Feeds

Judge OKs Sprint's $30m overcharging settlement

Pre-paid

Boost IT visibility and business value

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. ®

Seven Steps to Software Security

More from The Register

next story
Yorkshire cops fail to grasp principle behind BT Fon Wi-Fi network
'Prevent people that are passing by to hook up to your network', pleads plod
Major problems beset UK ISP filth filters: But it's OK, nobody uses them
It's almost as though pr0n was actually rather popular
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
Google Nest, ARM, Samsung pull out Thread to strangle ZigBee
But there's a flaw in Google's IP-based IoT system
US freemium mobile network eyes up Europe
FreedomPop touts 'free' calls, texts and data
'Two-speed internet' storm turns FCC.gov into zero-speed website
Deadline for comments on net neutrality shake-up extended to Friday
Oh girl, you jus' didn't: Level 3 slaps Verizon in Netflix throttle blowup
Just hook us up to more 10Gbps ports, backbone biz yells in tit-for-tat spat
Want to beat Verizon's slow Netflix? Get a VPN
Exec finds stream speed climbs when smuggled out
GoTenna: How does this 'magic' work?
An ideal product if you believe the Earth is flat
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.