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Consumer Reports' Annual Cell Phone Survey Shows Problems With AT&T/ Cingular Merger

Posted on: Monday, 5 December 2005, 18:00 CST

YONKERS, N.Y., Dec. 5 /U.S. Newswire/ -- The recent AT&T/ Cingular merger has brought a whole new cache of problems, according to Consumer Reports' annual cell phone report published in the January 2006 issue of the magazine. Consumer Reports' survey of more than 50,000 cell-phone users in 18 metropolitan areas across the country shows that overall satisfaction with cell-phone service hasn't improved in the past few years and that cell phone service remains near the bottom of the list for all services that Consumer Reports rates. Only 47 percent of respondents said that they were completely or very satisfied with their cell-phone service, one of the lowest showings for any type of service in the U.S.

Consumer Reports notes that the recent AT&T/Cingular merger did not work out well for former AT&T subscribers. More than half of the Cingular customers in Consumer Reports survey were former AT&T customers, and those who kept their old AT&T phones reported significantly more connection problems and substantially lower satisfaction rates that those who bought new Cingular phones. Consumers who wrote to HearUsNow.org, a Consumers Union website for consumers to share their experiences with cell phone service, said that switching to a phone that works on the Cingular system means buying a new phone and signing a new contract for a year or more. Consumers who opt to change to a different carrier altogether may be faced with early-termination fees of more than $100 per unit.

Consumer Reports notes that the outlook for the Nextel and Sprint merger may be even worse given the two carriers' incompatible networks. Consumer Reports' survey was conducted in September 2005, too soon after the Nextel/Sprint merger and so Sprint and Nextel are reported as two separate companies.

This year's Consumer Reports survey includes ratings on a pair of smaller carriers in two metro areas. Both the carriers, US Cellular and Alltel, did relatively well and were among the leaders in their respective areas. Verizon was among the top- rated carriers in all the metro areas and was ahead of the pack in 9 cities in a statistically meaningful way. Some other highlights from the survey include:

-- Thirty-one percent of respondents were seriously considering a switch of carrier. Those who had switched in the past three years said they were after better service and better price.

-- Eighty percent of respondents said they used their cell phones at least twice a day during the past week - up from 69 percent last year.

-- Thirty-seven percent of respondents said they were using text messaging but 21 percent of those said that text messaging cost more than they expected.

Phone Systems and 911

Consumer Reports notes that in the aftermath of the devastating hurricanes of 2005 more consumers are likely to question the dependability of the phone system in times of trouble. While a single telephone account could suffice for individual emergencies, Consumer Reports notes that no one service can currently be counted on to work in a widespread calamity. Consumer Reports suggests that consumers consider the following when planning for emergency service:

-- Landlines are vulnerable. While wired service still sets the standard for reliability in emergencies, Katrina has shown that landline service can be disrupted, too. But Consumer Reports recommends that consumers still keep a landline, wired phone around.

-- Most cell phones can't be located in an emergency. Mobility has its price, requiring advanced technology to provide a 911 caller's position to local dispatchers. But, the E911 system has not been fully deployed, so callers should be prepared to give their location. Consumers can check on local compliance at nena.ddti.net.

-- Internet 911 is improving but still spotty. For this reason, Consumer Reports recommends that consumers maintain a landline even if they use VoIP for their main telephone.

-- Satellite phones also have drawbacks. These handsets require a clear view of the sky, making indoor use iffy, and adverse weather may also pose problems.

-- 911 can call you. Consumer Reports notes that there has been great interest in emergency community notifications programs which use automated outgoing telephone calls, e-mail, and text messages to tell residents about evacuations, environmental threats, or missing persons. These services rely on landline numbers from phone directories; people with an unlisted number or wireless or VoIP service must provide their numbers to be included.

The full report which includes cell phone service Ratings in 18 cities, handset Ratings, information on Internet phoning (VoIP), and advice on the right mix of wired, wireless and Internet phoning is available in the January 2006 issue of Consumer Reports. Consumers can also visit http://www.ConsumerReports.org?source=CR49 (http:// www.ConsumerReports.org) to access an interactive Cell Phones & Service Decision Guide.

EDITOR'S NOTE: An image of this month's Consumer Reports cover is available online for free editorial use at: http:// www.usnewswire.com/attach/CR_cover.jpg

http://www.usnewswire.com

Source: U.S. Newswire

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