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AT&T Tells Customers It Is Abandoning 2G Service: Upgrade Your Phone If You Want to Still Use It

Phillip Dampier September 20, 2011 AT&T, Consumer News, Rural Broadband, Video, Wireless Broadband 2 Comments
KJCT-TV caught customers lined up literally out the door of this AT&T store in Grand Junction, Colorado.

KJCT-TV caught customers lined up literally out the door of this AT&T store in Grand Junction, Colorado.

AT&T store employees in the Grand Valley of Colorado are using the company’s upgrade of former Alltel service areas to 3G service as an excuse to tell customers they need to buy new cell phones if they continue to want to use their wireless service.

Customers lined up outside AT&T stores in communities like Grand Valley, Colorado on Monday fuming over service problems than began last weekend.

“I had about an half hour wait just to find out I had to buy a new phone and they wouldn’t credit me for it or anything,” customer Josh Simpson told KJCT-TV.

AT&T employees told the television newscast the company is “getting rid of the 2G service in Grand Junction to make room for larger networks.” Employees also said customers were sent a letter informing them about the service change, but customers might have overlooked the e-mail because it looked like spam.

Local employees shrugged their shoulders as customers repeatedly complained about having to foot the bill for brand new phones, often at full price, in order to continue using their service.

“It’s a corporate decision,” one replied.

At issue is AT&T’s adopted network, acquired originally by Verizon Wireless from Alltel but spun away to AT&T as part of an agreement with federal anti-trust officials.  Alltel’s network in the Grand Valley placed more prominence on its legacy 2G EDGE network than AT&T is willing to continue.  AT&T isn’t actually discontinuing the 2G network — it is moving 2G service to less-favorable spectrum it owns in order to make room for improved 3G coverage.  That might work fine in areas less expansive and rugged than western Colorado, but in the Grand Valley, it means many customers will find they no longer have data service at all.

The ongoing tower upgrades have also disrupted cell service generally, and when customers arrive at AT&T’s stores to complain, the employees on hand attempt to upsell them more expensive phones to “fix” the problem.

Customers calling to complain are met with busy signals or general statements from AT&T telling them the changes are for their own good.  But because so many basic cell phones don’t support 3G service, upgrades to phones that do often represent a major unexpected financial hit (and another two year contract and data plan if the phone happens to be a smartphone).

“Alltel served us just fine for many years,” writes our Glade Park reader Tim. “When AT&T eventually showed up, we got everything we never wanted, and this should be a lesson for those who think AT&T will somehow ‘improve’ service at T-Mobile if they acquire them.”

AT&T customer Joan Burns told KJCT AT&T just made up her mind for her.

“I will never again sign a contract with them,” she said. “That’s bull.”

[flv width=”360″ height=”290″]http://www.phillipdampier.com/video/KJCT Grand Junction ATT Customers Forced To Upgrade Cell Phones 9-19-11.mp4[/flv]

KJCT in Grand Junction reports AT&T customers may be noticing a disturbance in their cell phone service, as AT&T employees use it as an opportunity to get customers to upgrade to more expensive phones.  (3 minutes)

Sprint Copes With the Growing Reality of a Wireless Duopoly in the United States

Phillip Dampier July 4, 2011 AT&T, Competition, Public Policy & Gov't, Sprint, T-Mobile, Verizon, Video, Wireless Broadband Comments Off on Sprint Copes With the Growing Reality of a Wireless Duopoly in the United States

While AT&T and Verizon trade customers back and forth and enjoy fighting it out for “number one” in wireless service, smaller providers like Sprint are finding it increasingly difficult to compete with its two larger competitors, who have access to the best phones, most coverage, and don’t need to discount prices to attract new customers.

