The day after Christmas I was driving south from central Oregon on my way to Mount Shasta...

I stopped by the Klamath Falls RadioShack store. K Falls is a small community of about 20 thousand people just north of the California-Oregon border. They only have one RadioShack store but eight people in different parts of town were able to point me in the right direction.

I asked the friendly staff if they had any Skype stuff. I had to spell it ("s-k-y-p-e") and they looked it up on the computer, pointing to a U.S. Cellular display on the right.

Looking a little closer, wading through mobiles and accessories, ...

I found five shiny foil bags.

No other Skype merchandise with the Skype gift packs, now back up to their MSRP of US$9.99. Was told there was a phone that worked with Skype over in the networking section...

with the LAN and wifi gear.

It was the VoIP Voice CyberphoneK, decorated with the Skype Certified logo. Just one of the four Skype cobranded products stocked by RadioShack.

I've had similar experiences in smaller and larger RadioShack stores in California. It's hard to launch a new category and brand, especially with seasonal staff and the holiday sales frenzy. Two months in, most RadioShack employees don't have much (any?) Skype brand awareness, talking points, or merchandising direction. Assuming sales were adequate this month, Skype wil stick around and this will change.

RadioShack is a great place for Skype to start retailing in the United States. Only Wal-Mart sells more (38% of "mobile phones sold in major U.S. retail outlets and consumer electronic stories in the last six months") than RadioShack (28%). While the carrier-owned stores sell nearly half of all mobile phones, their customer satisfaction is horrible (24% positive). Good experiences at RadioShack should make it easier for Skype to open doors at other retailers, all of whom will be at CES next week. See you there.

• Tom Online comes to Skype's aid in China (ChinaTechNews.com). Skype's closest partner in China is negotiating with China's telcom operators on Skype's behalf.
• US Verso Tech confirms sale of Skype-blocking software in China (Forbes). How do you say "negotiating power" in Mandarin?
• Microsoft roars into VoIP market (Computerworld). "Industry observers say the catalyst for this is Skype..."
• Radio Shack to offer a range of Skype-related Products (The New York Times). Skype to be featured in holiday catalogs and displayed in stores with special "kiosks."
• ETel: Makers Wanted! (O'Reilly Radar Blog) "...looking for participants in the ETel Fair at our Emerging Telephony conference (conference is Jan 24-26, San Francisco; Fair is the evening of the 25th)".

Thanks to contributor Rick Hultz,a telecom and technology analyst who has followed Skype since it's beginning.

Skype Technologies products were sold today in United States RadioShacks for the first time. The Skype Trial Pack comes with planograms placing it with computer or wireless products, depending on the store layout. It is going to 3500 of RadioShack's 7,000 stores. Not in the rollout: smaller stores, those in Canada and Mexico, and some locations where sales were thought less likely. If it's not available near you, RadioShack.com is selling the Trial Pack online for $9.99.

A RadioShack spokesperson said store managers and customer service staff have been trained on what Skype is, what the Trial Pack does, and why people should buy it. A few quick calls to stores asking if they had the product drove most to look it up in their computer (tip: ask for Catalog # 43-3610). Before Christmas, they are on sale in stores for $4.99.

Skype-certified Motorolla, Linksys, Logitech, and VoIPVoice handsets and headsets are also selling through RadioShack's online and in stores. Skype earns a royalty or licence fee for each certified product sold. Is the Trial Pack would be intended as an impulse buy and to draw attention to more expensive Skype-related products? But most stores only got two units today, a thin distribution. Charles Hodges of RadioShack said a "Skype Kiosk" or "Skype Corner" aren't part of RadioShack's current merchandising plans, contrary to some reports. There are no special displays right now. And with back-of-the-store placement, is this enough to gauge or stimulate demand?

The pack has earbuds with an on-the-cable microphone, a CD, a few instructions, and a coupon for 30 free SkypeOut minutes. All wrapped in a shiny foil bag. I'm running off in the morning to clear out my neighborhood stores; still Christmas shopping.

