October 7, 2008
The Lid’s on the Coffin, Just Keep Nailin’!
In what has to be close to the end of the road for the carriers the Supreme Court has refused to review several state level appeals . Another words, lacks merit and most likely is established law. ‘No new ground here, move along…’ —
The Supreme Court dealt the wireless industry a setback by declining to review lower court rulings that found T-Mobile USA Inc.’s arbitration clause in service contracts do not prevent subscribers from lodging class-action lawsuits against the No. 4 mobile-phone carrier.
Opening a new term, the high court also let stand an Illinois appeals court decision affirming class certification of a 48-state early-termination fee class-action lawsuit against Sprint Nextel Corp. As a result, class-action complaints against T-Mobile USA and Sprint Nextel will move forward.
The carriers have 2 choices –
- Move forward with a full scale deployment of MtM plans as many are now doing as an option. In the same motion killing the need for ETF’s and arbitration and the contracts in which they reside. Or…
- Take their battle to the Congress thru their K Street minions. Only problem here is Congress has just gotten a big case of whoopa$$ about the bailout bill. I don’t think they will have a stomach for another round of corporate welfare to get beat on anytime soon.
My guess is that in the near term in States where the courts have ruled MtM plans will be brought prominently to the table as user choices.
Filed under Legislation / Regulation, Litigation, carriers, competition by Dr. Dog
Comments on The Lid’s on the Coffin, Just Keep Nailin’! »
Contracts are full of gotchas and with month to month, they will have to be more customer oriented. Yes, there will be the phone subsidy issue. If the devices become portable from one carrier to the next, volumes will go up and prices will fall, especially if they are not ties to one carrier.
The upside may be better pricing, but certainly no requirement for a one or two year contract.
The downside will likely be slower introduction of new devices and fewer high end devices since fewer customers will accept paying $400-$700 for an unsubsidized high end phone.