Forbes’ financial blog shares its impressions of the anticipated financial performance of the three biggest players in the U.S. market:

AT&T: Still the financial darling of Wall Street, AT&T will see some pressure on earnings from its integration of acquired assets of Alltel Verizon sold to win approval of its merger with the smaller carrier a few years ago.  Since Alltel’s network used CDMA technology, AT&T had to supply free new phones to every customer it acquired, as the GSM network it operates is not compatible.  AT&T is also still dealing with a slow bleed of iPhone customers departing for Verizon as contracts expire.  It will be interesting to see if Verizon’s imminent end of “unlimited smartphone data” will create a last minute rush from AT&T to VZW before Verizon terminates its unlimited data plan Wednesday night.

Verizon: Verizon will achieve the top spot for the number of new customers it has added during this quarter, mostly from new iPhone users.  The end of “unlimited data” could mean increased “average revenue per user” if new customers have to pay for a pricier data plan, but some analysts are keeping a “neutral” rating on Verizon’s stock, concerned about the margin squeeze created when Apple releases iPhone 5 this fall.  Customers off-contract or nearing expiration could jump for the new phone.  With the subsidy Verizon provides to new iPhone owners, it could bring down margins.

Sprint: The biggest challenge remains with the number three carrier Sprint, which had been picking up disaffected customers from AT&T, Verizon, and even T-Mobile.  That growth has since slowed, and now the company is depending on increased revenue from price hikes, especially on smartphones which now carrier a $10-higher price tag.  But Sprint is aggressively trying to hold the line on customer defections, sometimes approaching “giving away the store” in order to keep customers from leaving for AT&T or Verizon.  In addition to accelerating free/discounted upgrades to new smartphones, the company has also increased the number of calling minutes for its Everything Data plan from 400 to 750.

Sprint’s distant-third position requires the company to price its service plans more aggressively than its larger competitors, especially to counter the image it runs a smaller network with less-reliable coverage.  If AT&T succeeds in acquiring T-Mobile, the dominance of AT&T and Verizon will become even more solidified, threatening Sprint’s position as a viable alternative to the larger two.  That could leave Sprint in the difficult position of trying to finance upgrades even as it has to heavily discount service to keep its current customers loyal.

[flv]http://www.phillipdampier.com/video/CNBC Sprint Going the Distance 4-28-11.flv[/flv]

On April 28, Sprint Nextel CEO Dan Hesse talked with Jim Cramer about his initial impressions of the announced AT&T/T-Mobile merger and how Sprint would cope with it.  (9 minutes)

[flv]http://www.phillipdampier.com/video/CNBC Sprint Nextel CEO Speaks Out 6-9-11.flv[/flv]

Back in June, Dan Hesse was back with CNBC’s Jim Cramer to expand on Sprint’s strategy to deal with a wireless duopoly and how it hopes to compete in a market where two companies would control nearly 80 percent of all American wireless revenue.  (11 minutes)

AT&T Takes Over Remaining Alltel Territories: Customers Share Their Phone Swapping Experience

Verizon Communications formally closed its acquisition of Alltel in January 2009, but some former customers are only now feeling the impact as they transition to… AT&T.

That’s right, AT&T.

Although Verizon acquired the bulk of Alltel’s national customer base, the federal government ordered Verizon to sell off its future Alltel customers in communities where the company would likely be the overwhelmingly dominant player.  Verizon sold off most of these orphaned customers, numbering over a million, especially in the Mountain Time Zone, to AT&T.

The transition from Alltel to AT&T would be a bumpy one because the two companies use different wireless technologies, meaning every customer would have to be provided with a new phone.  Alltel’s customers remaining with Verizon didn’t experience this, because both companies use CDMA technology.

AT&T agreed, as part of the deal, to supply every one of its new postpaid/contract Alltel customers with brand new GSM phones (although AT&T was unwilling to provide free advanced smartphones like Apple’s iPhone).  Prepaid customers were less lucky — they only received discounts off new phones.

