Wireless carrier complaints jump 38%; Cingular, AT&T top complaint list

Washington, D.C., March 30, 2005 -- (MobileVillage) -- Cingular and AT&T Wireless, which merged late last year to form the U.S.' largest cell phone company, have the worst combined complaint record for 2004, according to records obtained by Consumers Union from the Federal Communications Commission (FCC.) AT&T Wireless also had the worse complaint record for two years running, the data showed.

The total number of complaints filed about wireless phone service also increased nearly 38 percent from 2003 to 2004, according the FCC's website. Complaints rose from 21,357 in 2003 to 29,478 in 2004.

"Since the cell phone industry brought out its 'voluntary consumer code,' consumer complaints have skyrocketed, which shoots down their claim that the marketplace is working and consumer rights' laws aren't needed," says Janee Briesemeister, senior policy analyst for Consumers Union, non-profit publisher of Consumer Reports. "The numbers don't lie – there continues to be a problem, and its getting worse, not better."

Of the more than 29,000 complaints filed in 2004, Cingular-AT&T Wireless ranked first among the top eight carriers both on a total complaint basis (combining each company's complaint record prior to and after the merger), and in complaints adjusted to account for differences in the number of subscribers. The combined complaints for Cingular-AT&T Wireless came in at 289 per million customers.

One major factor behind AT&T Wireless' poor showing last year: complaints about problems with number portability, or moving a cell-phone number to another carrier. It was widely reported last year that AT&T Wireless customers had an especially difficult time moving numbers.

Of the national wireless companies, Verizon had the fewest complaints per million, at 76. Overall, regional carrier US Cellular has the lowest number of complaints per million subscribers, at 39.

Smaller regional carriers, such as ALLTEL and U.S. Cellular, had some of the lowest complaint rates. But Cellular One, another regional company, had the second-worst rate for total complaints and for billing problems. ALLTEL has announced plans to buy Cellular One.

For all of the major cell phone companies, consumers complained the most about billing problems. Complaints about transferring their phone numbers, service quality, contracts and marketing were close behind.

"Consumers want to know which companies are generating the most complaints about billing, service and coverage before they sign a long-term contract," Briesemeister says. "Companies will have an incentive to improve if they know consumers can check out their service records."

Even though the FCC – which currently is the only regulatory agency overseeing wireless service – fields consumer complaints, it does not disclose that information to help shoppers make informed decisions. Consumers Union is supporting legislation in several states, most notably California, that would give state regulators, not just the FCC, the ability to deal with customer complaints about the wireless industry.

The above ratings were based on a fall 2004 survey of subscribers to ConsumerReports.org. The FCC accepts complaints but does not routinely publicize complaints by carrier. Consumers Union filed a Freedom of Information Act request to obtain the information.

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