RadioShack Dials Up Cingular; Hangs Up on Verizon

NewsFactor covers RadioShack's long-term deal with Cingular, its extended deal with Sprint, and the ending of its relationship with Verizon Wireless. The moves were made to broaden the company's mobile strategy, allowing it to now offer both CDMA and GSM services.

Yanke Group analyst John Jackson thought the reason behind thhe replacement of Verizon with Cingular was due to compensation issues. "The difference between GSM and CDMA is negligible to consumers, and it's likely that RadioShack is getting a better deal with Cingular. Losing RadioShack is significant for Verizon because RadioShack has a reputation for good service and they have a huge network of stores," he added.

According to the article, Cingular "will gain more than 5,000 new sales outlets across the U.S., with RadioShack becoming Cingular's single largest distribution outlet."

via NewsFactor Network