Feeds

Judge OKs Sprint's $30m overcharging settlement

Pre-paid

Remote control for virtualized desktops

A federal judge has given Sprint Nextel initial approval to pay $30m to settle a class-action lawsuit accusing it of colluding with other phone companies to overcharge customers. Qualified customers will receive prepaid calling cards from a cache worth $25m. Attorneys get the remaining $5m for fees and costs.

The case, struck in 2003, accuses Sprint of scheming with AT&T and MCI to charge business and residential customers more than the regulated fee for the Universal Services Fund. Major US telecom providers are required to contribute to the USF, which subsidizes services available to low income, rural and high cost areas. The Federal Communications Commission sets the contribution rate.

The settlement covers long-distance customers who paid the fees between August 1, 2001 and March 31, 2003. This includes Sprint long-distance residential and business customers, MCI long-distance business customers, AT&T long-distance business customers and AT&T long-distance residential customers in California.

Sprint's bills identified the charge as "Federal Universal Services Fee" or "Carrier Universal Service Charge," while AT&T called it a "Universal Connectivity Charge".

The antitrust case had consolidated several smaller class-actions to a federal court in Kansas City. Sprint's co-defendant, AT&T, was not included in the settlement, and still faces litigation.

US District Judge John Lungstrum has scheduled a final hearing for the Sprint settlement on March 3, 2008. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
YOU are the threat: True confessions of real-life sysadmins
Who will save the systems from the men and women who save the systems from you?
Download alert: Nearly ALL top 100 Android, iOS paid apps hacked
Attack of the Clones? Yeah, but much, much scarier – report
Broadband sellers in the UK are UP TO no good, says Which?
Speedy network claims only apply to 10% of customers
Virgin Media struck dumb by NATIONWIDE packet loss balls-up
Turning it off and on again fixes glitch 12 HOURS LATER
Ofcom snatches 700MHz off digital telly, hands it to mobile data providers
Hungry mobe'n'slab-waving Blighty swallows spectrum
Fujitsu CTO: We'll be 3D-printing tech execs in 15 years
Fleshy techie disses network neutrality, helmet-less motorcyclists
Facebook, working on Facebook at Work, works on Facebook. At Work
You don't want your cat or drunk pics at the office
prev story

Whitepapers

Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Managing SSL certificates with ease
The lack of operational efficiencies and compliance pitfalls associated with poor SSL certificate management, and how the right SSL certificate management tool can help.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.