BlackBerry Breaks Up With T-Mobile After iPhone Dispute

by Christopher Freeburn | April 2, 2014 9:33 am

On Tuesday, BlackBerry (BBRY[1]) said it would not extend its licensing agreement[2] with T-Mobile (TMUS[3]).

The breakup between the struggling Canadian handset-maker and the fourth-largest U.S. wireless carrier was apparently prompted by emails sent by T-Mobile to BlackBerry device owners earlier this year touting Apple’s (AAPL[5]) iPhone 5s. Current BlackBerry device owners who subscribe to T-Mobile will not see any alteration in their service when the existing contract between the two companies expires on Apr. 25, the Associated Press notes.

T-Mobile’s iPhone promotion infuriated BlackBerry — which claims it received no warning about the offer from T-Mobile. BlackBerry CEO John Chen took to BlaclBerry’s corporate blog in February[6] to upbraid T-Mobile over the promotion. BlackBerry owners were also not amused by the iPhone promotion and criticized T-Mobile on social media.

BlackBerry indicated that it was talking with other carriers to help any current T-Mobile customers with BlackBerry devices find an alternative carrier. BlackBerry said that it would continued to support BlackBerry device owners who remain with T-Mobile.

In a statement, BlackBerry’s CEO indicated that the handset-maker was willing to do business with T-Mobile in the future, but only if their strategies were in agreement.

BBRY stock rose more than 1% in Wednesday morning trading, while TMUS and AAPL stock moved lower.

Source URL: https://investorplace.com/2014/04/blackberry-breaks-t-mobile-iphone-dispute/

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