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Thread: California judge rules early cell phone termination fees illegal

  1. #1
    ...... California judge rules early cell phone termination fees illegal Fabulous's Avatar
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    Default California judge rules early cell phone termination fees illegal

    The preliminary, tentative judgment orders Sprint Nextel to pay customers $18.2 million in reimbursements and, more importantly, orders Sprint to stop trying to collect another $54.7 million from California customers (some 2 million customers total) who have canceled their contracts but refused or failed to pay the termination fee.

    While an appeal is inevitable, the ruling could have massive fallout throughout the industry. Without the threat of levying early termination fees, the cellular carriers lose the power thatís enabled them to lock customers into contracts for multiple years at a time. And while those contracts can be heinously long, they also let the carriers offer cell phone hardware at reduced (subsidized) prices. AT&Tís two-year contract is the only reason the iPhone 3G costs $199. If subsidies vanish, what happens to hardware lock-in? Could an era of expensive, but unlocked, hardware be just around the corner? Itís highly probable.

    Of course, the carriers arenít going to take this lying down. Early termination fees are seen as critical to business, so carriers are expected to look for ways to reclassify the fees (such as by calling them ďrates,Ē part of the arcane set of laws that covers the telecommunications industry). The industry is also pushing for the federal government to step in and claim oversight over the early termination fee issue, which would invalidate any state ruling. The FCC is generally more tolerant of such fees, though Chairman Kevin Martin has proposed a plan whereby the fees are decreased the closer you are to the end of your contract.

    The FCC may also buy the argument that, since carriers are nationally based (and consumers can use their phones anywhere in the country), that a single policy should apply across the nation, rather than creating a patchwork of legislation that could lead to confusion and chaos caused by having 50 different policies.

    Is the early termination fee dead? Not yet, but itís looking a little haggard.


    via: YAHOO:happy002:
    "One hand full of ****... does not equal a fist full of dollars!" -50 Cent


  2. #2
    Eat Lead!!! California judge rules early cell phone termination fees illegal Ironstreets's Avatar
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    Default Re: California judge rules early cell phone termination fees illegal

    Sprint should go somewhere and die anyways i hate then...they raped the **** outta me when i had them a few years back


    D-Town hip hop at its finest



  3. #3
    ...... California judge rules early cell phone termination fees illegal Fabulous's Avatar
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    Default Re: California judge rules early cell phone termination fees illegal

    Quote Originally Posted by Ironstreets View Post
    Sprint should go somewhere and die anyways i hate then...they raped the **** outta me when i had them a few years back
    I have them the plan is good and cheap as hell...I know how to get my way:happy002:
    "One hand full of ****... does not equal a fist full of dollars!" -50 Cent


  4. #4
    OhEmGee California judge rules early cell phone termination fees illegal Fresh2defsheis's Avatar
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    Default Re: California judge rules early cell phone termination fees illegal

    Thats great they should have that in every state...

    These companies be tryin to make big bucks off of stupid ****

    Ponder The Question NOT The Answer!

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