Worst of the Week: I signed what?

Hello!
And welcome to our Thursday column, Worst of the Week. There’s a lot of nutty stuff that goes on in this industry, so this column is a chance for us at RCRWireless.com to rant and rave about whatever rubs us the wrong way. We hope you enjoy it!
And without further ado:
So, I hate to come down on wireless consumers, seeing as they kinda contribute to my paycheck and I am one of them, but the news last week that Sprint Nextel was fined more than $70 million in a California court for its early termination fee policy is the most asinine thing I have seen for some time. (And remember, I work with one Dano, Mike.)
Other carriers have also been targeted by such lawsuits in California, but the Sprint Nextel decision is expected to be a template for other resolutions.
For those not aware, wireless carriers ask consumers to sign contracts for up to two years in length (and up to three years in Canada, though I think that is just because of some sort of weird conversion where two American years are equal to three Canadian years) in exchange for a discount on the price of a wireless handset.
Now, in most cases consumers enter into these contracts willingly and are not forced to sign them, but if you were to believe rants on certain message boards (my favorite is isignedwhat.com) you would think these people had been hit with mind-altering gases the moment they entered their carrier’s store – and could not possible be held responsible for their actions.
I think it’s more of a case that these people are so captivated by the blinking lights and caress-ability of the latest wireless phones that they would give up a spare spleen or an ear to get one.
So, back to Sprint Nextel being hit with a $70 million fine. Apparently some of Sprint Nextel’s customers were not happy that they were being forced to pay back via an early termination fee the subsidy that Sprint Nextel provided for that super-cool new handset. So, instead of being adults and adhering to the terms of those contracts, a great number of people were herded into a class-action lawsuit against Sprint Nextel that claimed the carrier was being a big bully for requiring people to adhere to those contracts.
A part of me takes some pleasure in seeing a huge company get hit with a fine, but in this case I just can’t seem to stomach such a move. I, like more than 200 million Americans, own a wireless phone and have signed my name to a contract in return for a cheaper price on that phone. But I also had a choice, as did those 200 million Americans, to not sign a contract. I could have gone the prepaid route. A quick scan of prepaid offerings shows that most are probably a better financial deal for consumers, and prices for no-contract handsets are not much more than what you would pay for a contract offering.
Also, with Sprint Nextel in such bad shape, does anyone really benefit from that company now having to shell out $70 million in fines? I know Sprint Nextel does not think twice about requiring its customers to pay a $200 fee if they want to cancel their service even one day before their contract is up – though who really would cancel their contract with only one day left on their contract? (Oh, yeah, most Americans.) But I think we can be better than that. I say we give Sprint Nextel a break and allow the company to straighten out its current financial mess (or at least give its accountants some time to find the company check book) before paying the fines.
Or better yet, let’s revoke the fine altogether and require that those people that willingly signed contracts and accepted the subsidized handsets either pay back the subsidy or agree to uphold to the terms of the contract.
I now cede the soapbox to whoever has a rant to air.
OK! Enough of that.
Thanks for checking out this Worst of the Week column. And now, some extras:
–A mobile game company with the creepy name of Artificial Life said this week that it has launched a new game for Apple’s iPhone and iPod Touch. Not much news there, but the company claims it’s a provider of 3D/3G+ gaming technology. Now, I know a number of gaming companies claim to make “3D” games, but unless I have to wear funny glasses or images on the screen actually appear to come off of the screen there are no such things as 3D games. So can we quit this mislabeling or at least go way overboard and call them 8D games that include smell, feelings and the ability to do my shopping?
–Word from published reports seem to indicate that recently installed Moto co-CEO Sanjay Jha could take home compensation of more than $90 million if the company hits certain financial incentives. Nice gig if you can get it. Word from most RCR Wireless News reporters was that they would have taken the position for half of that incentive package. See Motorola, it does pay to shop around.
I welcome your comments. Please send me an e-mail at dmeyer@crain.com. Or, if you prefer, leave a comment in the space below.