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July 20, 2006 at 11:37 AM

Cingular’s Q2 Earnings highest ever

Cingular Wireless, owned by AT&T and BellSouth, reported that in the second quarter it had its highest-ever net income, $540 million, a year-over-year increase of 267 percent.

By adding 1.5 million subscribers during the three months ended June 30, it remained the largest carrier in the U.S. with 57.3 million subscribers.

In order to book those kind of subscriber gains, it kept its customer departures low. It reported overall monthly subscriber churn of 1.7 percent, its lowest ever.

That’s despite a class action lawsuit filed during the quarter on the behalf of AT&T Wireless customers, who were acquired when Cingular bought the Redmond-based company in 2004.

The lawsuit claims AT&T Wireless customers faced excessive fees, poor service, dropped calls and a network that has not been maintained, as part of a campaign to push former AT&T Wireless customers to switch to Cingular.

The suit, which seeks class-action status, was filed earlier this month in U.S. District Court in Seattle.

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