Tech Data Taps Into European Wireless Trade

By Richard Mullins, Tampa Tribune, Fla.

Feb. 2–TAMPA — Tech Data Corp. is moving to enter the fast-growing European market for cell phones and wireless data links.

The Clearwater-based computer distributor plans to form a joint venture in Europe with Brightstar Corp., a major wireless equipment distributor based in Miami.

By March, Tech Data and Brightstar hope to open Brightstar Europe, based in London, which will provide mobile phones, smart phones and accessories to retailers and customers such as mobile operators throughout Europe.

Tech Data employs about 1,600 people in the Tampa Bay area, and though it is one of the world’s largest distributors of technology equipment, this represents Tech Data’s first move into the wireless market, Chief Executive Bob Dutkowsky said.

The European market is developing quickly, and people there tend to switch cell phones once if not two or three times a year, Dutkowsky said. With that trend, and the growth of smarter cell phones that link to corporate networks, Dutkowsky said the market was too dynamic to ignore.

Tech Data recently upgraded its warehouse and distribution system across Europe — yet had little if any wireless products in its lineup, Dutkowsky said.

By contrast, Brightstar focuses primarily on wireless equipment and has contacts with most of the large wireless and equipment and accessory makers. The joint venture will focus on distributing Brightstar’s product through Tech Data’s network of warehouses and resellers.

“Neither of us could do this on our own,” Dutkowsky said.

Research firm IDC estimates that shipments of phones in Europe, the Middle East and Africa could reach 400 million units in 2007, representing annual growth of 12 percent, and potentially 475 million units by 2010.

Financial terms of the deal were not disclosed. Tech Data stock rose 44 cents to $37.58 on Thursday on the Nasdaq Stock Market.

Reporter Richard Mullins can be reached at (813) 259-7919 or rmullins@tampatrib.com.

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Copyright (c) 2007, Tampa Tribune, Fla.

Distributed by McClatchy-Tribune Business News.

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