobile world and consumer choices are becoming more complex every day, so it’s a natural fit to offer a wide range of support services both in the stores and in their homes.”

Added AT&T’s consumer home services VP Randy Feger: “Our services are tailored perfectly for RadioShack’s connected, digital customers. Now they can save time and start enjoying their new technology right away with convenient and affordable support.”

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