Dixons Carphone And Sprint In US Stores Deal

Dixons Carphone (LSE: DC.L - news) has announced plans to expand into the lucrative US mobile market in a deal with major American provider Sprint.

The UK retailer will initially provide "mobile phone retail expertise and proprietary knowledge" to Sprint as it opens 20 preliminary stores in the US.

The first stores are expected to open in August or September, and a small team from Dixons Carphone - including Graham Stapleton, who runs the Carphone Warehouse branch of the business - will relocate to the US to help advise Sprint on the launch.

If the 20 Sprint-branded shops prove successful, the two companies will then embark on an equal ownership venture.

Each will control 50% of the interest at a buy-in cost of £20.5m ($32m) to Dixons Carphone.

Sprint and Dixons Carphone eventually plan to roll out 500 new Sprint-branded stores across the country over a period of three to four years.

Dixons Carphone was created last year through a merger of electrical giant Dixons and mobile phone company Carphone Warehouse.

It is one of the largest retailers in the UK and owns brands including Currys and PC World.

Sprint is one of the three biggest mobile network providers in America alongside AT&T (Sao Paolo: ATTB34.SA - news) and Verizon (NYSE: VZ - news) .

Sources say Sprint approached Dixons Carphone with the idea of an agreement because they were impressed by their ability to offer a good "customer journey".

This is not the first time Dixons Carphone has entered the US market; in 2007 Carphone Warehouse partnered with US firm Best Buy (Swiss: BBY.SW - news) in a similar mobile deal.

The company made £838m when they sold their stake in the venture in November 2011.

Andrew Harrison, deputy group chief executive of Dixons Carphone, said: "We are delighted to be working with Sprint and to be a part of a transformation in their business that is already making impressive headway.

"This is a very exciting venture for us, and is a significant step in growing our CWS business in the US.

"We bring specialist knowledge and skills to this partnership and will be looking to deliver innovation and outstanding customer service under the Sprint brand."

Marcelo Claure, Sprint CEO, said: “We are excited to partner with Dixons Carphone and to leverage all their know-how as one of the world's leading wireless retailers to benefit Sprint and its customers.

"We are committed to offering the best customer experience when buying wireless products and services."