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cingular wireless accused of deceiving customers

Published:

SEATTLE (July 7) - Cingular Wireless Corp. promised to provide uninterrupted service to AT&T Wireless customers when it acquired that company in 2004, but instead it nickel-and-dimed them and degraded their reception in an effort to persuade them to sign new contracts, a federal lawsuit says.

   


An attorney displays cell phone records of Amy Frerker, who says her service worsened after AT&T Wireless merged with Cingular Wireless in 2004. "It's like purchasing a Mercedes and getting a Hyundai," she said.

   

The lawsuit, which alleges breach of contract and violations of consumer protection laws, seeks class-action status on behalf of the more than 20 million customers AT&T Wireless had at the time of the merger. Many paid $18 "transfer" fees to switch to Cingular plans and were required to buy new phones or pay other fees, said the complaint filed in U.S. District Court in Seattle.

"Everyone who signed an AT&T contract had their service degraded," attorney Mike Withey said at a news conference Thursday.

Atlanta-based Cingular acquired Redmond-based AT&T Wireless Services Inc. for $41 billion in October 2004, and promised in advertisements and news releases that the customers of both companies would see uninterrupted and even improved service as a result of the "combined network."

   
   
Withey argued that instead, Cingular stopped maintaining AT&T Wireless network facilities. In addition to the accounts of his clients, he cited news articles in which industry analysts said Cingular appeared to be investing little or nothing in the AT&T Wireless network. That breached the contracts AT&T Wireless had with its customers, he said.

Cingular spokesman Clay Owen said Thursday the company had not had a chance to review the lawsuit. He acknowledged the company eventually plans to phase out the older cell phone technology used by the AT&T Wireless network, called TDMA, but insisted that it is still maintaining that system for now. The overwhelming majority of Cingular's 55.8 million customers use a newer GSM system, and many companies no longer make TDMA-compatible phones, he said.

Cingular spent $6.5 billion on network improvements and integration last year, and has budgeted the same amount this year, Owen said. He did not have figures for how much of that was spent maintaining the AT&T Wireless network.

One plaintiff, Amy Frerker, a 28-year-old Seattle architect, said that shortly after the merger she began noticing that she no longer had cell reception in areas she once did. Over the next year and a half, she said, Cingular told her she would have to sign a new contract; live with her current cell service, which was being phased out; or pay a $175 termination fee to get out of her contract.

   


   
Finally, last week, the company let her out of her contract without charge, Frerker said. She switched to T-Mobile.

"On my commute to work I started to notice I was getting more dropped calls," she said. "It's like purchasing a Mercedes and getting a Hyundai."

Last month, a California state appeals court upheld a $12.1 million fine against Cingular for signing up customers faster than it could provide service and for imposing hefty cancellation fees without a trial period. The court also said Cingular must refund up to $10 million to people who were forced to pay as much as $550 to cancel their contracts.

Five of the seven named plaintiffs in the Seattle lawsuit are California residents. The lawsuit, based on complaints received by the Foundation for Taxpayer and Consumer Rights in Santa Monica, seeks up to treble damages for fees and charges paid by the AT&T Wireless customers.


Entry #584

Comments

1.
starchild_45Comment by starchild_45 - July 8, 2006, 3:38 am
this is so true. i had to change my plan to make things work with cingular. too bad i can't be in on this. i will wait and see if they send out a mailing for me to join in the lawsuit. i can get my $10. lol.
2.
LOTTOMIKEComment by LOTTOMIKE - July 8, 2006, 3:47 am
sorry you had to do that starchild.i have been with a regional company here in the south for nearly 5 years and i love it.unlimited minutes,free long distance,roaming.the company is cellular south and they've done me good.thank goodness i never tried cingular or verizon.i've heard bad about both.......
3.
csfbComment by csfb - July 8, 2006, 9:03 am
I have been with cingular since 1994 (my first server) and I'm still with cingular today. I'm quite satisfied with their service and I can't say I had many dropped calls. Maybe just a couple of times.
4.
konaneComment by konane - July 8, 2006, 10:59 am
I began with BellSouth Mobility which morphed into Cingular and wouldn't change for anything.

Hubby was with AT&T which unilaterally discontinued his calling plan. He switched to Cingular and also wouldn't change.

Very sad to see BellSouth and Cingular being sold to AT&T due to hubby having previous service problems with their cell service, also exceedingly poor delivery when they had cable tv, internet service in the area before selling to Comcast.

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