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Cingular Sued for Deception

Cingular 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, according to a federal lawsuit filed on behalf of those customers.

The lawsuit claims consumers faced excessive fees, poor service, dropped calls and a network that has not been maintained, part of a campaign to push former AT&T Wireless customers to switch to Cingular.

Cingular bought AT&T's cell phone system in October 2004, after assuring federal regulators that the merger would be "seamless." But, the lawsuit contends, instead of the new and better services that Cingular promised AT&T customers, Cingular immediately began dismantling and degrading the AT&T network, forcing AT&T customers to move to Cingular's cell network.

That meant buying new phone equipment, moving to higher cost plans, and, in some cases, an $18 "transfer" or "upgrade fee." Some customers who tried to go to another company were hit with "early termination fees" of $175. Others who didn't want to pay or couldn't afford the fees have been stuck with riding out their contract with AT&T Wireless while suffering poor to no reception.

The lawsuit was filed in U.S. District Court in Seattle, Washington on behalf of all AT&T Wireless customers who were deceived or overcharged by Cingular's actions related to the merger.