DALLAS RadioShack has entered into 10-year and 11-year agreements with Cingular Wireless and Sprint PCS, respectively, to be the retailer's long-term wireless providers in RadioShack stores nationwide.
Cingular and Sprint have also committed to support the Fort Worth, Texas-based retailer's strategy of expanding retail distribution outside of the core RadioShack stores, the company said.
"First and foremost, our negotiations were focused on improving the economics of the RadioShack-store wireless business and on assuming a more significant role in the carriers' overall distribution strategy," said David Edmondson, president and chief executive officer of RadioShack. "We believe these new agreements will help RadioShack secure a larger share of the increasing value of the wireless industry."
The Cingular agreement gives RadioShack an entrance into the GSMC (Global System for Mobile Communication) protocol, the standard in wireless phones. The Sprint pact provides the company with the CDMA (Code Division Multiple Access) protocol, along with the introduction of IDEN (Integrated Digital Enhanced Network) technology through Nextel.
Beginning this fall, RadioShack will offer Nextel products and services pending regulatory approval of its merger with Sprint, the company said. Cingular products and services will become available in January 2006.