DF@Work
08-01-2005, 01:02 PM
RadioShack Switches Wireless Partners
By Susan Rush
Wirelessweek.com
RadioShack Corporation remains committed to its wireless business, but the company is mixing up its product offering a bit. The electronics retailer has signed a 10-year distribution deal to bring Cingular Wireless products to its stores. Not everything is changing at RadioShack; the company did renew an agreement with Sprint.
Beginning in 2006, Cingular's postpaid and GoPhone prepaid products will be available at more than 5,000 RadioShack outlets across the United States. The deal, according to Cingular, will make RadioShack its largest distribution outlet.
RadioShack says it was attracted to a deal with Cingular because it gives the retailer an entry into the GSM marketplace. The renewed 11-year deal with Sprint keeps RadioShack's hand in the CDMA market as well.
Cingular says the companies plan to explore other distribution opportunities as well.
The Cingular deal comes at a time when RadioShack is ending a more than 5-year relationship with Verizon Wireless. The company says it will no longer sell Verizon Wireless products and services in its stores at year's end. Verizon also has distribution agreements in place with other electronics giants, including Circuit City and Best Buy.
"Verizon Wireless and RadioShack are moving in opposite directions as it relates to wireless communications sales," said Lowell McAdam, Verizon Wireless' chief operating officer, in a prepared statement. "It no longer made sense to continue the relationship given the high cost of this channel relative to other distribution channels and our insistence that growth and profit be balanced."
"The new agreements are expected to provide RadioShack with more profits in the short- and long-term and significant future growth opportunities due to entrance into the GSM market, addition of Nextel products and services (pending their merger with Sprint), and opportunities for expanded distribution," the retailer said in a prepared statement.
By Susan Rush
Wirelessweek.com
RadioShack Corporation remains committed to its wireless business, but the company is mixing up its product offering a bit. The electronics retailer has signed a 10-year distribution deal to bring Cingular Wireless products to its stores. Not everything is changing at RadioShack; the company did renew an agreement with Sprint.
Beginning in 2006, Cingular's postpaid and GoPhone prepaid products will be available at more than 5,000 RadioShack outlets across the United States. The deal, according to Cingular, will make RadioShack its largest distribution outlet.
RadioShack says it was attracted to a deal with Cingular because it gives the retailer an entry into the GSM marketplace. The renewed 11-year deal with Sprint keeps RadioShack's hand in the CDMA market as well.
Cingular says the companies plan to explore other distribution opportunities as well.
The Cingular deal comes at a time when RadioShack is ending a more than 5-year relationship with Verizon Wireless. The company says it will no longer sell Verizon Wireless products and services in its stores at year's end. Verizon also has distribution agreements in place with other electronics giants, including Circuit City and Best Buy.
"Verizon Wireless and RadioShack are moving in opposite directions as it relates to wireless communications sales," said Lowell McAdam, Verizon Wireless' chief operating officer, in a prepared statement. "It no longer made sense to continue the relationship given the high cost of this channel relative to other distribution channels and our insistence that growth and profit be balanced."
"The new agreements are expected to provide RadioShack with more profits in the short- and long-term and significant future growth opportunities due to entrance into the GSM market, addition of Nextel products and services (pending their merger with Sprint), and opportunities for expanded distribution," the retailer said in a prepared statement.