PC World starts selling broadband

by Scott Bicheno on 30 June 2008, 11:59

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Getting with the programme

Giant computer retailer PC World has reacted to growing competition from Carphone Warehouse (CPW) by offering broadband, digital TV and, most tellingly, mobile broadband from today.

The new initiative is called Get Connected and has been created to service the market for broadband connectivity to desktops, laptops and TVs bought in store.

CPW, through its joint venture with US technology retail behemoth Best Buy, is threatening to open a number of large retail outlets specialising in connectivity next year. So PC World has six months or so to get its retaliation in first.

The UK computing division was culpable for a large chunk of the drop in parent company DSGi’s underlying profits, which were announced last week. Get Connected was pre-announced as being among the measures being undertaken to remedy the situation.

The mobile broadband element of Get Connected is likely to be the most critical as that is the area CPW is strongest in and is the product associated with eye-catching ‘free’ laptop offers.

As ever with hardware and telco contract bundles, a broad definition of ‘free’ is used. For example the BB Plus tariff is a modem only offer with a 3GB data allowance for £15 per month and a minimum contract length of 12 months. Whereas the BB Plus + 150 tariff throws in 150 text messages and £200 off all laptops for £30 per month and a minimum contract length of 18 months.

“Get Connected reflects customer demand for a complete, one-stop solution that provides a way for our customers to not only get a great deal on a laptop, but also get connected to the right service,” said Glenn Orchard, head of commercial development at PC World. “As the UK's leading laptop retailer we are uniquely placed to offer impartial advice and the widest possible choice of packages.”



HEXUS Forums :: 6 Comments

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Posted by DR - Mon 30 Jun 2008 12:33
Didn't DSG originally form Freeserve which they then sold off to Orange?
Posted by Scott B - Mon 30 Jun 2008 12:37
Wikipedia seems to back you up on that: http://en.wikipedia.org/wiki/Freeserve
Posted by DR - Mon 30 Jun 2008 12:46
Yep so they had a perfect oppotunity to actually stay in front of the curve with that and dominate the market - as we all remember freeserve grew.

For them to compete would be nothing but tricky - the purpose of reselling someone else's package? Yep you get a rebate each month but so much lower than what they could have had?

I am confused why someone steering this ship would end up pushing them towards stores rather than concentrating on their etail offering? Meaning they acknowledge people are going online all the time (and I suspect also know) to purchase products - so why not make their online offering a massive hit rather than just offering BB?
Posted by Scott B - Mon 30 Jun 2008 12:59
Yeah, its funny. According to Wikipedia DSGi made a ton of money from the IPO of Freeserve and was one of the pioneers of the “generate loads of traffic by giving stuff away and then sell ads against it” model.

You would expect DSGi to have thought “we want some more of that” and continued to innovate, but no.

Maybe the pure retail part was just too great a commitment.
Posted by Lucio - Mon 30 Jun 2008 14:40
It's basically “hassle free” money. Whilst they won't make as much cash as they did running Freeserve, they do get a healthy cheque each month for the sales without having to do any more support than “phone the 0870 number on the packet”.


What I don't get is what CPW is getting from the deal, there can't be that many people who don't have broadband yet, and of those would they really pick it up whilst in PC World? It doesn't seem much of a market….

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