AT&T winds down wireless network

NEW YORK » AT&T Inc. said the shutdown of its second-generation, or "2G," wireless network will be complete by the end of 2016, a process that will force customers with older phones to upgrade to "3G" or "4G" handsets.

In a regulatory filing Friday, the Dallas-based company said 12 percent of its customers on contract-based plans, or 8.4 million people, have 2G phones. AT&T said it is shutting down the older network, which doesn’t support high data speeds, city by city. The process has started in New York City, and it’s trying to move the city’s 2G subscribers to new phones.

By shutting down 2G and using the same space on the airwaves for 4G, AT&T can increase data capacity by more than a hundredfold. Data use is skyrocketing as people adopt smartphones, and the company is facing a "spectrum crunch" in some areas.

Other companies are also revising 2G spectrum. Sprint Nextel is shutting down the Nextel 2G network and moving subscribers to Sprint 3G.

The second generation of wireless technology debuted in the 90s and was the first one to apply digital technology to cellphones, boosting call quality and network capacity. Third-generation networks, with higher data speeds, started becoming widespread in the U.S. about six years ago.

Zynga hit with suit on ‘The Ville’

LOS ANGELES » It can be a dog-eat-dog world in social games.

Electronic Arts Inc. has filed a copyright infringement suit against Zynga Inc., alleging that the social gaming company’s "The Ville" misappropriated EA’s game "The Sims Social."

EA’s lawsuit was just the latest in a string of bad news for Zynga. Four days before EA’s filing on Friday, the San Francisco social gaming company was hit with a shareholder lawsuit claiming that Zynga investors and executives — including its chief executive, Mark Pincus — had improperly cashed out $516 million in company stock in April, three months before Zynga posted disappointing earnings that sent its shares plummeting 37 percent in one day.

COMING UP

» Tuesday: CVS Caremark Corp., Express Scripts Holding Co., Priceline.com Inc. and Walt Disney Co. report quarterly financial results.

» Wednesday: Labor Department releases second-quarter productivity data.

» Thursday: Labor Department releases weekly jobless claims. Commerce Department releases international trade data for June. Freddie Mac, the mortgage company, releases weekly mortgage rates. Commerce Department releases wholesale trade inventories for June. Hawaiian Telcom, Nordstrom Inc. and The Wendy’s Co. report quarterly financial results.

» Friday: Treasury releases federal budget for July. J.C. Penney Co. Inc. reports quarterly financial results.

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