AT&T Turns to Retail Channels for U-Verse
AT&T plans to sell its triple-play U-Verse services through more than 600 Circuit City and Wal-Mart retail stores beginning this month. There are a few things about this plan that just don’t make sense. First, the choice of stores, namely the floundering Circuit City is perplexing. Why not a more successful electronics retailer such as Best Buy, which already is stocking the iPhone, and working to sell other services contracts?
The other odd thing about this announcement is the idea that consumers will go to a retail location to learn about their broadband, voice and video services rather than through a traditional television, mailing or online ad campaign. Essentially this is another form of advertising, that has the potential to be more interactive than others, which could be a good thing given the current cable attack ads around HD channel delivery, and what qualifies as a fiber network. However, the strategy looks expensive, and seems to indicate that AT&T is having a hard time signing up the 1 million U-Verse subscribers it says it will have by the end of the year.

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