RadioShack continues musical carriers: ditches T-Mobile USA for Verizon Wireless

UPDATED: RadioShack Corp. (RSH
) is set to jump back in bed with Verizon Wireless (VZ) at the expense of its long-term relationship with T-Mobile USA Inc. (DTEGY)
The electronics retailer said that beginning Sept. 15 it will begin offering Verizon Wireless’ postpaid and prepaid services at its more than 4,300 company-owned stores across the country and through its website. At the same time it will stop selling T-Mobile USA products.
RadioShack stopped selling Verizon Wireless products in 2005, choosing instead to offer wireless products and services from Cingular Wireless L.L.C. Verizon Wireless used the move to increase its retail presence at third-party retailers like Circuit City, Best Buy and Costco.
RadioShack put some of the blame for a 30% drop off in first quarter profits on T-Mobile USA, and told the wireless carrier that it had “materially breached” its contract. While a diverse electronics retailer, RadioShack has often cited poor sales of wireless services for tough operating quarters.
“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,” noted Jim Gooch, president and CEO of RadioShack. “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.”
RadioShack currently sells wireless services for AT&T Mobility, Sprint Nextel Corp., T-Mobile USA, Tracfone Wireless Inc., Virgin Mobile USA and Boost Mobile.
T-Mobile USA noted in a statement that the move will help the carrier better align the “effectiveness of our retail network and in line with our sales strategy. … We are currently focused on higher return national retailer opportunities and we expect to announce new channel growth in the coming weeks, which will more than double the number of RadioShack doors currently offering T-Mobile products and services.”
T-Mobile USA’s loss at RadioShack could also be just a temporary blip though as the carrier is in the process of a possible acquisition by AT&T Inc.