A California judge declared that Sprints termination fee policy violates California state law for business practices, and ordered Sprint to pay 18.3 Million to their former customers, as well as credit another $54.8 Million to customers that would not pay their fees. This is going to cause a major stir in the industry as there are many other courts reviewing very similar cases. I personally do not understand how the judge could have come to such a bogus desicion. The customers knew that they were signing an agreement. When another business breaks a contract the other business in awarded damages based on loss to the company as a result of breaking the contract, or are made to pay the remainder of the agreed upon service. Customers are not going to like buying their phones starting at $300. There are a good number of customers that do not buy a phone unless they get it FREE! Cellular companies as of now loose money on the equipment to make it on the service. The subsidise the phones so customers are assured that they get phones that are network compatible, and can get them for a reasonable price. You can bet that the outlaw of early termination fees will result in customers buying their phones ABOVE retail value. Customers are going to cry foul when they are greeted with the new phone prices. After all they are used to buying a phone for between $0.99 to $350. The sale of smart devices will plummet, and its very possible unless someone comes up with another way to subsidise these phones cellular technology is going to stand still until the cost of technology falls again. Congratulations judge you may have single-handedly ruined the cellular industry for everyone!
More Via Yahoo! News
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