Cingular Wireless refutes lawsuit claims

Cingular Wireless, one of the largest US mobile phone carriers, on Friday refuted claims in a lawsuit that it misled and overcharged some customers, and said it is considering coutersuing, reports Reuters.

The claims, made by the Foundation for Taxpayer and Consumer Rights and filed on behalf of seven plaintiffs, are "completely without merit," said Joaquin Carbonell, Cingular's general counsel.

The foundation filed its lawsuit on Thursday in federal court in Seattle charging that Cingular reneged on its promise to provide AT&T Wireless customers with new and better services. Cingular bought AT&T Wireless for USD 41 billion in October 2004.

Instead, Cingular "immediately began dismantling and degrading the AT&T network, forcing AT&T customers to move to Cingular's cell network," the foundation said.Cingular then forced AT&T customers to pay USD 18 to transfer or upgrade their service to its wireless network, and charged others USD 175 early termination fee if they tried to switch to another company, the group said.

"Others who didn't want to pay or couldn't afford the fees have been stuck with riding out their contract with AT&T Wireless while suffering poor to no reception," the group said in a statement.

The lawsuit says that "the amount in controversy" exceeds USD 5 million, and that the plaintiffs are seeking triple that amount in damages.Cingular said it is considering its options including filing a counter-suit.

Cingular said it spent nearly USD 10 billion to integrate and improve its networks over 21 months since the merger was completed.