Rumor Mill: AT&T Wireless subscribers defect en masse
According to a report from Bloomberg, AT&T Wireless may post its first net
quarterly subscriber loss as the carrier's customers flock to rivals like
Verizon Wireless and T-Mobile. AT&T Wireless may lose as many as 201,000
subscribers in the first quarter. The carrier is struggling to attract new
users as it faces acquisition by Cingular Wireless sometime later this year.
Analysts claim that the combination of the uncertainty of the Cingular
merger, the carrier's poor customer support, and the wide availability of
number portability could work to substantially shrink AT&T Wireless'
subscriber base before the end of this year.

Meanwhile, Cingular is powerless to do anything to stop the subscriber
defections until it completes its merger with AT&T Wireless. Some insiders
speculate that AT&T Wireless could have substantially fewer subscribers by
the time its merger with Cingular is complete, adding fuel to criticisms
that Cingular overpaid for its U.S. rival. At the same time, Verizon
Wireless claims that AT&T Wireless is "melting down" under the combined
pressure from the Cingular merger and the carrier's poor level of service.

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