Radio Shack Not Waiting For Merger; Replacing T-Mobile With Verizon Wireless

Radio Shack announced this morning that they were going to start selling Verizon Wireless post-paid and prepaid products and services.  This change will occur on September 15th.  The catch, Radio Shack will stop selling T-Mobile post-paid and prepaid products and services on September 14th.

This news comes on the heels of Radio Shack reporting a 53% net income slide from the same quarter last year. It may also be a result of the pending AT&T and T-Mobile merger. It’s no secret that since the proposed merger announcement in March T-Mobile has seen a huge decline in sales, even at their corporate store locations.  Some of their corporate stores have turned into cell phone ghost towns.

More after the break

Radio Shack will convert counter space previously occupied by T-Mobile, to Verizon Wireless across 4300 stores nationwide.

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.”

Verizon Wireless seems equally excited about this new partnership as CEO Dan Mead 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.”

Nothing will change as far as AT&T and Sprint is concerned at Radio Shack stores. Radio Shack has become a destination to purchase wireless phones, products and services across the country. With Radio Shack’s large number of locations, they’ve been able to secure exclusive release dates, promotions and pricing across their mobile carriers.

Source: Radio Shack via BGR