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Radio Shack to sell Cingular in 2006

Discussion in 'Wireless News' started by Fire14, Aug 1, 2005.

  1. Fire14

    Fire14 Easy,Cheap & Sleazy
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    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.”
     
  2. ComicalMoodyDan

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

     
  3. budney

    budney Resident Headbanger
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    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.
     
  4. Blue_Tech

    Blue_Tech Member
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    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.
     
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  5. viewfly

    viewfly Mobile RF Advisor
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    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.
     
  6. Tony E!

    Tony E! Retired Mod
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    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.
     
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  7. charlyee

    charlyee Ultimate Insanity
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    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.
     
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  8. bobolito

    bobolito Diamond Senior Member
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    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. ;)

     
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  9. Fire14

    Fire14 Easy,Cheap & Sleazy
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    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.
     
  10. bobolito

    bobolito Diamond Senior Member
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    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. ;)
     
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  11. 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.
     
  12. jones

    jones Silver Senior Member
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    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
    .
     
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  13. Fathead

    Fathead In the Industry
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    corp RS stores sell VZW and Sprint, and next year, Cingular replaces VZW. Franchise stores sell whatever they want.
     
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  14. guy2

    guy2 Senior Member
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  15. EdwardP

    EdwardP Bronze Senior Member
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    I wonder how the Cingular dealers inside the malls (either stores or kiosks) feel about this...
     
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  16. ComicalMoodyDan

    ComicalMoodyDan Gold Senior Member
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    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. :D
     
  17. WirelessBeachBum

    WirelessBeachBum Soylent Green is People
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    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.
     
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  18. @TheRealDanny

    @TheRealDanny ALL IN
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    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.
     
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  19. bobolito

    bobolito Diamond Senior Member
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    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.
     
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  20. cryogenic

    cryogenic Bronze Senior Member
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    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?
     
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  21. twopiece

    twopiece D'oh!!
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    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.
     
  22. saturnsl01

    saturnsl01 Junior Member
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    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.
     
  23. bobolito

    bobolito Diamond Senior Member
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    Verizon's contract ends this year and they just decided not to renew it.
     
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  24. RJB

    RJB Gold Senior Member
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    That is good to spread it out more so that the actual stores are not so crowded
     
  25. budney

    budney Resident Headbanger
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    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.
     
  26. budney

    budney Resident Headbanger
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    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. :(
     
  27. Fire14

    Fire14 Easy,Cheap & Sleazy
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    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.
     
  28. charlyee

    charlyee Ultimate Insanity
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    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
     
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  29. lildrummerboy

    lildrummerboy Junior Member
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    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.
     

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