AT&T Wireless kills roaming fees

AT&T Wireless has announced that it is eliminating roaming fees that it previously charged customers for using the service in its GSM network coverage gaps, a new policy that mimics the “nationwide no roaming charges” promotion of Cingular Wireless, the carrier that has agreed to acquire AT&T Wireless.

The roaming charges will be eliminated for customers who enroll in AT&T Wireless’ new GSM America nationwide calling plan that launches April 18, as well as for customers participating in several existing GSM plans, the carrier said.

Analysts made a direct connection between the two programs, and also suggested that AT&T Wireless is eliminating roaming charges to keep its service attractive in the face of ongoing customer losses since number portability began late last year.

“They might have lost more than 150,000 users in [the first quarter, which ended March 31], so you have to do things like this,” one analyst said. “They’re doing something Cingular has been promoting, too.”

AT&T Wireless has not responded to speculation about subscriber losses, but it is expected to be a hot topic of discussion when the company reports its first quarter earnings on April 28.

An AT&T Wireless spokesman admitted that the plan to eliminate roaming charges has been in the works for a few months, around the time of the fourth quarter 2003 IT system problems that contributed to poor subscriber numbers for the quarter.

The spokesman also said that the new program was only recently made possible by AT&T Wireless doubling its national GSM coverage in the last year by adding new cell sites and improving existing ones, as well as by establishing GSM roaming agreements with other carriers, including Cingular.