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Compaq, Microsoft And RadioShack Form ISP Partnership

Compaq, Microsoft and RadioShack have formed a new ISP alliance.

Under a three-year agreement, Compaq will pre-install a tri-branded web portal on RadioShack-exclusive Presario models that allows consumers to buy Internet access from MSN or the recently announced Compaq.Net, which is powered by MSN.

The new site, which is being previewed at presario.compaq.net, will also feature links to consumer-oriented Compaq, RadioShack and MSN support web sites offering technology updates, upgrades and special promotions.

According to the partners, the deal will enable each company to share in recurring “Internet revenue opportunities,” conduct joint marketing and advertising campaigns and increase the attach rate of MSN to the Presario Learning Series models sold through RadioShack.

“This agreement creates a seamless experience for our customers and plays an integral part in our collective business strategies,” said RadioShack executive VP David Edmondson. Added Compaq senior VP Mike Larson, “This merging of specializations between the three powerhouses enables us to collectively offer our customers a complete and superior on-line solution.”

Although the three-way deal is a first for RadioShack, the chain has existing agreements with Compaq and Microsoft for in-store shops. Microsoft also holds a $100 million stake in RadioShack.com.

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