5G Technology World

  • 5G Technology and Engineering
  • FAQs
  • Apps
  • Devices
  • IoT
  • RF
  • Radar
  • Wireless Design
  • Learn
    • 5G Videos
    • Ebooks
    • EE Training Days
    • FAQs
    • Learning Center
    • Tech Toolboxes
    • Webinars/Digital Events
  • Handbooks
    • 2024
    • 2023
    • 2022
    • 2021
  • Resources
    • Design Guide Library
    • EE World Digital Issues
    • Engineering Diversity & Inclusion
    • Engineering Training Days
    • LEAP Awards
  • Advertise
  • Subscribe

RadioShack Ditches T-Mobile for Verizon Wireless

By Staff Author | July 26, 2011

RadioShack will stop selling T-Mobile USA devices in September at its U.S. retail stores in favor of Verizon Wireless, the company announced today.

T-Mobile products will be pulled from shelves on Sept. 14. Verizon Wireless devices will hit RadioShack’s website and more than 4,300 company-operated stores in the United States the next day, Sept. 15.

RadioShack will continue to offer T-Mobile’s postpaid products in its 680 Target Mobile stores.

The move will cost RadioShack $3 million in unsalable T-Mobile cell phones it had in stock at the end of June. The company also warned it will take a $23 million charge in the third quarter on a payout to T-Mobile and additional inventory losses.

T-Mobile called the split with RadioShack a “mutual decision” and said it would pursue deals with other retailers.

“T-Mobile and RadioShack today announced a mutual decision to no longer sell T-Mobile service plans and devices in RadioShack retail locations,” the company said in a statement. “T-Mobile will continue to expand distribution in national retailers across the country and expects to announce further channel growth in the coming weeks.”

UPDATE: Company retail director James Kirby later said, “After careful consideration, we decided that to in order to increase the effectiveness of our retail network and in line with our sales strategy, T-Mobile will exit RadioShack retail locations, effective September 15, 2011. We are currently focused on higher return national retailer opportunities and we expect to announce new channel growth in the coming weeks, which will more than double the number of RadioShack doors currently offering T-Mobile products and services.”

RadioShack’s decision to ditch T-Mobile came after the wireless operator allegedly breached its contract with the electronics retailer last summer. The two companies have yet to resolve the issue.

“We are continuing discussions with T-Mobile concerning resolution of their breaches,” RadioShack said in its quarterly report filed with the SEC today. “The outcome of this action is uncertain and the ultimate resolution of this matter could have a material adverse effect on our results of operations, financial condition and business operations.”

Weak sales of T-Mobile products also have been a drag on RadioShack’s revenue. The company said in its quarterly report that the “underperformance” of T-Mobile’s postpaid products were partially to blame for a drop in its profit margin over the first half of this year. 

RadioShack has not disclosed specifics of how T-Mobile violated its contract, stating only in February that the operator had until March to “cure the breaches” and later pushing out its deadline on the issue until April.

Verizon Wireless CEO Dan Mead said in a statement the deal with RadioShack would “substantially” expand its reach. “We view this as an opportunity to substantially extend our customer reach at a time when our portfolio of mobile products has never been more exciting,” he said.

RadioShack also offers products from AT&T and Sprint.


Filed Under: Carriers

 

Next Article

← Previous Article
Next Article →

Related Articles Read More >

eSIM
eSIM eases changing carriers for phones and IoT
QoE and QoS comparison
Benchmarking in 5G: More important than ever
iPhone 12
I bought a 5G phone, now what?
6G
Key takeaways from 6G Symposium

Featured Contributions

  • Overcome Open RAN test and certification challenges
  • Wireless engineers need AI to build networks
  • Why AI chips need PCIe 7.0 IP interconnects
  • circuit board timing How timing and synchronization improve 5G spectrum efficiency
  • Wi-Fi 7 and 5G for FWA need testing
More Featured Contributions

EE TECH TOOLBOX

“ee
Tech Toolbox: 5G Technology
This Tech Toolbox covers the basics of 5G technology plus a story about how engineers designed and built a prototype DSL router mostly from old cellphone parts. Download this first 5G/wired/wireless communications Tech Toolbox to learn more!

EE LEARNING CENTER

EE Learning Center
“5g
EXPAND YOUR KNOWLEDGE AND STAY CONNECTED
Get the latest info on technologies, tools and strategies for EE professionals.

Engineering Training Days

engineering
“bills
5G Technology World
  • Enews Signup
  • EE World Online
  • DesignFast
  • EDABoard Forums
  • Electro-Tech-Online Forums
  • Microcontroller Tips
  • Analogic Tips
  • Connector Tips
  • Engineer’s Garage
  • EV Engineering
  • Power Electronic Tips
  • Sensor Tips
  • Test and Measurement Tips
  • About Us
  • Contact Us
  • Advertise

Copyright © 2025 WTWH Media LLC. All Rights Reserved. The material on this site may not be reproduced, distributed, transmitted, cached or otherwise used, except with the prior written permission of WTWH Media
Privacy Policy

Search 5G Technology World