Radio Shack to sell Cingular in 2006

[Fire14]

Cingular Signs Long-Term Distribution Agreement with RadioShack

New contract adds 5,000 stores to Cingular sales channels

ATLANTA (August 1, 2005) Cingular Wireless today announced a 10-year
distribution agreement with RadioShack Corporation (NYSE: RSH), the
nation's most trusted consumer electronics specialty retailer, that will
give Cingular more than 5,000 new sales outlets across the United States.
This agreement also will make RadioShack Cingular’s single largest
distribution outlet.

Cingular, a joint venture between SBC Communications Inc. (NYSE: SBC) and
BellSouth Corporation (NYSE: BLS) will sell its full line of post-paid
products and GoPhone pre-paid products through RadioShack stores beginning
in the first quarter of 2006. Cingular is the nation’s largest wireless
company, with more than 51.6 million customers.

“Today’s agreement with RadioShack builds on Cingular’s already-strong
distribution system,” said Cingular President and CEO Stan Sigman.
“RadioShack brings a nationwide network of stores and a team of
knowledgeable and helpful salespeople with an unparalleled understanding
of wireless products. Cingular is looking forward to leveraging these new
sales channels to grow our business and serve our customers.”

Cingular has 2,300 company-owned stores and kiosks and sells its postpaid
products in 5,100 other national retail stores. The company is also
represented in 15,000 authorized agent locations.

The two companies are also exploring other distribution opportunities in
the future.

“Cingular’s compelling products and services - from the Razr to the
GoPhone - soon will be available to a savvy consumer base through our
partners at RadioShack,” said Cingular Chief Operating Officer Ralph de la
Vega. “We are excited to bring consumers the widest possible choice in
places to buy Cingular service.”

[ComicalMoodyDan]

Interesting information from another news article I read regarding this. I will post a part of what I read from it below.

Beginning this fall, RadioShack will offer Nextel products and services pending regulatory approval of its merger with Sprint. Cingular products and services will become available in January 2006. After enjoying the benefits of more than five years of selling Verizon Wireless products and services, RadioShack will discontinue selling Verizon Wireless at the end of 2005.

[budney]

Our local RadioShack started selling Cingular a few months back. It is run by a company called Computer King, so I guess they are able to sell who ever they want since it isn't a corporate store.

[Blue_Tech]

Not sure how that works... Radio Shack here in town sells Bluegrass and Sprint, all the Radio Shacks in Louisville sell VZW. I guess The Shack decided to clean up that part of the business.

Kind've like how Wal-Mart used to let any company put a kiosk in their stores, now its only their selected providers that they've made deal with.

[viewfly]

RadioShack has been selling Cingular service in some stores for 5 years or more in CT. But each RS store is different. One sells Verizon, the other Cingular or sprint. These guys seem to operate independently. Ever try to return something to a different store? They will not do it.

[Tony E!]

Originally Posted by budney Our local RadioShack started selling Cingular a few months back. It is run by a company called Computer King, so I guess they are able to sell who ever they want since it isn't a corporate store.

The local RS here in LA sell both Verizon and Sprint, with the merger it would be no surprised for them to start selling Nextel service, wonder if Costco stores will eventually sell other wireless services besides Sprint.

[Charlyee]

Our local RS sells Sprint and Verizon. They are right across the road from the strip mall that has the Verizon and Sprint corporate stores. Somehow the RS never seems to carry all the available phones. As an example the local RS never carried the LG VX-7000.

[bobolito]

I wonder how Sprint feels with this change. I read Radio Shack will no longer be selling Verizon. Sounds like Radio Shack ported from Verizon to Cingular.

The good thing is that from now, next time I tell my Radio Shack retailer I already have a cell phone, they won't try to make me switch companies.