Stop the Cap! has talked with more than a dozen affected customers in Arizona, New Mexico, Michigan, Utah, Wyoming, Iowa and Colorado about their experiences as they transition to AT&T service.  With AT&T now proposing to merge with T-Mobile, which could also mean some new phones for T-Mobile customers, we wanted to learn what customers thought about being moved from one carrier to another, what their experience was before the transition and after, and whether they intend to stay with AT&T.

Our panel included a young man from Utah who used his phone at home and outside of the state as he performed mission work for the Mormon Church in rural Florida.  We also spoke with a retired couple living in Arizona who chose Alltel because of their unlimited calling circle option to stay in touch with friends and family in Minnesota.  Also participating: a travel agent in Michigan, a realtor in New Mexico, a self-employed contractor in Colorado, a farmer in Iowa, and several others who shared their stories with us in e-mail.  By mutual agreement, we’re keeping their last names private because some have pending disputes with AT&T.

Breaking the News: Alltel Sells Out Their Customers to Verizon

When Karen, a realtor from New Mexico first heard word that Alltel was selling out to Verizon, she wasn’t sure exactly what that meant.  There was considerable confusion in her part of southern New Mexico mostly because the local media does a poor job of covering telecommunications stories.

“In New Mexico, everything in the media is centered around what is going on in Albuquerque and everything else is given little attention, except in the local newspaper,” Karen says.  “But whether you are in Las Cruces or Roswell, the quality of the story depends on the quality of the poorly paid reporter.”

Karen was not worried about the sale at first, because she was aware Verizon had a good reputation for cell phone service.  She had originally selected Alltel because they had good rates and friendly customer service.

“If I ever had a problem with my phone, Alltel would always fix it, even if it was out of warranty,” Karen explains.  “That meant a lot to me because they didn’t have to do that, but it was why I always renewed my contract.”

Heath, who runs a home-based contracting business in southern Colorado, didn’t like what he was hearing from the start.  Neither did Marion and Will, a retired couple living outside of Phoenix.

“We had our dealings with Verizon back in Minnesota when we lived there and we never liked them because they cost too much,” Will says.  “Alltel was a great choice for us because they had a calling circle plan that let you make unlimited calls to certain numbers, and we talked with our daughter back in Minnesota daily using our cell phone.”

Confusion about the deal only got worse when Alltel (and in some cases Verizon) notified our panel members they would not be Verizon customers after all — they were being sold off to another cell phone company.

Alltel -> Verizon -> AT&T -> Frustration

Micah, our reader in Utah first contacted us more than a year ago to express his confusion about why he was not only losing his Alltel account, but now he was somehow ending up as a customer of AT&T, a carrier he definitely wants nothing to do with.

“I figured I could at least live with Verizon because they are everywhere, but as I started performing my mission work for the church in rural central Florida, I learned from my parents I was actually going to end up a customer of AT&T, something I definitely never wanted,” Micah says.  “AT&T is terrible in Utah and worse here — nobody wants AT&T unless you are in Orlando or Daytona Beach.”

Alltel Markets Sold to AT&T (click to enlarge)

“At first we thought, cool, new phones for everyone,” Shanie told Stop the Cap! from her home in Muskegon, Mich. “AT&T has been promising major expansion of service here in western Michigan since they notified us they were taking over for Alltel, but then we started learning the details.”

While Shanie’s family of four would be given four new phones, their choices of new phones were limited, although AT&T called them “comparable.”  Many of AT&T’s smartphones were not covered, even if families already owned smartphones purchased from Alltel.

“We also discovered if you wanted one of these advanced phones, it meant a new two-year contract with AT&T, effectively forcing us to stay with them longer,” Shanie says.

Jed, a farmer outside of Sioux City, Iowa says AT&T did a poor job keeping him informed.  Jed stopped receiving all communication from Alltel (other than a bill) and never heard a word from AT&T.  Instead, one of his neighbors warned him that his Alltel phone was going to quit working by the middle of May.  Jed was upset because the deadline for him to choose a new free phone had passed and he never had the opportunity to make a choice, never having been notified about any of the changes.

