WASHINGTON-Cingular Wireless L.L.C. is negotiating with the California Public Utilities Commission to settle a proposed $12 million fine against the No. 2 mobile-phone carrier for business practices that the agency said broke state laws.
The settlement talks came to light during a CPUC public meeting today in San Francisco. The CPUC was set to vote on a proposal by Commissioner Susan Kennedy to lower the penalty substantially to around $900,000 plus refunds of early termination fees to customers.
Instead, the CPUC agreed to postpone a vote on the Cingular matter until Sept. 23 to give the parties additional time to work out an accord. Any settlement would be subject to public comment.
There are indications Cingular, which is seeking government approval to acquire No. 3 wireless carrier AT&T Wireless Services Inc. for $41 billion, only recently began pursuing serious settlement talks with CPUC lawyers when it suspected Kennedy’s alternate decision did not have the votes to pass. Had Kennedy’s proposal been rejected, Cingular would have faced the likely prospect of seeing the initially assessed $12 million fine affirmed by the five-member state agency.
Cingular declined to comment whether it was trying to strike a deal with the CPUC.
Commissioner Carl Wood, a consumer advocate and author of the original bill of rights for telecom consumers, said settling with Cingular would not be appropriate and would send the wrong message. Wood suggested the original $12 million fine levied against Cingular was lenient.
