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RadioShack Inks Long-Term Deal with Cingular By Jay Wrolstad August 1, 2005 2:10PM     The decision to replace Verizon with Cingular might have more to do with compensation issues than with adding an alternative wireless technology, suggested Yankee Group analyst John Jackson.   Related Topics radioshack cingular Latest News Android 2.1 Update Issued for Droid IBM Offers Software Building in Cloud Google Tool Lures Exchange Users New Xeon May Retire 'Geezer Servers' Cisco Offers Lower-Cost Switches RadioShack has inked a long-term agreement with wireless carrier Cingular and will end its relationship with Verizon Wireless as the electronics retailer seeks to broaden its mobile-phone strategy. In addition to creating the 10-year pact with Cingular, RadioShack extended its partnership with Sprint for another 11 years. Cingular and Sprint will support RadioShack's efforts to expand retail distribution outside of the company's stores. Better Network Diversity "We see these agreements as helping the company gain more market share and providing more revenue in the short and long term," said RadioShack spokesperson Kay Jackson, noting that Cingular uses the Global System for Mobile Communications (GSM) wireless networking standard that neither Sprint not Verizon support. Adding Nextel's products and services, pending the operator's merger with Sprint, is a significant boost for RadioShack, said Jackson, citing Nextel's network technology and push-to-talk capabilities. RadioShack will drop Verizon products and services when the five-year contract with that carrier expires at the end of this year, Jackson said. "In looking at the technology roadmap of all three carriers, we decided it was important to expand beyond CDMA (Code Division Multiple Access) and offer the GSM protocol to remain competitive," she said. Better Deal with Cingular? Wireless technology is a lucrative business for RadioShack, which is the largest indirect distributor of wireless services and products in the U.S. The company has some 7,000 retail outlets and 600 wireless kiosks. The decision to replace Verizon with Cingular might have more to do with compensation issues than with adding an alternative wireless technology, suggested Yankee Group analyst John Jackson. "The difference between GSM and CDMA is negligible to consumers, and it's likely that RadioShack is getting a better deal with Cingular," he said. Carriers want outside distributors to improve volume sales, but they also are looking to maintain more control and reduce the cost of distribution, the analyst said. "Losing RadioShack is significant for Verizon because RadioShack has a reputation for good service and they have a huge network of stores," he added. Cingular, the largest U.S. wireless operator, said it will gain more than 5,000 new sales outlets across the U.S., with RadioShack becoming Cingular's single largest distribution outlet. The carrier will sell its full line of post-paid products and GoPhone prepaid products through RadioShack stores starting in the first quarter of 2006.   Tell Us What You Think Your Comment: Also Visit: iPad Info Center Billions of Bytes Mobile Device Now Apple Info Center TopTechWire.com Advertisement  Wireless Tech 1.   Android 2.1 Update Issued for Droid 2.   Microsoft Will Rule on Phone 7 Apps 3.   Lenovo Plans Mobile-Internet Focus 4.   Palm Teeters in Crowded Market 5.   Courts Catch Up to Texting Jurors Apple Boots Wi-Fi-Finder Applications Action targets private framework APIs. Average Rating: iPhone Now No. 3 in Global Market Nokia declines and Android gains. Average Rating: Get Smart with Wireless Connections Rules for the road when going wireless. Average Rating:

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Mobile Enterprise Spotlight

Nexus One Rival Droid Gets Android 2.1 Update After rolling out its latest operating system on its exclusive Nexus One smartphone in January, Google will now release Android 2.1 for a top competitor: the Motorola Droid, distributed by Verizon.   Microsoft Will Rule on Phone 7 Apps, Require Trials Microsoft isn't going to let Apple have all the app-store fun. The software giant has outlined rules for Windows Phone 7 Series applications in its online store as it moves to get developers excited.   Lenovo Plans Mobile-Internet Business Focus Lenovo Group expects wireless Internet products to account for up to 80 percent of its sales within five years as it pursues expansion in faster-growing emerging markets, CEO Yang Yuanqing said.

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IBM Offers Software Development in the Cloud IBM is going deeper into cloud computing with beta versions of an expanded commercial cloud-based service for software development and testing, on both public and private clouds.   Tool Moves Exchange Customers To Google Apps Google is making it easier for IT administrators to switch from Microsoft Exchange to Google Apps. The Internet search giant has made available a tool to help businesses migrate from Exchange.   Intel's Xeon 5600 May Retire a Lot of 'Geezer Servers' Intel is pushing its Xeon Processor 5600 series as the most secure data-center processor on the market. The company launched the server and workstation chips on its 32nm logic technology.

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