“The newspaper might have said something about it, but we don’t get the paper here and nobody has much time to spend watching television,” Jed shared.  “We would have thought AT&T would have notified us, but they apparently forgot we were here.”

Last week, a new phone arrived from AT&T in the mail, unsolicited.

“What a way of doing business — we thought at first it was some sort of fraudulent purchase and we almost didn’t accept it from the driver,” Jed said.

AT&T has been sending out new phones all month to customers across several states, encouraging them to call and activate them on AT&T’s network.  Once customers do that, their old Alltel phones will quit working.  That was a problem for Shanie’s daughter at college in Grand Rapids.  When mom activated her phone, the primary one on the account, her daughter’s Alltel phone stopped working.

“AT&T has you call a toll-free number to activate the phone, but first they require y0u to accept the terms and conditions for doing business with AT&T, which can include contract extensions for some people,” Shanie said.  “I had no idea activating my phone would end service on all of the other Alltel phones on the account.”

Alltel customers in these states had new AT&T phones shipped to them on this schedule.  The second date refers to the service transition cutoff date:

Arizona January 27, 2011
February 10, 2011
Southern New Mexico February 7-8, 2011
March 2-3, 2011
Michigan and Montana February 16-21, 2011
April 6-12, 2011
Colorado, Northern New Mexico February 23-28, 2011
April 13-18, 2011
Iowa and South Dakota March 4-14, 2011
April 19-28, 2011
North Dakota March 15-21, 2011
April 29-May 5, 2011
Utah and Wyoming April 1-6, 2011
May 9-12, 2011

Bailing Out for Alternatives

Jody, a soon-to-be-ex AT&T customer in New Mexico, says there was plenty of fine print to wade through when he prepared for the switch from Alltel, and he didn’t like what he saw.

“AT&T is very tricky about how they handle customers who want to depart Alltel and avoid becoming an AT&T customer,” Jody says.  “You cannot cancel your Alltel contract and avoid an early termination fee, but you can cancel AT&T within 30 days of switching and escape a hefty exit fee.”

Indeed, AT&T’s transition website says Alltel customers who want to switch providers will face an early exit penalty as long as their Alltel phones remain active.  Those who switch and activate their new AT&T phones get a 30 day window to drop AT&T and avoid an ETF:

If, after moving to AT&T service, you choose to discontinue your AT&T service, you will have a 30-day period to opt out of your AT&T contract without an ETF. After that 30-day period, standard AT&T terms apply including any applicable ETF.

Old name, New Company

Jody got his new phone and promptly canceled his AT&T service.  He switched to CellularOne, a company with a legacy name but a very local network.  It has its own cell towers only in northern Arizona and parts of New Mexico.  For everywhere else, it depends on a roaming agreement with… AT&T.

Jody’s CellularOne plan still offers completely unlimited calling, texting, and data for around $80 a month, and that includes AT&T’s nationwide network.

“CellularOne offers a much better deal than AT&T, but you can only choose from three lower end smartphones — no iPhone to be had here,” Jody says.

Heath in Colorado wants out of AT&T as well.

“They drop calls all the time and their network strength is awful in my neighborhood, and I depend on my cell phone and don’t have a landline,” Heath says.  “I don’t know why we had to be stuck with AT&T who apparently de-commissioned Alltel’s towers, which used to deliver a rock solid signal here.”

But not everyone is heading for other carriers.  Sam in Farmington, New Mexico says AT&T is bringing 3G to his community and mobile broadband speeds have been much faster than what Alltel used to deliver.

“AT&T’s data plans are overpriced, but if you can hang onto your existing Alltel plan but use it on AT&T’s network, it’s not so bad,” Sam says.  “Unfortunately, you cannot upgrade to an iPhone and keep Alltel’s plans — you have to pick one of AT&T’s.”

