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Cellular forums Home > Archive > Cingular cell phone service > July 2006 > Re: Verizon adds 1.8 million wireless users, Industry's No. 2 closesgap
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Re: Verizon adds 1.8 million wireless users, Industry's No. 2 closesgap
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| Lou@its.invalid wrote:
>
> Radio Shack is closing something like 471 stores nationwide so are now in even
> worse shape.
Radio Shack became too dependent on wireless sales, and the large
commission they received from the carriers. This sort of thing has
happened in the past with Radio Shack, they got dependent on CB radios,
they got dependent on the Trash-80, etc. You can't build a business
stumbling from one high margin business to the next, because eventually
the high margins go away.
Even so, Radio Shack didn't count on the huge loss in wireless business
that occurred when they switched from Verizon to Cingular. They are
still trying to promote the idea that the reseller is the most important
factor in choosing a wireless carrier, but few people are listening.
When you lose the top-rated carrier in almost every geographic area, and
switch to what is often the worst-rated carriers, you are insane to
believe that you can maintain the same level of sales.
We'll see what happens with Radio Shack and Cingular. There are escape
clauses, but what's the point now? Verizon isn't going to go back into
Radio Shack unless the terms are highly favorable, Radio Shack has no
bargaining power anymore. I don't even think T-Mobile would be
interested in Radio Shack, with all the stores that T-Mobile is opening.
It was a dumb move by Radio Shack, that is putting the future of the
company at risk.
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