AT&T Wireless Sued Over Poor Network

[Mike Temporale]

<div class='os_post_top_link'><a href='http://story.news.yahoo.com/news?tmpl=story2&u=/nm/20040528/bs_nm/telecoms_att_lawsuit_dc' target='_blank'>http://story.news.yahoo.com/news?tmpl=story2&u=/nm/20040528/bs_nm/telecoms_att_lawsuit_dc</a><br /><br /></div>"Two California women have sued AT&T Wireless Services Inc. claiming the cellphone company got too big too fast and let the quality of its service slip. The phone company then prevented dissatisfied customers from taking their business elsewhere by instituting early termination fees of up to $175 in its contracts, the lawsuit, filed in Los Angeles Superior Court on Thursday, said. The proposed class action contends that AT&T overloaded its new GSM network by adding 3 million new users starting in 2002 but "failed to add coverage and capacity sufficient to keep pace with the ... increases in customers and monthly usage. In short, AT&T deliberately spurred demand that it knew it could not meet while continuing to require customers to pay an early termination fee to be released from AT&T's inadequate and unreasonable service," the lawsuit said."<br /><br />AT&T is working hard to make sure they keep their name in the news. :roll: What I find funny is that the termination fee is directly related to the subsidize phone provided to them from AT&T. If the phone had been purchased outright, then there would be no need for an early termination fee. Thus customers would be able to switch carriers whenever they feel that the carrier is not doing a good job at keeping them happy.

[brianchris]

What I find funny is that the termination fee is directly related to the subsidize phone provided to them from AT&T. If the phone had been purchased outright, then there would be no need for an early termination fee. Thus customers would be able to switch carriers whenever they feel that the carrier is not doing a good job at keeping them happy.

I don't believe that is entirely true. Its my (perhaps incorrect) understanding that, with most (if not all) US GSM carriers, a contract is required regardless of whether you already had a compatible phone, or recieved a purchase subsidy for a new phone. The only US GSM service that does not require any sort of contract is pre-paid service. And, unfortunetly, the early termination fee is to get out of the contract that is needed for all but pre-paid service.

Although I'd LOVE to be proved wrong, you describe things as they should be, not as they are :(

[Mike Temporale]

Fido (here in Canada) does not require you to sign a contract. When you sign up, you can either purchase the phone at the full price (no contract) or get a discounted price (with 2 year contract). If you take the first option there is no early termination fees. I just assumed that other carriers had this option too. I guess that's not the case.

[brianchris]

Fido (here in Canada) does not require you to sign a contract. When you sign up, you can either purchase the phone at the full price (no contract) or get a discounted price (with 2 year contract). If you take the first option there is no early termination fees. I just assumed that other carriers had this option too. I guess that's not the case.

Yep....any new GSM serivice (except pre-paid) in the USA requires a new contract, even if you BYOP (bring your own phone) :evil:

Sounds like Fido is doing things the right way. And the offer still stands for someone to correct me if I'm wrong.

[aristoBrat]

From reading over at HowardForums, I'm pretty sure that Cingular doesn't require a contract if you BYOP.

[ShivShanks]

I don't believe that is entirely true. Its my (perhaps incorrect) understanding that, with most (if not all) US GSM carriers, a contract is required regardless of whether you already had a compatible phone, or recieved a purchase subsidy for a new phone. The only US GSM service that does not require any sort of contract is pre-paid service. And, unfortunetly, the early termination fee is to get out of the contract that is needed for all but pre-paid service.

Although I'd LOVE to be proved wrong, you describe things as they should be, not as they are :(

You are correct. In fact, regardless of technology, the only US carrier which allows you a month to month contract without yearly contracts is Sprint PCS and this is one of the reasons I like them. Of course you have to pay about $10 a month extra for this option, but I personally value my freedom to bolt from a service when they don't measure up to be worth the pain of paying a bit extra. If need be, that $10 per month will pay itself many times over if I need to jump ship. Plus Sprint gives me a corporate discount and that mitigates for it.

Some people here seem to be confusing the initial sign up contracts with the situation later on when your first contract expires and then you are on month to month. That is different from signign up for the first time. No US carrier other than Sprint allows you a month to month contract when you sign up as a new customer. And that is what you'll be when you'll be signing up after jumping ship and it is at that time that you really need the contractless option.

[aristoBrat]

Some people here seem to be confusing the initial sign up contracts with the situation later on when your first contract expires and then you are on month to month. That is different from signign up for the first time. No US carrier other than Sprint allows you a month to month contract when you sign up as a new customer.
Incorrect.

If you bring your own equipment to Cingular, unless you pick a promotional rate plan, there is NO CONTRACT or COMMITMENT (or monthly surcharge).

http://www.howardforums.com/showthread.php?s=&threadid=357998

That thread's a month old, so I called 1-866-CINGULAR and the sales rep said the same thing. She did warn that a T-Mobile SIM may not work, which would require a $24.99 Cingular SIM purchase, but still no contract/commitment.

[ShivShanks]

Some people here seem to be confusing the initial sign up contracts with the situation later on when your first contract expires and then you are on month to month. That is different from signign up for the first time. No US carrier other than Sprint allows you a month to month contract when you sign up as a new customer.
Incorrect.

If you bring your own equipment to Cingular, unless you pick a promotional rate plan, there is NO CONTRACT or COMMITMENT (or monthly surcharge).

http://www.howardforums.com/showthread.php?s=&threadid=357998

That thread's a month old, so I called 1-866-CINGULAR and the sales rep said the same thing. She did warn that a T-Mobile SIM may not work, which would require a $24.99 Cingular SIM purchase, but still no contract/commitment.

Well then this must be something fairly new. It certainly wasn't the case a while ago and/or Cingular certainly doesn't talk about it or easily show this option on their website when you signup unlike Sprint which clearly gives you an option for month to month when you sign up online.

Also what if you are a new customer who wants to sign up for one of the cool new phones being offered? Sprint allows you to signup for any of the new phones and doesn't prevent access to any of the promotional rate plans. So IMHO Sprint is still superior in terms of giving its new users choice.

[aristoBrat]

So IMHO Sprint is still superior in terms of giving its new users choice.
The question at hand was "do any US GSM carrier provide month-to-month contracts?", not "which US carrier has the best month-to-month contracts?"

My point to you is that Sprint is not the only US carrier offering month-to-month contracts.

[ShivShanks]

So IMHO Sprint is still superior in terms of giving its new users choice.
The question at hand was "do any US GSM carrier provide month-to-month contracts?", not "which US carrier has the best month-to-month contracts?"

My point to you is that Sprint is not the only US carrier offering month-to-month contracts.

Okay fine. But the fact of the matter is that if Cingular hides this and hardly anyone knows about it, then I don't really consider it an option that any normal person would be aware of. 99% of the people going to sign up for Cingular would be unaware of this option.