The Future for T-Mobile Customers

Although T-Mobile shares the same GSM network technology AT&T uses, the two companies have different frequency allocations for their respective networks.  T-Mobile customers seeking access to AT&T’s network will probably need new phones to access it. While AT&T claims T-Mobile’s own largely urban network will supplement AT&T’s own coverage, customers may need new equipment for that to be true as well, unless AT&T co-locates their own cell antennas on T-Mobile towers.

Former Alltel customers tell Stop the Cap! AT&T didn’t offer the latest and most popular phones for their swap, and some customers too far away from an AT&T store had to get a new phone without being able to try it.  AT&T allowed customers to exchange phones within 30 days, which helped some of our readers, but most felt the entire idea of being forced to switch to AT&T an inconvenience.  Most were also disturbed that one of the competitors in their area was disappearing, and considering Alltel served largely small cities and rural areas, there was already a lack of choice for most.  In total, three of our readers are staying with AT&T, two left for CellularOne, one chose to switch to a prepaid plan, and the rest went with Verizon after all.  If Alltel were still around, every customer we talked with for this piece would have stayed with them.

Former Alltel-Verizon Wireless Customers: AT&T Is Coming By Year’s End – Free Phones, Wireless Modems

Phillip Dampier September 5, 2010 AT&T, Competition, Consumer News, Video, Wireless Broadband Comments Off on Former Alltel-Verizon Wireless Customers: AT&T Is Coming By Year’s End – Free Phones, Wireless Modems

When Alltel announced the sale of its wireless business to Verizon in 2008, few Alltel customers could have foreseen they’d technically end up changing cell phone providers not once, but twice.  That’s because the federal government ordered Verizon to sell off Alltel’s assets in communities where Verizon already had a substantial market share.  For the sake of competition, the majority of Alltel customers in 18 states affected by the federal government divestiture order will become AT&T customers shortly.

That poses a problem because Alltel’s network and phones use CDMA network technology.  AT&T uses a different standard called GSM.  The two standards are not compatible.  Since AT&T has no intention of operating a CDMA network for Alltel customers, once AT&T converts Alltel’s cell sites to operate on its own network, every Alltel customer will be left with phones and equipment that will no longer work.

To make the deal work, AT&T has agreed to provide, at no charge, comparable brand new phones and other equipment to Alltel customers being moved to AT&T’s network.  No new contract is required, and customers will not be forced to extend one to receive the new AT&T equipment.

But that deal doesn’t extend to handing out free iPhones to Alltel customers.  If you want one of those, you will have to pony up the same money every other AT&T customer pays, and sign a new two-year contract.

This week, AT&T announced it was speeding up the transition, and many customers will be choosing new free phones around the end of this year or in early 2011.  Originally, AT&T expected it would take until mid-2011 to complete network conversions.  Complete details can be found on the AT&T-Alltel Transition Website.

For residents in the north-central United States, the iPhone craze has been something other Americans have experienced.  For much of the Dakotas and Montana, the transition will bring the first opportunity to get the popular smartphone at the subsidized price AT&T offers all of its customers on contract.

The implications of AT&T’s imminent arrival in the area doesn’t seem to bother the other dominant provider – Verizon Wireless.  In South Dakota, AT&T’s entry into the market may cause some to switch to AT&T, if only for the iPhone.  But Karen Smith, spokeswoman for Verizon Wireless in the Great Plains region, says Verizon is confident with the lineup of phones it already offers and remains the nation’s largest wireless carrier even without the iPhone.

Current Verizon customers like Jill Garrigan of Rapid City told the Rapid City Journal she’d consider switching to AT&T to grab the iPhone, but she’d much prefer buying one from Verizon Wireless.

“If Verizon carried the iPhone, I’d probably consider getting it from Verizon,” Garrigan said.

Many other South Dakotans share concerns about the higher monthly wireless bills the iPhone brings, and they’re not interested in paying a lot more just to own one.

Garrigan’s friend, Jessica Simon, said she’ll keep her current Samsung phone, thank you very much.  The reason?  “It’s all the additional money and all the surcharges,” she told the newspaper.

