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Friday, November 10, 2006

CellStar Obtains Extension of Motorola Distribution Agreement in Latin America

CellStar provided a press release yesterday indicating that it had again extended its distribution agreement with Motorola. 

A monthly agreement between the two companies kicked off in June 2006 and has been renewing monthly.  This contract will expire at the end of the year on December 31, 2006.

CellStar indicates that it is continuing to work with Motorola to complete new distribution agreements, presumably longer in term than a monthly renewal.

The temporary agreement comes in the middle of the Christmas season and before the year end reset for both companies.  It will be interesting to see how Motorola handles the agreement with CellStar a partner for more than a decade in wireless handsets.