RadioShack dumps T-Mobile, will offer Verizon instead from mid-September

By on Jul 26, 2011 at 8:30 AM
Breaking July 26, 2011

Verizon Wireless products and services have been noticeably absent from RadioShack’s wireless portfolio, but that comes to an end this fall. The nationwide retailer on Tuesday announced an agreement that will finally see it begin to offer devices from the country’s top carrier on September 15th. At the same time, The Shack announced that it will stop selling T-Mobile products and services a day earlier on September 14th. Following the company’s second-quarter earnings report, which saw net income slide 53% from the same quarter last year, RadioShack stock climbed 7% on the news. “This is a substantial win for our customers, as this relationship with the nation’s largest wireless provider will further enhance our position as a leading multi-carrier wireless retailer,” RadioShack CEO Jim Gooch said in a statement. ”The addition of Verizon Wireless, in combination with our existing carrier partners, positions us to now offer the best assortment of carriers, rate plans, devices and accessories for every consumer need.” RadioShack’s full press release follows below.

RadioShack to Offer Verizon Wireless Products and Services in Company-Operated Stores

- New agreement with industry leader means consumers benefit, with more than 4,300 RadioShack stores to offer Verizon Wireless services
- RadioShack ceases offering T-Mobile services in stores

FORT WORTH, Texas, July 26, 2011 /PRNewswire via COMTEX/ –

RadioShack Corporation (NYSE: RSH),a leading national retailer of innovative mobile and technology products, services and accessories, today announced that it has entered into an agreement with Verizon Wireless, the nation’s largest wireless carrier, to provide postpaid and prepaid wireless products and services in RadioShack’s company-operated stores nationwide beginning Sept. 15, 2011. The Company also announced that it will cease offering T-Mobile wireless products and services in its company-operated stores effective Sept. 14, 2011.

RadioShack expects to launch Verizon Wireless products and services, including top-selling handsets, in more than 4,300 U.S. company-operated stores and through its website, www.RadioShack.com, beginning Sept. 15.

Jim Gooch, president and chief executive officer of RadioShack Corporation, commented on the new Verizon Wireless agreement, stating, “This is a substantial win for our customers, as this relationship with the nation’s largest wireless provider will further enhance our position as a leading multi-carrier wireless retailer. The addition of Verizon Wireless, in combination with our existing carrier partners, positions us to now offer the best assortment of carriers, rate plans, devices and accessories for every consumer need.”

Dan Mead, president and chief executive officer of Verizon Wireless, said, “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. RadioShack has a long track record of providing customers with quality products and services in convenient locations around the country, and we are delighted to join with them on this venture.”

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  • Anonymous

    RadioWho?

  • Peterdfriedman

    Radio shack does such a crappy job with thier cellphones.  Dummy units are no way to sell phones.  Differentiate yourself for gods sakes.  Why would I go to a crappy shack when I can go to best buy?  There is a need for a nice multi carrier retailer, if its done right.

    • mikeD

      Most of the best buy’s I’ve seen are mostly filled with dummy units also.

    • Anonymous

      Authorized retailers pay full price for all their phones. Big 4 pay a subsidized bulk price.

    • Anonymous

      RadioShack actually has better prices on their phones than everyone else most of the time. For example, they’re selling the Thrill for $79 instead of $99 on launch day. Plus they’ve got a pretty nice trade-in program (you can trade in an iPhone 3GS for an iPhone 4 and pay only something like $30 if you’re upgrade-eligible). I’d say that’s distinguishing themselves pretty well.

      Don’t just judge them by their somewhat musty reputation.

    • numetheus

      I have not seen one Best Buy around here with real units. They all have dummy ones.

  • Anonymous

    Authorized retailers pay full price for all their phones. Big 4 pay a subsidized bulk price.

  • Anonymous

    Wait a second, I thought RadioShack got officially renamed to The Shack.  What happened with that?  Anyway, this isn’t really news, other than maybe them dropping T-Mobile (in preparation of the merger, perhaps?).  There’s already a ton of cellphone stores and kiosks in the mall near where I live.  Radio Shack will simply be one more among many that already sell Verizon phones and service.

    And quite frankly, I don’t think I’d ever trust a third party to handle a contract renewal on my account properly.  Heck, I don’t even trust the punks working at my local corporate Verizon store.  I have a sweet grandfathered voice plan that’s survived two carrier mergers, which beats any Verizon plans, and I don’t want any human messing that up.  I handle any account changes via Verizon’s website, including ordering new phones.

