Cowboy Maloney’s: DISHnet Will Draw New Customers

Broadband service will reach underserved and rural consumers

John Maloney of Cowboy Maloney's Electric City believes the new DISHnet broadband service - aimed at underserved and rural consumers - that he and his brothers launched this week at their Jackson, Miss., retailer will help draw new customers.

Cowboy Maloney's recently dropped DirectTV to bring on DISH Network satellite TVand the broadband service. The decision, John Maloney said, was based on the lower entry price point for DISH Network ($19.99) and his company's relationship with DISH CEO Joe Clayton. In the past, Clayton had used the retailer to launch Sirius and DirectTV in the U.S..

"Joe's a great marketer and he's done so much for Cowboy Maloney's," Maloney said. "He understands us and what the independent dealers need to do to get the job done."

Clayton and Maloney agreed that the broadband service can help increase ARPU and decrease customer churn for retailers, especially when bundled with the DISH satellite service. Clayton pointed to a recent FCC report stating that 19 million Americans lack access to high-speed Internet, including 14.5 million who live in rural regions.

"There are millions of underserved customers who need this, so it's a big opportunity for independent dealers," Clayton said. "The costs are low, so it shouldn't be a hard sell. It's a ready-made market that has a need."

Maloney explained that outside of the Jackson area, many of the consumers his 12 stores serve are in rural markets that could use high-speed broadband. The service will particularly appeal to a younger clientele, he said (although the latency of the satellite service is not ideal for online gaming).

"This will help attract a new customer, a younger customer," Maloney said. "It will also be a good recurring revenue stream down the road."

DISHnet will be backed by a multi-million dollar print, radio, TV and online advertising campaign, Clayton said. POS materials, demo stands and other marketing collateral will be available to dealers.

When bundled with the DISH TV service, DISHnet will be priced at $39.99 per month for 5GB anytime data, 5GB bonus data, and 5mbps download and 1mbps upload speeds; $49.99 per month for 10GB anytime data, 10GB bonus data, and up to 10mbps download and 1 mbps upload speeds; and $69.99 per month for 15GB anytime data, 15GB bonus data, and up to 10mbps download and 2mbps upload speeds. The service includes data caps.