Wal-Mart (WMT) To Sell Broadband Service

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Wal-Mart (WMT) is teaming up with Hughes Communications (HUGH) to sell satellite-based broadband, according to a report in BusinessWeek. While DSL and cable have much larger customer bases, the entry of Wal-Mart into the market could force price cuts at the incumbents, if they want to keep share.

Coupled with WiMax deployments from firms like Clearwire (CLWR) and Sprint (S), the number of companies marketing big pipes to the home is increasing fairly fast. Good for customers. Bad for the companies.

Douglas A. McIntyre