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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.

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.

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.

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