BlackBerry Ltd Users Offered $100 Credit By T-Mobile

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BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) has officially parted ways with T-Mobile US Inc (NYSE:TMUS), and now the U.S telecom carrier is doing its best to retain BlackBerry users. T-Mobile announced Thursday that it will offer $100 credit to existing BlackBerry users towards any new smartphone, including the Z10 and Q10 through this year. T-Mobile chief executive John Legere said he was disappointed with the Canadian company’s decision to split with the telecom carrier.

BlackBerry and T-Mobile’s strategies no longer complementary

On Tuesday, BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) CEO John Chen decided not to renew its contract with T-Mobile US Inc (NYSE:TMUS) when it expires on April 25. Their relationship soured in February when T-Mobile sent out an email to BlackBerry users, pitching a free iPhone 5S and saying that it was a “great offer for BlackBerry customers.” The controversy exploded when T-Mobile’s loyal BlackBerry customers expressed their anger at the offer. John Chen criticized the move as “anti-BlackBerry, inappropriate, and ill-conceived.”

At any rate, the fourth-largest U.S. telecom carrier said that it will continue to support BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) products. In February, the company launched a limited period trade-in offer of giving owners of used BlackBerry phones a $200 credit for buying a new smartphone. Those opting to buy a new Z10 and Q10 were given  $50 extra. But John Chen said on April 1 that he had to terminate the contract because the two companies’ strategies are no longer complementary.

Parting ways with BlackBerry to generate immediate cost savings for T-Mobile

However, John Chen said that BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) will continue to work closely with T-Mobile US Inc (NYSE:TMUS) to offer services to its existing customers on the network, and to new customers who purchase smartphones from T-Mobile’s existing inventory. The split is unlikely to affect the U.S. carrier in a big way. Over the past few years, the share of BlackBerry sales relative to overall sales has been declining. In fact, the move would result in immediate cost savings for T-Mobile because it was required to pay a “service access fee” to the Canadian company for every BlackBerry device it sells.

BlackBerry Ltd (NASDAQ:BBRY) (TSE:BB) stock was down 0.36% to $8.19 in pre-market trading Friday.

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Vikas Shukla
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