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Nextel customers who bought their cell phones from Troup Electronics Inc. are
looking elsewhere for service and accessories.
Nextel Communications, Inc., the nation’s leading provider of
digital wireless phone service, recently sent letters to more than 10,000 Nextel
cellular phone customers with accounts established through Troup notifying them
that Troup is no longer an authorized Nextel dealer.
Nextel terminated a five-year arrangement with Troup
Electronics Inc., 1510 Springport Road, when it shut down the company’s phone
service and Web site access July 26, Troup President Steve Hoover
said.
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Citizen Patriot · Megan Moor |
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David Fagan, left, 16, of Jackson is assisted by Tim Riker, a
salesperson at the Comtronics/Nextel kiosk, at the Jackson Crossing Mall on
Saturday
afternoon. | |
Hoover said it was a well-organized move that came without
notice or statement listing the infractions of the contract.
“Nextel’s actions forced us to lay off two-thirds of our work
force and legal counsel has been in place since 24 hours after this happened.”
Hoover said. “The only people they really hurt were our employees and their
families.”
Linda Jennings, Midwest director of corporate communications
for Nextel, said Troup violated its contract.
“When Nextel chooses to not work with a dealer, it’s for a
cause, that’s all we can say at this point,” Jennings said. She added that
Hoover “was made aware on numerous occasions” that Troup was in danger of losing
its contract.
“It’s in our best interest to have all our dealers be
successful,” she said.
Hoover said the termination was devastating, but the company,
established by his grandfather in 1947, has since changed its business
philosophy and will rebound from the loss.
“We’ll be just fine and it gives us the opportunity to have a
multitude of wireless carrier plans and services to better fit our customers’
needs,” he said. Nextel’s letter directed customers to other dealers, including
Comtronics, 315 Water St., and Orbit Tech, 800 Wildwood Ave.
John A. Campau, president and CEO of
Comtronics, said the company stands to profit from future equipment sales and
service on existing Nextel accounts.
“Nearly 60 percent of sales in a month are add-on sales to
existing contracts,” Campau said. “Businesses add an employee or individuals
decide to get their spouse or child a phone. That’s where we will
benefit.”
Comtronics, a Nextel dealer of more than two years, agreed to
open additional retail locations and continue expansion statewide. Comtronics
has five locations in Jackson as well as stores in Chelsea, Marshall, Kalamazoo,
Battle Creek, Charlotte and Lansing.
Campau said he reached an agreement with Meijer Inc. to
establish Comtronics kiosks in 21 Meijer stores by January. The kiosks will
offer Nextel products, alarm systems and satellite service.
A kiosk is scheduled to open at the Jackson Meijer on Airport
Road later this month. An additional seven kiosks are scheduled to open prior to
Nov. 1 in Meijer stores statewide, Campau said.
Comtronics’ expansion includes hiring additional sales and
technical support people and Campau said 20 former Troup employees were hired
and put to work less than a week after being laid off.
“We’re not happy about what happened to Troup,” he said, “but
we are very excited about what it means for us.”
Reprinted with permission from The Jackson Citizen
Patriot
Copyright September 2001
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Wireless phone provider ends agreement with Troup
Electronics, Inc. for what it says was a violation of its contract. 
