Some unhappy over switch to AT&T
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By BRUCE EDWARDS Rutland Herald Staff - Published: September 18, 2009
Former Unicel customers are complaining that AT&T Wireless is failing to offer comparable cell phone plans and that the company in some cases is charging a penalty if they switch to another cell phone provider. The state Department of Public Service has received 238 complaints since January, when AT&T Wireless took over Unicel's Vermont service territory.
According to the PSD, a large number of those complaints are from Unicel customers who say AT&T Wireless is offering them more expensive plans when comparable plans designed specifically for Unicel customers are available.
When AT&T acquired the Vermont territory, the company said it would offer Unicel customers who switched to AT&T comparable cell phone plans at comparable prices.
"You had Unicel customers under contract and when AT&T took them over, basically AT&T wasn't offering equivalent service at equivalent prices," said Richard Smith, deputy commissioner of the Department of Public Service.
AT&T designed several individual and family plans for Unicel customers, including an individual regional plan that includes 800 anytime minutes and 1,000 nights and weekends for $40 a month (plus a 40 cent-per-minute roaming charge).
The standard AT&T plan with rollover minutes that comes closest in price is a $40 plan with 450 minutes, 5,000 minutes on nights and weekends, and unlimited mobile-to-mobile to other AT&T customers. There's also a 900-minute plan for $60 a month, unlimited nights and weekends and unlimited mobile-to-mobile. There are no roaming or long-distance charg\es with the standard AT&T plans.
During the one-year transition period that began in January, Unicel customers must choose either AT&T or another provider by Dec. 22, when Unicel ends service in the state. But the department also has received complaints that AT&T is charging an early contract termination fee if Unicel customers switch to another cell phone provider other than AT&T.
Vermont Assistant Attorney General Elliot Burg said the Consumer Assistance Unit is aware of the problems. Burg declined further comment on what if any action his office might take except to say complaints are being forwarded to the PSD.
Smith said in a subsequent e-mail that the PSD has been monitoring the transition closely as it affects more than 120,000 Unicel customers in the state. He said the department is working with AT&T to resolve many of the issues.
However, when it comes to cellular phone companies, Smith said states have no regulatory authority over the industry.
By comparison, in all of 2008 the department received a total of 30 Unicel-related complaints. The department has also received 32 consumer complaints this year against Verizon Wireless, the state's other dominant cell phone provider.
Although AT&T Wireless has set up several single and family plans comparable to what Unicel offered, the PSD said there apparently has been a breakdown in communication in getting that information to customers.
"The AT&T staff in the stores don't have access to the same information that the (customer service representatives) on the phone or the corporate people we're talking with have," said Tamera Pariseau, the PSD's coordinator of consumer affairs.
She added that AT&T has duplicated some but not all of Unicel's plans.
Asked whether it was appropriate for AT&T to charge a contract termination penalty when Unicel customers have no choice but to choose another carrier, Pariseau said, "That's one of the things we've been talking to them about."
Aleda Dutton of Always Vermont Real Estate in Castleton is one Unicel customer who switched to Sprint and is now facing a penalty.
Dutton said an AT&T customer service representative told her that "if we went to anyone other than AT&T there would be a charge for terminating the (Unicel) contract early."
Dutton said her Unicel contract, which ends next June, calls for a $200 penalty.
There have been other complaints as well.
AT&T expects to upgrade the Unicel system to a faster 3G network by the end of the year. But Bill Jalbert of Rutland, who switched from Unicel to AT&T, is frustrated with the slow download speeds on his iPhone. Jalbert said he's forced to pay $30 extra a month for what he calls poor data service.
AT&T spokesman David Mancuso said the company does not believe there are significant problems with the Unicel transition.
Mancuso said all AT&T customer service representatives are instructed to inform Unicel customers of their options, including the availability of comparable plans that mirror several Unicel plans. He said the plans being duplicated were the ones held by the majority of Unicel customers.
"Even at the 238 (complaints), the number is very small relative to the six-figure number of customers that are involved in a very complex transaction that took place very quickly at the start of this year," Mancuso said in an e-mail. "We are working closely with every former Unicel customer to help them understand the requirements of their individual service plan and their options with AT&T."
The company also has sent out mailings to Unicel customers detailing the comparable plans.
Mancuso reminded customers who switch to AT&T that they have 30 days to change their mind without penalty.
Two years ago, Verizon Wireless agreed to acquire Unicel for $2.67 billion but Vermont regulators objected, saying that, since Verizon was already the dominant cell phone company in the state, the deal would effectively leave Vermont with only one major cell phone provider.
As part of a divestiture agreement involving the Department of Justice, Verizon Wireless and Unicel's parent company, Rural Cellular Communications, AT&T acquired Unicel's Vermont network.
bruce.edwards@rutlandherald.com
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