Cell Phone Termination Fees

A California Superior Court judge ruled that early termination fees for cell phone users is an illegal practice under state law. The preliminary judgement orders Nextel to pay customers some $18.2 million in reimbursement, and enjoins the collection efforts of $54.7 million. This ruling is going to affect everything from the current rates to hardware costs. Many companies use hardware discounts as an incentive to lock in long term contracts.