BEFORE THE PUBLIC UTILITIES COMMISSION OF STATE OF CALIFORNIA

Investigation on the Commission's own motion into the operations, practices, and conduct of Pacific Bell Wireless LLC dba Cingular Wireless, U-3060, U-4135 and

U-4314, and related entities (collectively "Cingular") to determine whether Cingular

has violated the laws, rules and regulations

of this State in its sale of cellular telephone equipment and service and its collection of an Early Termination Fee and other penalties from consumers.

FILED

PUBLIC UTILITIES COMMISSION

JUNE 6, 2002

SAN FRANCISCO OFFICE

I.02-06-003

ORDER INSTITUTING INVESTIGATION INTO THE OPERATIONS OF

PACIFIC BELL WIRELESS AND RELATED ENTITIES, DBA CINGULAR

I. SUMMARY

By this Order, the Commission institutes an Investigation into the practices of Pacific Bell Wireless, LLC, at times doing business as Cingular Wireless ("Cingular"). We take this action based in part on customer complaints that Cingular's system has inadequate coverage in customers' area of use, and insufficient system capacity to carry their calls as needed, contrary to the customers' reasonable expectations.

Cingular sells mobile telephones bundled with wireless and long-distance telephone services. In so doing, Cingular makes the implied promise that adequate system coverage and capacity will exist in the subscriber's area of use. This promise is then taken back -- in some of Cingular's marketing materials -- by a fine-print disclaimer of warranty. The limitations of Cingular's system often defeat the customer's reasonable expectations of coverage and capacity. The customer, however, may be prevented from canceling Cingular's service and returning the phones by virtue of a $150 (or higher) early termination fee (ETF) and other fees which make cancellation more costly than continuing to use the inadequate service. The Commission will investigate whether Cingular's sale of cellular telephone service and equipment, and its collection of the ETF and other penalties from consumers, violate the laws of this State or the orders and regulations of this Commission.