Lawsuit: Cingular deceived former AT&T customers

SEATTLE — 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 said Thursday.

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.