Subject: [NEXTEL-1] Illinois customers sue Sprint and Nextel, alleging deceptive fees

From: [email-masked]
Date: Sat, 19 Jul 2003 18:18:00 -0400

Posted on Sat, Jul. 19, 2003

Illinois customers sue Sprint and Nextel, alleging deceptive fees
Bloomberg News

Sprint Corp. and Nextel Communications Inc. have been sued by
Illinois customers who say the companies charged deceptive fees
for 911 service.

Lawsuits filed in Illinois state court say Nextel and the Sprint PCS
wireless unit charged customers a fee for the cost of emergency
911 service even though they already were compensated through
a separate charge.

Wireless providers in Illinois are required by law to collect
surcharges for the state or the city of Chicago to cover the cost of
routing emergency 911 calls. The lawsuits accuse Sprint and Nextel
of charging customers an additional amount that the companies
call a "federal" fee.

"This is another egregious example of how the telecom companies
are trying to increase their profit margins at the expense of
consumers," said lawyer Carol V. Gilden, who represents plaintiffs
in both lawsuits. The lawsuits were filed in the past two weeks.

"They're trying to make money off something that's been set up as
a safety net," Gilden said.

The lawsuit against Nextel was filed by Bravo Restaurants Inc. of
Chicago and Heights Glass and Mirror 2 of Bensenville. Thomas
Lang of Chicago sued Sprint. The lawsuits, which are similar to
earlier complaints filed in Massachusetts and Florida, seek to
represent all Illinois wireless customers of Nextel and Sprint.

Nextel spokeswoman Leigh Horner said that in addition to 911
costs, the fee being challenged in the lawsuit covers a system that
affects how telephone numbers are assigned and the cost of
letting wireless customers keep their number when they change
carriers.

Sprint spokesman Dave Devries said company officials hadn't seen
the lawsuit and couldn't immediately comment.

Under state law, Sprint PCS and Nextel collect 911 surcharges on
behalf of Illinois or Chicago, depending on the customer's location.
The lawsuits don't challenge those charges.

When those fees are collected on behalf of Illinois, the money is
turned over to the state, which reimburses carriers for costs
incurred related to the 911 service, the lawsuits say. When the
fees are collected for Chicago, the carriers keep some of the
money for administrative expenses, the lawsuits say.

The lawsuits claim Sprint and Nextel charge an unjustified
additional "federal" 911 fee, which the companies use to increase
profits and make their basic costs look lower than they are. Gilden
said the Nextel fee is $1.55 a month, while Sprint charges a similar
fee based on a percentage of the customer's bill.

http://www.kansascity.com/mld/kansascity/business/6336188.htm

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