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BlackBerry To Terminate Sales Contract With T-Mobile
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BlackBerry To Terminate Sales Contract With T-Mobile

BlackBerry announced yesterday it will bring the licensing agreement with T-Mobile U.S. Inc. to an end, once it ter...

BlackBerry To Terminate Sales Contract With T-Mobile

BlackBerry announced yesterday it will bring the licensing agreement with T-Mobile U.S. Inc. to an end, once it terminates on April 25. This means that T-Mobile won't sell BlackBerry devices anymore.

 

The decision comes after a dispute between BlackBerry and T-Mobile. In February T-Mobile offered discounts on the iPhone to customers who wanted to upgrade from BlackBerry. John Chen, the company's CEO and Executive Chair, responded in a blog post, saying he was shocked by T-Mobile's bad marketing promotion.

 

What followed is that T-Mobile offered $250 to customers if they wanted to upgrade from an older to a newer BlackBerry model, but also $200 if customers wanted to switch to a different manufacturer's phone, causing BlackBerry to lose 94% of T-Mobile users with BlackBerry devices.

 

Chen said, “BlackBerry has had a positive relationship with T-Mobile for many years. Regretfully, at this time, our strategies are not complementary and we must act in the best interest of our BlackBerry customers. We hope to work with T-Mobile again in the future when our business strategies are aligned.”

 

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The Canadian leader in mobile communications ensures that BlackBerry customers using the T-Mobile network will not be affected by the decision, and that its service and support for existing BlackBerry, as well as T-Mobile, customers, will stay the same.

 

BlackBerry is also said to be working closely with other carriers in order to provide its consumers with alternate options in case they want to change carriers and stay with BlackBerry. Chen says, “We are deeply grateful to our loyal BlackBerry customers and will do everything in our power to provide continued support with your existing carrier or ensure a smooth transition to our other carrier partners.”

 

BlackBerry had disappointing Q4 fiscal 2014 results, with a 64% decline in revenue. Still, Chen strongly believes that the company will make a comeback in revenue, probably with the return of the all-time favourite, the BlackBerry Bold. So, stay tuned.

 

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