Best Buy targeting telecom?


The telecom rumor mill churned out a nifty one late last week: BroadbandReports stated that retail giant Best Buy was rumored to be exploring the possible acquisition of Covad Communications, according to what BR called a "Covad insider."

Whether or not the chatter results in a deal, it seems like Best Buy is developing some kind of telecom strategy. The retailer already acquired business DSL provider Speakeasy, so a Covad deal and a broader telecom play isn't out of the realm of possibility. Best Buy isn't the only telecom outsider supposedly eying the telecom industry. There's Google, of course, and some people are still betting firms like Apple and Amazon will add a telecom service aspect (though perhaps these are the same people who were betting on the Chicago Cubs to end their World Series drought this year).

The logic for Best Buy to do so seems a little more realistic--if it sells you the equipment for your home network or office network, maybe it can sell you the broadband or VoIP services, too. That's also the logic that some telecom outsiders used when they became mobile virtual network operators, which didn't turn out so well. But, some telecom markets, like SOHOs or small businesses, have yet to be dominated by existing carriers. Here's the Best Buy/Covad posting at BroadbandReports. -Dan

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