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AT&T Wireless gives free phones for one day

By Bloomberg News

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The one-day promotion by the No. 3 wireless company included handsets made by Nokia, Motorola and a $200 camera phone from Sony Ericsson Mobile Communications. The offer was advertised only on the Internet.

Redmond-based AT&T Wireless has been hampered by computer glitches that have kept it from complying with some customers' requests to add or drop the company's service. The trouble, which accelerated under a recent rule allowing wireless subscribers to move numbers to new carriers, came after the company added fewer-than-expected users in the third quarter.

"This was a pretty expensive promotion for just one day," said American Technology Research analyst Albert Lin, who rates AT&T Wireless stock "sell" and doesn't own the shares. Lin said he had never before seen a promotion for free high-end phones. The offer means AT&T Wireless may have fixed its problems or is "just freaking desperate" to meet a target for new customers, he said.

AT&T Wireless added 229,000 customers in the third quarter, lagging analysts' forecast of 384,000. The company had 21.9 million customers at the end of September.

To get the free phones yesterday, customers had to sign a one-year or two-year contract with an early termination penalty.

Copyright © 2003 The Seattle Times Company