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BlackBerry and T-Mobile Call It Quits

As the famous song would have us all believe, "Breaking up is hard to do." And while that might have held true for your high school sweetheart, it certainly wasn't the case for tech and telecom players BlackBerry (NASDAQ: BBRY  ) and T-Mobile (NYSE: TMUS  ) ; they unceremoniously severed business ties last week after months of bad blood and bad press had torn the two apart.

So now, in the wake of this front page split, the question remains whether this will affect either BlackBerry's or T-Mobile's business going forward.

Source: BlackBerry

Never ever getting back together
In sizing up the significance of the breakup between BlackBerry and T-Mobile, it's probably safe to say that neither BlackBerry nor T-Mobile will miss the other all too much, which bodes well for shareholders in either company.

For BlackBerry, its recent efforts have largely focused on decoupling and then scaling its software from its dying handset business under new CEO John Chen. In T-Mobile's case, BlackBerry handsets haven't been exactly flying off the shelves, as we saw, once again, during BlackBerry's recent quarterly report.

In the video below, tech and telecom analyst Andrew Tonner looks at this storyline in greater detail, and explains why neither BlackBerry nor T-Mobile shareholders have much to worry about with this high profile parting of ways.

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  • Report this Comment On April 11, 2014, at 11:32 AM, cbglobal wrote:

    Just to bring you up to speed on reality; T-Mobile is changing its business model into a BYOD shop (bring your own device). So anyone, anywhere can buy a Blackberry phone from anyplace, and as long as it will run on T-Mobile's network (same at ATT), they can and will continue to be able to use a Blackberry on T-Mobile.

    Secondly, being a BYOD business, means T-Mobile will not be supporting any company's model phone in the future. But for now, they need to sell all those iPhone they contracted to purchase and sell.

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Andrew Tonner

Andrew Tonner is a tech specialist for The Motley Fool. He is a graduate of The University of Arizona with a degree in Finance.

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9/2/2015 1:07 PM
BBRY $7.35 Up +0.01 +0.14%
BlackBerry CAPS Rating: *
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T-Mobile US CAPS Rating: ***