Commentary
Former Cingular Customers In California Win $160 Each
Well, OK, only a handful of about 115,000 former subscribers. The $160 will be disbursed to disgruntled ex-Cingular customers who filed a massive lawsuit against the company. Cingular settled with the California Public Utilities Commission for $18.5 million yesterday and will pay out the reimbursements within 60 days.Well, OK, only a handful of about 115,000 former subscribers. The $160 will be disbursed to disgruntled ex-Cingular customers who filed a massive lawsuit against the company. Cingular settled with the California Public Utilities Commission for $18.5 million yesterday and will pay out the reimbursements within 60 days.Sometimes growth is a bad thing. The number of Cingular subscribers grew so fast in California between January 2000 and April 2002 that the surge wreaked havoc on its network. Tens of thousands of customers were often unable to make or receive calls, and if they did, were disconnected frequently. Dissatisfied with the service they were receiving, customers left in droves, only to be slapped with early contract termination fees.
California regulators took Cingular to task, saying it didn't give customers a reasonable amount of time to assess their service and cancel their contracts. That two-year period saw Cingular's subscribers double from 1.5 million to 3 million in that area, straining the networks.
More Mobility Insights
White Papers
- The BlackBerry PlayBook tablet's Good Bones - by BlackBerry
- New Visual and Wizard-Driven Paradigms for Exploring Data and Developing Analytic Workflows
Reports
- Mobility’s Next Challenge: 8 Steps to a Secure Environment
- Time to Move: How to Ensure 'Mobility' Translates to 'Agility'
Webcasts
- Maximize ROI with Database Consolidation onto Private Clouds
- The ABC's of Cloud Computing in the Midmarket
The $160 refunds will be provided to cover the fees that the former customers were charged for ending their contracts early.
"While we have a strong case for appeal, it is time to move forward," Cingular said in a statement. "Cingular's business practices have changed significantly since the period in question, and the company is now the industry leader in customer-friendly initiatives."
Cingular offers customers up to 30 days to return their phones and drop their service without penalty.
Related Reading
| To upload an avatar photo, first complete your Disqus profile. | View the list of supported HTML tags you can use to style comments. | Please read our commenting policy. | |
|
|
T-Shirt Giveaway: Each week we're selecting one great comment from our readers. The author of the comment will receive an InformaitonWeek Community t-shirt. So get posting! |
Subscribe to RSSResource Links
This Week's Issue
Technology Whitepapers
- Mobile BI: Actionable Intelligence for the Agile Enterprise
- Creating the Enterprise-Class Tablet Environment - by Yankee Group
- The BlackBerry PlayBook tablet's Good Bones - by BlackBerry
- Red Alert: Why Tablet Security Matters - by BlackBerry
- New Visual and Wizard-Driven Paradigms for Exploring Data and Developing Analytic Workflows
Featured Resource
This white paper focuses on the critical need to manage outbound content sent via various avenues including email, Instant Messages, text messages, tweets, and Facebook posts. Read More