But local cell phone dealers believe the arrival of Apple’s iPhone will cause a sensation across the region, and they’ve already fielded calls from customers anxious to acquire one.

Stop the Cap! has created a map showing the areas due for early conversion for your convenience.

Areas shaded in red are scheduled for early conversion to AT&T's GSM Network (click to enlarge)

[flv width=”640″ height=”500″]http://www.phillipdampier.com/video/Alltel ATT Transition Ahead of Schedule 9-4-10.flv[/flv]

Stop the Cap! has compiled news reports from across the region regarding the AT&T-Alltel transition and its impact on states including the Dakotas, Montana and Wyoming.  Clips courtesy of WDAY-TV Fargo, N.D., KGWN-TV Cheyenne, Wyo., KECI-TV Missoula, Mont., and KFYR-TV Bismarck, N.D. (4 minutes)

Upgrade Specifics

The following counties are on AT&T’s early upgrade list (RSA=Rural Service Area):

Alabama: Greater Dothan area and RSA 7 including Butler, Coffee, Covington, Crenshaw, Geneva and Pike Counties.

Arizona: RSA 5 including Gila and Pinal Counties.

Colorado:  RSA 4 includes Chaffee, Custer, Fremont, Lake and Park Counties. RSA 5 includes Cheyenne, Elbert, Kit Carson and Lincoln Counties. RSA 6 includes Dolores, Hinsdale, La Plata, Montezuma, Ouray, San Juan and San Miguel Counties. RSA 7 includes Alamosa, Archuleta, Conejos, Mineral, Rio Grande and Saguache Counties. RSA 8 includes Bent, Crowley, Kiowa, Otero and Prowers Counties. RSA 9 includes Baca, Costilla, Huerfano and Las Animas Counties.

Michigan: Greater Muskegon area and RSA 5 includes Benzie, Lake, Leelanau, Manistee, Mason, Missaukee, Osceola and Wexford Counties. RSA 7 includes Gratiot, Isabella, Mecosta, Montcalm and Newaygo Counties.

Montana: Greater Billings and Great Falls areas and RSA 1 includes Flathead, Glacier, Lake, Lincoln, Pondera, Sanders and Teton Counties. RSA 2 includes Blaine, Chouteau, Hill, Liberty and Toole Counties. RSA 4 includes Daniels, Dawson, McCone, Richland, Roosevelt, Sheridan and Wibaux Counties. RSA 5 includes Granite, Lewis and Clark, Mineral, Missoula, Powell and Ravalli Counties. RSA 6 includes Broadwater, Deer Lodge, Jefferson, Judith Basin, Meagher, Silver Bow and Wheatland Counties. RSA 7 includes Fergus, Golden Valley, Musselshell, Petroleum, Stillwater and Sweet Grass Counties. RSA 8 includes Beaverhead, Gallatin, Madison and Park Counties. RSA 9 includes Big Horn, Carbon, Rosebud and Treasure Counties. RSA 10 includes Carter, Custer, Fallon, Powder River and Prairie Counties.

New Mexico: Greater Las Cruces area and RSA 1 includes Cibola, McKinley, Rio Arriba, San Juan and Taos Counties. RSA 5 includes Grant, Hidalgo and Luna Counties. RSA 6 includes Chaves, Eddy, Lee, Lincoln and Otero Counties.

North Dakota: Greater Fargo, Grand Forks, and Bismarck areas and RSA 1 includes Burke, Divide, McLean, Mountrail, Renville, Ward and Williams Counties. RSA 2 includes Benson, Bottineau, Cavalier, McHenry, Pierce, Ramsey, Rolette and Towner Counties. RSA 3 includes Barnes, Dickey, Griggs, LaMoure, Nelson, Pembina, Ransom, Richland, Sargent, Steele, Traill and Walsh Counties. RSA 4 includes Adams, Billings, Bowman, Dunn, Golden Valley, Grant, Hettinger, McKenzie, Mercer, Oliver, Sioux, Slope and Stark Counties. RSA 5 includes Eddy, Emmons, Foster, Kidder, Logan, McIntosh, Sheridan, Stutsman and Wells Counties.

