Best Buy partners with Clearwire |
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Best Buy is getting into the broadband wireless business -- with the help of Kirkland-based Clearwire. The companies today announced a partnership by which the giant electronics retailer will utilize Clearwire's 4G network for a new service called Best Buy Connect. The service is slated to begin next year, and it marks the first time that Clearwire has inked a wholesale agreement with a company outside its group of strategic investors. (Including Comcast and Sprint).
"This agreement paves the way to providing one-stop shopping and support for mobile broadband as more people become more connected across all kinds of devices. We believe consumers will appreciate the added advantage of relying on Best Buy Connect for both 3G and 4G mobile broadband services beginning next year," said Jed Stillman, vice president of Best Buy Connect, in a statement.
Interestingly, Best Buy is working with another Seattle company in the mobile space. Yesterday, we reported on the new funding round for Dashwire, which is powering Best Buy's mobile backup service m:IQ. CEO Ford Davidson hinted that additional partnerships were in the works, and the company is backed by Trilogy Equity Partners which has deep ties at Clearwire.
Shares of Clearwire were down just over two percent today. CEO William Morrow tells Dow Jones that Best Buy will not get the same discounted wholesale rates as the company's strategic investors, though he said the retailer should still be able to hit a profit.
Clearwire has been especially bullish about its wholesale business, essentially turning over its WiMax network to third parties. During the first quarter, the company added 111,000 new wholesale subscribers.
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