OKLAHOMA CITY-RadioShack Corp. customers in seven states will be able to purchase cellular phones and services from Dobson Communications Corp.’s wireless subsidiary, Dobson Cellular Systems, under the Cellular One brand.
The new distribution agreement, announced by Dobson, involves 54 RadioShack stores in markets primarily served by the GSM carrier and not its largest roaming partner, Cingular Wireless L.L.C. RadioShack recently signed a 10-year agreement to sell Cingular products and services in its locations nationwide, replacing Verizon Wireless. RadioShack also sells postpaid services from Sprint Nextel Corp. as well as a handful of prepaid offerings.
Most of the stores which will now sell Dobson’s Cellular One offerings are in New York and Pennsylvania, with others in Kentucky, Minnesota, Texas, West Virginia and Wisconsin.
According to Dobson, RadioShack dealers in Dobson markets will have a chance to become Cellular One distributors; Dobson said it would review each location prior to approval as a distributor. Dobson’s main distribution channel is its own stores, which serve its markets in 16 states. The company also does direct sales and sales through agents and dealers.
“RadioShack will provide Dobson with a much stronger presence in key shopping malls and other retail locations. We expect this new distribution agreement to enhance our growth in the dealer channel,” said Steve Dussek, Dobson’s president and chief executive officer. “In addition, the agreement complements our long-term relationship with Cingular Wireless.”
