Boston, MA 04/02/2014 (wallstreetpr) – T-Mobile US Inc (NYSE:TMUS) and BlackBerry Ltd (NASDAQ:BBRY) are ending the licensing agreement on account that the two do not share complementary strategies any more.
Speculations are that the disagreement rose after the T-Mobile promotion strategy displeased BlackBerry last month. BlackBerry’s current U.S. licensing agreement with T-Mobile is to expire on April 25, after which it will not be renewed.
Inappropriate Move
In February, BlackBerry Ltd (NASDAQ:BBRY)’s Chief Executive Officer and Executive Chair John Chen, wrote in a blog post that T-Mobile had sent an e-mail to BlackBerry users offering them to adopt a rival’s smartphone. Chen claimed that the Canada based mobile manufacturer was not informed of the move in advance but got to know of the issue as some customers expressed their dissatisfaction with the offer. He replied the mail from customers expressing his disappointment with T-Mobile and ensuring them that the company was completely unaware of any such advancement.
T-Mobile US Inc (NYSE:TMUS) had refrained from adding on to its existing inventory of cellphones from BlackBerry on account of declining demand in the market.
Customer Support
After the termination of the agreement in April, BlackBerry Ltd (NASDAQ:BBRY) users who deploy T-Mobile’s network will not notice any change in their service and could continue the use as usual. In fact, they will continue to get the latter’s support even after the end of the agreement. BlackBerry said that it will come up with some strategy with T-Mobile to assist its customers, who are still on T-Mobile US Inc (NYSE:TMUS)’s network or who are purchase device from the company’s current stock. BlackBerry said that it is talks with other carriers while seeking to provide a chance to its customers to switch to some other network, in case they intend to do so.
CEO Chen said that the two might be seen working together again, if at some point, these strategies fall in sync again.
