RadioShack Drops T-Mobile for Verizon

RadioShack has announced that come fall it will no longer offer T-Mobile wireless products and services. Instead, they'll be providing customers with a selection of Verizon Wireless smartphones.

After entering an agreement with Verizon, the nation’s largest wireless carrier, RadioShack decided to cease all sales of T-Mobile merchandise as of September 14. The technology retailer will stock its 4,300 of its U.S. company-operated stores with post-paid and pre-paid wireless products and services from Verizon beginning September 15. 

This decision comes less than six months after RadioShack claimed that T-Mobile USA had “materially breached” their contract. The retailer also cites the nation’s fourth largest carrier had been a drag on profits, stating T-Mobile product offerings were not competitive with those of other carriers. 

RadioShack also reported a dip in quarterly profit, where net income fell to $24.9 million, in the second quarter, from $53.0 million a year ago. 

Though the carrier recently launched a new line of Value plans for customers, this undoubtedly comes as an economic blow. With this loss of presence in the mobile community, T-Mobile’s buy out by AT&T is considered by some analysts as the best option for the carrier at this time. However, the acquisition still faces approval by the FTC.