South Dakota: Greater Sioux Falls and Rapid City areas and RSA 1 includes Butte, Harding, Lawrence and Perkins Counties. RSA 2 includes Campbell, Corson, Dewey, Potter, Walworth and Ziebach Counties. RSA 3 includes Brown, Edmunds, Faulk, McPherson and Spink Counties. RSA 4 includes Clark, Codington, Day, Deuel, Grant, Hamlin, Marshall and Roberts Counties. RSA 5 includes Custer, Fall River and Shannon Counties. RSA 6 includes Bennett, Gregory, Haakon, Jackson, Jones, Lyman, Mellette, Stanley, Todd and Tripp Counties. RSA 7 includes Aurora, Brule, Buffalo, Charles Mix, Davison, Douglas, Hand, Hughes, Hyde, Jerauld and Sully Counties. RSA 8 includes Beadle, Brookings, Kingsbury, Lake, Miner, Moody and Sanborn Counties.RSA 9 includes Bon Homme, Clay, Hanson, Hutchinson, Lincoln, McCook, Turner, Union and Yankton Counties.

Virginia: Greater Danville, Norton and South Hill areas and RSA 1 includes Buchanan, Dickenson, Lee, Russell, and Wise Counties and Norton City. RSA 8 includes Amelia, Brunswick, Lunenburg, Mecklenburg and Nottoway Counties.

Wyoming: Greater Casper area and RSA 1 includes Big Horn, Hot Springs, Park and Washakie Counties. RSA 2 includes Campbell, Crook, Johnson, Sheridan and Weston Counties. RSA 4 includes Albany, Goshen, Laramie, Niobrara and Platte Counties. RSA 5 includes Converse County.

Rural Alltel Wireless Broadband Customers Told to Log Off Forever

Rural Alltel wireless broadband customers are getting the axe as the company’s new owners have started pulling the plug on customers caught roaming too much with their service.

Not all of Alltel customers have become Verizon Wireless customers after Verizon bought Alltel in 2008.  In areas where Verizon Wireless already provided service, FCC rules required Alltel to sell its assets to other cell phone companies like AT&T or several regional providers.  One such company, Allied Wireless, bought the rights to use the Alltel name for its service.  But it’s not the same Alltel customers in southern Illinois remember.

Scott Sneddon, who lives near Benton, discovered that for himself when trying to log in using his Alltel Aircard.  When the service wouldn’t work, he called Alltel to learn they had unilaterally canceled his wireless broadband service because he was roaming off Alltel’s original network too often.  For the Sneddon family, that meant the Internet itself would no longer be available to them as they have no access to DSL or cable broadband service.  Sneddon received no warning and no second chance.

Sneddon is concerned because Alltel’s unlimited service plan did not carry the typical 5GB monthly usage allowance other providers enforce.  Despite having a two year contract, Alltel was able to pull the rug out from under his service because the company wanted to cut its roaming costs.  Although the Sneddon initially faced a $400 early cancellation penalty to switch providers, the media attention Alltel received made them relent — Alltel customers in similar positions who find themselves out in the wireless broadband cold will not have to pay a penalty to cancel all of their Alltel services.  Additionally, the company has promised to refund one month of service and refund all wireless broadband equipment charges incurred by dropped customers.

For rural America, incumbent wireless providers disconnecting service for customers they don’t want to serve is just another broken broadband promise.

[flv width=”640″ height=”500″]http://www.phillipdampier.com/video/WSIL Harrisburg Alltel Drops Illinois Customers 6-27-10.flv[/flv]

WSIL-TV in Harrisburg, Ill., shares the stories of two Illinois families left without Internet service when Alltel suddenly canceled their service “for roaming too much.”  (4 minutes)

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