Monday, August 01, 2005

Verizon Wireless loses/dumps RadioShack

RadioShack, the number three electronics retailer in the US, will market Cingular instead af Verizon Wireless and extends its Sprint contract.

Bad news for Verizon, which is in the process of catching up with market leader Cingular (SBC, BellSouth). Cingular will report higher net adds, but also higher SAC's (subsciber acquisition costs), as dealer commissions must be higher. It seems that Verizon think they have enough marketing muscle without RadioShack and probably thought the latter were asking too much in terms of fees.

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