Both the telecom and pay-TV industries have seen their share of disruption, forcing providers to adopt revenue diversification strategies to replace lost revenue from legacy services. In the latest example, satellite pay-TV provider DISH is getting into the smartphone repair business with an interesting model.
DISH announced the new service today, initially focused on iPhone repairs. DISH will dispatch a technician to a customer’s home or business to repair, saving the hassle of having to take your iPhone somehwere to be fixed (or ship it). The service will be provided nationwide and available to anyone, whether they are an existing DISH subscriber or not.
“Fixing your phone shouldn’t mean losing your phone for days on end, so we come to you – whether you’re at the office, the gym or even the coffee shop,” said John Swieringa, DISH executive vice president of operations in a press release. “DISH is uniquely positioned with the technical know-how and ability to respond to a customer’s needs in every state across the country.” (story continues below)
There is a $35 technician dispatch fee, and pricing for the repair services ranges from $75 for battery replacement, up to $185 for screen repair on an iPhone 6+. Customers will also be able to track their technician’s progress towards meeting their appointment time through an online technician tracking tool.
The idea may seem a little out of place for a pay-TV provider. But it highlights the need to be creative when exploring revenue diversification strategies. DISH says they plan to expand coverage of other devices beyond the iPhone.
Given the penetration of smartphones and the hassle of getting them repaired, maybe DISH is on to something. Time will tell if they can execute on this strategy and create a tangible contributor to revenue growth. There will obviously be upselling opportunities for every smartphone repair visit they complete as well.
Out-of-the-box revenue diversification strategies are not unique to DISH. Other examples include Frontier offering tech support for financial software developer Intuit and Comcast piloting the resale of electricity. Aureon (formerly Iowa Network Services) has diversified into businesses including HR outsourcing and management.