November 21, 2005 05:00 AM US Pacific Timezone

RadioShack Brings Skype-Ready Products to Customers Nationwide; RadioShack Becomes First U.S. Retailer to Offer Skype Services and Hardware, Including Motorola, Linksys, Logitech and Skype Starter Packs

FORT WORTH, Texas & LUXEMBOURG--(BUSINESS WIRE)--Nov. 21, 2005--RadioShack Corporation (NYSE: RSH) and Skype, the Global Internet Communications Company, today announced an agreement to distribute Skype-certified hardware and software in approximately 3,500 RadioShack stores. This makes RadioShack the first U.S. retailer to offer this new Internet phone service.

According to Skype officials, Skype has successfully brought free Internet calling to over 66 million people around the world since its launch in 2003, with an average of 175,000 new people joining each day. People with Internet connectivity can load Skype's free software enabling unlimited, high-quality voice calls to other Skype users anywhere in the world. Unlike other Internet phone services, Skype's unique software resides directly on a computer or mobile device to facilitate communications. Skype runs on Windows, Linux, Mac OS X, and Pocket PC platforms. Skype also offers premium services providing enhanced functionality for its users to make calls to regular phones for as little as two cents a minute.

This agreement with RadioShack supports Skype's growing presence in the U.S. market as a leading Internet communications company. RadioShack's convenient network of neighborhood stores staffed by knowledgeable sales associates will help expose Skype's unique worldwide free call service to a broad new audience of potential customers. Further, these retail stores will provide consumers with a place to shop for new Skype-certified products such as the Motorola Wireless Headset and Internet Calling Kit - the world's first Skype-certified Bluetooth offering.

Skype-certified phones and headsets at RadioShack include:

-- New Motorola H500 Bluetooth headset and PC850 USB Adapter bundled in the Internet Calling Kit - a RadioShack limited exclusive with a suggested price of $99.99

-- Linksys CIT200 Skype-enabled Cordless Internet Telephony Kit with a suggested price of $129.99 (with a limited time $15 mail-in rebate)

-- Logitech Premium USB Headset 250 with a suggested price of $39.99

-- VoIP Voice Cyberphone K USB Internet phone with a suggested price of $39.99

-- Skype Starter Packs: the Skype Starter Pack, priced at $4.99 until Dec. 24, 2005, allows anyone to get started with free Skype software, a Skype-enabled headset and 30 SkypeOut minutes to call any number anywhere in the world

"RadioShack is known for helping make the market for new technologies, and by all indicators Skype is poised to resonate with U.S. customers after experiencing huge success overseas," said Jim Hamilton, RadioShack's senior vice president and chief merchandising officer. "Customers should love how they can cut their phone bill without cutting their phone line, making unlimited free calls to other Skype users around the world."

"Skype is looking at innovative retail channels for distribution, and with 94 percent of the U.S. population living or working within five minutes of a RadioShack, we see them as an ideal partner through which to offer consumers access to Skype accessories," said Saul Klein, Skype's vice president of marketing.

About Skype

Skype allows people everywhere to make free, unlimited, voice calls, chat and share files. Skype is available in 27 languages and is the fastest growing voice communications offering worldwide. Skype has been downloaded more than 200 million times in 225 countries and territories. 66 million people are registered to use Skype's free services, with over 175,000 new registered users each day, and more than 4 million people using Skype simultaneously at any one time. Skype earns revenue through its premium service offerings, and has a growing network of global affiliates, and a community of developers working with the Skype APIs. Skype Technologies SA is headquartered in Luxembourg, with offices in London and Estonia, and in 15 other countries with users in every nation. Skype is an eBay company (NASDAQ: EBAY). To learn more visit www.skype.com.

Skype is not a telephony replacement service and cannot be used for emergency calling.

About RadioShack

Fort Worth, Texas-based RadioShack Corporation (NYSE: RSH) is one the nation's most trusted consumer electronics specialty retailers and a growing provider of business-to-business retail support services. The company operates a vast network of sales channels, including: nearly 7,000 company-owned and dealer stores; over 100 RadioShack locations in Mexico; and more than 700 wireless kiosks. RadioShack's knowledgeable and helpful sales associates deliver convenient product and service solutions within five minutes of where 94 percent of all Americans either live or work. For more information on RadioShack Corporation, visit www.RadioShackCorporation.com. To learn more about RadioShack products and services or to purchase items online, visit www.RadioShack.com.

Contacts


RadioShack Corporation
Charles Hodges, 817-415-3300
or
Sparkpr for Skype
Syreeta Mussante, 415-321-1865