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 by 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 by their so-called early termination fees, which can range from $150 to $225. that 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., by the fairness of the fees.

The Federal Communications Commission is enduring intense lobbying by how best to handle the fees. Telecommunications companies have asked the FCC to regulate the fees and shield wireless companies from class action lawsuits in state courts, such as the one Sprint is poised to lose.

At a public hearing last month, FCC Chairman Kevin Martin sketched out a plan in which the cancellation fees would be reduced by the life of the contract. Three companies — T-Mobile, AT&T and Verizon Wireless — already do that and Sprint said it would start prorating its fees next year.

Martin said he hoped the commission would invent a decision in August.

FCC spokesman Robert Kenny declined to comment on the court decision specifically, but did say it wouldn’t affect the agency’s plans to…

Orginal post by Mike

News Mechanical Computers Gadgets Electronic Reviews Games Gismos Gadget