BlackBerry Ends Licensing Deal With T-Mobile

The once dominating smartphone maker, BlackBerry Ltd has announced that its license with T-Mobile that allows the carrier to sell its products will be expiring this month and the Canadian firm has no intention of renewing it. This announcement was made by BlackBerry after it had a spat with T Mobile in February. The fourth largest carrier in the US had started making promotions of Apple’s iPhone 5s to their BlackBerry customers. John Chen, the chief executive officer of BlackBerry stated in a blog post in February that not just the company itself, but even loyal customers were simply outraged because of this action of T-Mobile and were not happy with the move made by the carrier.

Be Where your Customers are $1.99 / mo hosting for 12 months!-
Discussing the email promotion of T Mobile, Chen said that the whole incident was puzzling because the carrier did not speak with the company before or after they had launched this ill-conceived and inappropriate promotion. At the time, the CEO of T Mobile, John Legree had announced that the carrier would continue to provide support to BlackBerry products. The license of T Mobile and BlackBerry will expire on April 25th and the Waterloo, Ontario based firm has no intention of renewing the license that allows the carrier to sell BlackBerry products.

In a statement, Chen said the strategies of the companies were no longer complementary due to which they were separating their paths. However, he also added that they would work with the carrier in the future if their strategies aligned. BlackBerry further asserted that they would continue to work with T Mobile for providing the best possible customer service to the customers that would be left on the carrier’s US network. The same would be provided to customers who would purchase the company’s devices from the existing inventory of the carrier.

The market share of the company has dwindled considerably. Research firm IDC has revealed that the worldwide share of smartphone operating system of BlackBerry was about 0.6% in the fourth quarter of 2013, which amounted to 1.7 million units as compared to the 3.2% share of 7.4 million units the company had enjoyed in the same quarter last year. The firm also said that BlackBerry operating system was the only one that had a negative year-over-year change for the year and for the quarter as well. In the February blog post, Chen had addressed T Mobile and said that once their partnership had been both profitable and productive for both T Mobile and BlackBerry.

Mr. Chen had also said he hoped that they could find a way to work in the future for the purpose of servicing the shared customers in the best possible way. However, it is clear that the rapprochement did not happen because of the turn of events. It is defined as the end of an era and this squabble has simply ended the agreement between the two firms. Even the loyal customers had been angry at the carrier for organizing the campaign that promoted Apple’s iPhones to customers using BlackBerry devices.