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May 28, 2008

Buuuuutttt, Your Honors!

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In what is a far reaching non-action by The Supreme Court; they have decided to not hear a case steeming from a class action against T-Mobile and AT&T and rendered by the CA SC. –

The U.S. Supreme Court on Tuesday dashed a bid by T-Mobile and AT&T to stave off a class-action lawsuit challenging the carriers’ policies against unlocking mobile phones.

The justices declined to review an October decision by the California Supreme Court that cleared the way for a lawsuit that attorneys claimed could represent “millions” of California customers.

In response to similar lawsuits, Verizon and Sprint, both CDMA carriers, have agreed to provide the software code to unlock cellphones after customers nationwide have completed their original contract, attorneys said. “That was the compromise we ended up with to get the cases settled,” said California attorney Robert Bramson, one of the lawyers suing carriers T-Mobile and AT&T.

As a consequence the CA SC ruling in favor of the plaintiffs suit stands unchallenged. So now the carriers in CA must proceed to trial or settle out of court for some agreed terms. My gut says they settle and agree to unlock phones. If they do that opens the door like the Carterphone decison of the 1980s for serious competition in the handset market in Calif. Calif is the biggest handset market of them all. Representing the biggest chunk of revenue for all of them on a State by State basis. The landscape is going to change very quickly I figure.

Trend? Biggest I see is internet handset sellers/resellers in CA offering unlocked handsets around the country. Once that cats out of the bag the carriers are going to have to open up.

Linky.

Previous posts here., here

Filed under AT&T, Litigation, T-Mobile by Dr. Dog

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