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Carrier/Dealer relationship still fundamentally flawed?

15 февраля 2007
According to a report in RCR News, Verizon Wireless won an initial injunction against reseller CellTex Cellular, also known as Bee Cellular, which the carrier claims reneged on its agreement to be an exclusive Verizon Wireless dealer. Bee Cellular contends that Verizon Wireless ruined its lucrative deal with Cingular Wireless by convincing it to sign an exclusive contract without disclosing debilitating policies, which pushed Bee to the edge of bankruptcy. Bee cited the carrier's "extremely high rate of credit refusals" as a prime factor in its financial ruin. Bee is prohibited from selling Verizon products until the case is resolved.

The relationship between the wireless carrier and the independent dealer has become increasingly contentious over the past few years as wireless operators rely more on direct distribution channels such as their own stores and their websites. Consequently dealers are feeling a lot of pressure. Many dealers are upset because they basically helped build the business in the early days of wireless and now some are finding that their businesses are not nearly as lucrative as they once were.



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