    • Anonymous

      The guys at my local RadioShack have been champs handling several complicated issues with my lines (plan migrations, discounts, etc.) But there are definitely some Shacks that are much better run than others, so you have to look around for a nice clean one with knowledgeable people.

      Their prices are worth a look, in my experience.

  • http://www.sakurawalker.com iEric

    That’s ok, I dumped radio shack a long time ago.

  • Anonymous

    You have to wonder if this will help AT&T make the case for the T-Mobile merger with the government. There’s been a lot of Internet rage over the AT&T merger, but truthfully, T-Mobile’s coverage just doesn’t compete with the other three majors (especially outside major cities), and now they’ve just lost some 5,000 retail locations in one fell swoop. If they’re not acquired, they might just fold, and how is THAT good for consumers?

    • Scott

      I don’t think it will help AT&T’s case, but you know that the decision to dump TMO didn’t have anything to do with the numbers.  They are anticipating the merger to go through, and if they waited until that happened, they probably wouldn’t have been able to add Verizon.  They know that once the merger goes through (which I am against, by the way), they will be able to service those customers again.  I am curious to see if they eliminate TMO in the Target and Sam’s Club locations that they run as well.  That will hurt since most of their TMO activations come from those locations and not the stand alone RS stores.

      • Anonymous

        How do we know it had nothing to do with the numbers? T-Mo has been hemmorhaging subscribers, and their coverage really isn’t the best. It would be enlightening to see comparative return rates between the three carriers the Shack has been offering.

        It’s just hard for me to imagine the government rejecting the buyout now and leaving what looks like a sinking ship to its own devices (so to speak).

  • B9173697

    When I worked for Radioshack in 2003 we sold Sprint and Verizon. Right after I left they dumped Verizon and got TMobile because they said Verizon sucked. Now they’re dumping TMobile to go back to Verizon. Awesome!

  • Anonymous

    Radio Shack is dropping T-Mobile on September 14. Who wants to bet that we’ll be seeing the new iPhone on September 15?

    • Guest88

      Nope will not be happening until October…I work at a Radio Shack and there is no focus on the new IPhone until October.

  • http://twitter.com/HireMeAccenture HireMeAccenture.com

    People still go to RadioShack??

    Help Me Get A Job
    www[dot]hiremeaccenture[dot]com

    Leave A Comment

    • Anonymous

      Take a look at their phone prices compared with everyone else’s, then come back here and be smug about them. They’re overpriced on some stuff and some of their stores are awful, but if you find one that’s well managed, they’re a great little wireless retailer.

  • Rlcornelous

    Who even GOES to Radio Shack anymore??????????

    • Eli Walls

      Considering the fact that Radio Shack sells more cell phones than any other non-carrier retailer (including Best Buy), I’d say quite a few people.

  • Anonymous

    I bought my first Verizon handset from Radioshack in 2002

  • Anonymous

    I just paid $22.87 for an iPad2-64GB and my girlfriend loves her Panasonic Lumix GF 1 Camera that we got for $38.76 there arriving tomorrow by UPS. I will never pay such expensive retail prices in stores again. Especially when I also sold a 40 inch LED TV to my boss for $675 which only cost me $62.81 to buy. Here is the website we use to get it all from, GrabPenny.com

  • http://pulse.yahoo.com/_DIJC7QCUMXJPENMCV3FSL7JP6I Jana Guerrero

    I just paid $22.87 for an iPad2-64GB and my girlfriend loves her Panasonic Lumix GF 1 Camera that we got for $38.76 there arriving tomorrow by UPS. I will never pay such expensive retail prices in stores again. Especially when I also sold a 40 inch LED TV to my boss for $675 which only cost me $62.81 to buy. Here is the website we use to get it all from, MetaCent. com

  • Radioshack Employee

    our store sells 40 – 50 new 2 year contracts a month and at least 60 – 80 no-contract phones. people break/lose their phones all the time. and upgrade their phones. and lose chargers…. the list goes on.

    not to mention they carry boost mobile. a very popular company amongst those wishing to contact mexico on a regular basis. LOTS of business there.

  • Jjshep4

    I always go to radio shack in Manhattan beach when I need to upgrade my iphone. The staff there is always kind and courteous. They have a great program where you can trade in your old cell phone and get cash towards your upgrade or anything in the store. They also give instant rebates on all carriers.. I went there the other day and traded in my old iPhone 3 gs and they gave me over $190 off my iPhone 4. Wow! That’s like $10 for a new iphone4. They also gave me 15% port my second accessory 25% off the third and believe it or not 50% off the fourth. I don’t know why there is not a line out the door when they have such  good deals!

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