AT&T Wireless Blames Software Glitch for Losses

January 23, 2004
AT&T Wireless has confirmed what its customers have been saying: its customer-service software had massive problems in recent months. The company made the admission as it officially put itself up for sale.

Executives said installation of a new software system was bungled, causing the company to sign up only 128,000 new subscribers in the last quarter of 2003, several hundred thousand fewer than expected. It cost $100 million to correct the problem.

The process of signing a new customer or making changes to an existing account, which normally takes a few days at most, wound up taking three weeks or more in some cases, chief executive John D. Zeglis said.

To make matters worse, the foul-up occurred just as new federal rules allowing customers to take their numbers with them when they change carriers went into effect.

During the first weeks of "number portability," AT&T Wireless lost more customers than it gained, Zeglis said. Many customers who tried to switch to AT&T Wireless gave up and went to other carriers. Even customers trying to switch away from AT&T, like Anthony of Austin, had problems.

Cingular and other companies are pursuing a takeover of AT&T Wireless, which was spun off from AT&T in 2001.

Back to the top |

Terms of Use Your use of this site constitutes acceptance of the Terms of Use

Advertisements on this site are placed and controlled by outside advertising networks. ConsumerAffairs.com does not evaluate or endorse the products and services advertised. See the FAQ for more information.

Company Response Welcome If complaints about your company appear on our site, we welcome your response. Please see the Response Form for more information.

For more information, see the FAQ and privacy policy. The information on this Web site is general in nature and is not intended as a substitute for competent legal advice.  ConsumerAffairs.com Inc. makes no representation as to the accuracy of the information herein provided and assumes no liability for any damages or loss arising from the use thereof. 

Copyright © 2003-2009 ConsumerAffairs.com Inc.  All Rights Reserved.    The contents of this site may not be republished, reprinted, rewritten or recirculated without written permission.