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Well, this is certainly good news even if the decision will be appealed and hung up for who knows how long! But a California Judge has ruled that Sprint Nextel Corp has to pay back and credit customers who were charged early termination fees. While this is great news, I wonder what it will do to device costs in the future. I can tell you that the Wireless Carriers ARE NOT going to lose money. Does this means the end of low device costs with contracts? I am not trying to be pessimistic, but I know there is a downside somehow for us! Here is the story:

SAN FRANCISCO (AP) — The fees that cell phone carriers charge customers who break service contracts took a big hit in a California courtroom when a judge said such charges by Sprint Nextel Corp. likely violate state law.

The judge, in a tentative ruling issued late Monday, said Sprint will have to pay $18.3 million to customers who sued over the fees and credit $54.8 million to those who were charged but did not pay the fees.

The same judge is considering other lawsuits against telecommunications companies over their so-called early termination fees, which can range from $150 to $225. This month Verizon Wireless agreed to pay $21 million to settle an identical lawsuit just as trial was starting.

Alameda County Superior Court Judge Bonnie Sabraw rejected Sprint’s argument that a state court had no business deciding an issue the company said should be left for federal authorities. And while her ruling isn’t legally binding outside the state, it cut to the heart of an ongoing debate in other state courthouses and in Washington, D.C., over the fairness of the fees.

Source: Radimus over at MobilitySite.com

Doug Smith (301 Posts) - Website | Twitter | Facebook