RADIO SHACK SIGN-UP WITH CINGULAR, DROPS VERIZON Top Mobile-Service Carrier To Replace Verizon and Join Sprint at the 5,000 Stores By SHAWN YOUNG Staff Reporter of THE WALL STREET JOURNAL August 1, 2005; Page B4 Cingular Wireless will replace Verizon Wireless as a cellphone-service provider sold through RadioShack Corp.'s U.S. stores starting next year, as competition between the nation's two largest wireless operators intensifies. RadioShack is an important source of sales for Verizon Wireless and Sprint Corp., both of whose selling agreements with the retail chain had been due to expire in the next year. Sprint, based in Overland Park, Kan., has extended its contract. In recent years, wireless companies have come to rely more heavily on their own sales outlets for business. Some analysts had expected Verizon Wireless to remain with RadioShack, but to seek more favorable terms. Instead, RadioShack and Cingular forged a deal. Terms weren't disclosed. RadioShack, based in Fort Worth, Texas, is the nation's largest independent wireless merchant. It operates roughly 5,000 stores and other outlets. Verizon Wireless recently has expanded outside-sales deals to Circuit City Stores Inc. and Best Buy Co., said spokesman Jeffrey Nelson. "We've had a long, great relationship with RadioShack. We wish RadioShack well as we pursue other avenues and pursue really strong in-store growth," he said. Verizon Wireless, a joint-venture between Britain's Vodafone Group PLC and Verizon Communications Inc., of New York, is the nation's second-largest wireless company by customer count. The Cingular deal and Sprint's contract renewal are likely to add even more market muscle to two companies that have recently undertaken giant mergers. Cingular, a joint venture between SBC Communications Inc. of San Antonio and Atlanta's BellSouth Corp., became the nation's largest wireless company by number of customers late last year when it acquired AT&T Wireless Services Inc. for about $41 billion. Sprint has agreed to acquire Nextel Communications Inc., based in Reston, Va., for about $35 billion. "We have had a great relationship with RadioShack for the past 10 years, and we're happy to continue it for another 10 years," said Bill White, a spokesman for Sprint, whose current contract with the retailer expires next summer. Although Cingular has invested in updating its own network of stores, it expects the partnership with RadioShack to contribute significantly to sales, thanks to a work force that knows wireless and has a record of successfully selling upscale plans and features, Glenn Lurie, Cingular's president of national distribution, said in an interview. "We view this relationship as key to getting to our goal as a business," Mr. Lurie said. "The goal is to be No. 1 in every aspect of wireless, and we view dominating retail as part of that." Wireless sales, not including accessories, account for about 34% of RadioShack's revenue, but its share of overall wireless sales has been slipping. The deals with Cingular and Sprint will allow it to offer different types of wireless networks -- Sprint-Nextel, Cingular and Verizon Wireless each use a different technology -- creating a greater pool of potential customers. RadioShack also believes that Cingular and Sprint are likely to continuing expanding their customer bases in the years ahead. "We are positioning ourselves with two carriers that are going to be market-share winners," says David Edmondson, president and chief executive of RadioShack.

[Fire14]

Maybe they felt it was better to deal with 2 separate technology companies vs 2 CDMA companies, to give people more choices.
I know the stores by me all sell Verizon & Sprint, and with Verizon in Circuit city & now around our area 6th Ave, it may have been effecting sales.

[bobolito]

Yeah. I think having a variety of choices (CDMA, GSM and iDEN) will be more compelling to more people than the current Radio Shack/CDMA monopoly.

[DarrylLeeOHS30]

Ours sells Eloqui and Verizon. When it was US Cellular, they didn't sell it. But anyway, I'd say that when Cingular's network here is up and running, that will be their main place in Oneida to sell service.

[jones]

Radio Shack's main reason is that
it is Losing out to VZW stores.
Meaning people would rather
go to VZW store to buy
it's service than go through Radio Shack.

I guess Radio Shack figure
they can compete with
Cingular stores.
VZW stores does in-store repairs
while Cingular stores does'nt.

[Fathead]

corp RS stores sell VZW and Sprint, and next year, Cingular replaces VZW. Franchise stores sell whatever they want.

[guy2]

Radio Shack was loosing market share to Verizon stores.


http://www.forbes.com/markets/bonds/...markets15.html

[EdwardP]

I wonder how the Cingular dealers inside the malls (either stores or kiosks) feel about this...

[ComicalMoodyDan]

Kingsport has two RadioShacks and both of them sell Verizon Wireless and Sprint PCS. I actually signed up for Verizon at my local RadioShack in the mall and I have to say I got a pretty good deal. I only paid $40 for my Samsung a670 on a two year agreement and the the guy that signed me up gave me detailed billing for free.

[WirelessBeachBum]

Originally Posted by Fathead corp RS stores sell VZW and Sprint, and next year, Cingular replaces VZW. Franchise stores sell whatever they want.

