Softbank’s recent acquisition of a controlling stake in distributor Brightstar caused some upheaval across the space and put a financial perpective on the importance of distributors to the mobile industry.
The Brightstar deal, which involved Softbank purchasing a 57% stake in the distributor for $1.26 billion, valued the privately held Brightstar at approximately $2.2 billion. Following the closing of the deal, Softbank in turn sold its Commerce and Services unit to Brighstar for an undisclosed amount, though the deal is expected to generate $3 billion in annual revenues for Brightstar.
As for the upheaval, the deal with Softbank linked Brightstar closer to Sprint, which Softbank gained control over last year. Brightstar gained a “preferential right to provide services including distribution, supply chain, handset insurance, buy-back and trade-in, multi-channel retail and financial services to certain Softbank telecommunications affiliates,” which was followed by Softbank appointing Brightstar CEO Marcelo Claure to the board of Sprint.
Looking to tap into the opportunity, a pair of industry veterans recently founded Ice Mobility, which Verizon Wireless has tapped as an authorized distributor. Those founders include Mike Mohr, who previously served as head of Celluphone, which is a master agent for Verizon Wireless, and former Brightstar US CEO Denise Gibson.
Ice Mobility, which is a sister company to Celluphone, is set to handle agent channels for Verizon Wireless out of two distribution centers in Los Angeles and Vernon Hills, Ill., and allows agents and retailers to purchase Verizon Wireless certified handsets and other devices from Ice.
RCR Wireless News spoke with Mohr about the evolution of the distributor market and how retail channels have fared in dealing with the continued flood of smartphones, growing influence of tablets and consumer acceptance of device financing models.
RCR Wireless News had previously talked with Mohn when he was at Celluphone.
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Ice Mobility looks to ride challenges, opportunities of distributor market
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