Yep Verizon is pulling out of all the Radio Shack corporate locations...I assume the independent Radio Shacks may still choose to sell Verizon however they will probably have to go exclusive.

[danny boi]

Originally Posted by guy2 Radio Shack was loosing market share to Verizon stores. http://www.forbes.com/markets/bonds/...markets15.html

Yep. Radio Shack has been posting less than positive numbers lately on the wireless front. VZW is a little too much for them to handle or compete against. They want to make their "numbers" too so I don't blame them.

I'm not sure how much less competitive Cingular will be for them? They might try to under price equipment and throw in freebies to entice customers away from Corporate Stores or authorized agents.

Ever since the advent of Best Buy or Circuit City, Radio Shack seems less inviting and quite boring actually. I like the big stores with the big TV's and large amount of merchandise to browse through.

Hopefully Cingular can assist with a new image for the sluggish company.

[bobolito]

The only attractive Radio Shack had (at least for us electronic gadget fans) was that you could find many things you could not find elsewhere. Nowadays, Radio Shack doesn't have many of these things anymore and now sells the same things you can find even at CompUSA and Circuit City. With this change, I really have no reason to go to Radio Shack that often, except to buy batteries.

[cryogenic]

so whose decision was it? Radio Shack opting to no longer sell Verizon or Verizon opting to not sell service through Radio Shack? Or was it a mutual decision?

[twopiece]

Originally Posted by jones Radio Shack's main reason is that it is Losing out to VZW stores. Meaning people would rather go to VZW store to buy it's service than go through Radio Shack. I guess Radio Shack figure they can compete with Cingular stores. VZW stores does in-store repairs while Cingular stores does'nt.

This could be a both a good and bad thing for VZW. Although it reduces the additional locations where VZW phones are sold, there is now one channel where subscribers can go for cs and billing. Undoubtedly there won't be any more complaints of poor cs at RS.

[saturnsl01]

I would like to see wal-mart sell Verizon. Right now lots of people are buying sprint and cingular at wal-marts, and Verizon is kind of missing the bus there.

[bobolito]

Originally Posted by cryogenic so whose decision was it? Radio Shack opting to no longer sell Verizon or Verizon opting to not sell service through Radio Shack? Or was it a mutual decision?

Verizon's contract ends this year and they just decided not to renew it.

[RJB]

That is good to spread it out more so that the actual stores are not so crowded

[budney]

Wirelessly posted
(BlackBerry7510/3.7.2 UP.Browser/5.0.3.3 UP.Link/5.1.2.12)

Originally Posted by Tony E Originally Posted by budney Our local RadioShack started selling Cingular a few months back. It is run by a company called Computer King, so I guess they are able to sell who ever they want since it isn't a corporate store. The local RS here in LA sell both Verizon and Sprint, with the merger it would be no surprised for them to start selling Nextel service, wonder if Costco stores will eventually sell other wireless services besides Sprint.

Yea, every other place I have lived RS has been like that. The RS down here sold T-Mobile at one time as they still have a sign.

[budney]

Wirelessly posted
(BlackBerry7510/3.7.2 UP.Browser/5.0.3.3 UP.Link/5.1.2.12)

Originally Posted by bobolito The only attractive Radio Shack had (at least for us electronic gadget fans) was that you could find many things you could not find elsewhere. Nowadays, Radio Shack doesn't have many of these things anymore and now sells the same things you can find even at CompUSA and Circuit City. With this change, I really have no reason to go to Radio Shack that often, except to buy batteries.

I agree completely. RS shot them selves in the foot tring to compete with these other stores. Not to mention their prices are much hire now too.

[Fire14]

I read an article this morning that said, Radio Shack wanted to offer people more then 1 type of wireless service & with the merger they will be offering GSM, CDMA & Iden phones & service, which they felt would be a better all around choice for the consumer vs CDMA phones & service only.

[Charlyee]

According Radioshack's media release, they have entered into 10 and 11 year contract with Cingular and Sprint. Here is the complete article:

Radio Shack Media Release

[lildrummerboy]

My radioshack has a verizon store and a sprint store right down the street and the closest cingular store is 40 miles away. So I'm pretty excited that we are going to see more customers as a result of this new deal. Oh yeah, and if you think that RadioShacks are boring, you should see mine. All Radioshacks are in the porocess of being remodeled (except the franchise stores) heres a picture of what they are going to look like when they are done.

Radioshack concept 3 store.