Tech News
Sprint Nextel to provide unlock codes for handsets
By Stevie Smith
Oct 30, 2007, 14:24 GMT

Telecommunications network giant Sprint Nextel has revealed that it has agreed to allow outgoing customers to unlock the software on their handsets through proffered codes, which would enable the unlocked phones to operate on any CDMA network.

More specifically, Sprint Nextel has made the offer as part of a proposed settlement to a class-action lawsuit, which was filed in California in 2006, accusing the company of anticompetitive practices. The lawsuit claimed that Sprint Nextel’s software lock created a competition block because those Sprint customers looking to switch to another carrier could not do so without first purchasing a brand new handset.

In terms of customers looking to move towards alternative carriers, the likes of Verizon Wireless and Alltel are open to those Sprint subscribers looking to utilise a different code division multiple access (CDMA) network. However, the unlock software codes will not allow customers to shift over to AT&T or T-Mobile, both of which rely on GSM (global system for mobile communications).

"We believe this settlement is fair and reasonable," commented Sprint Nextel spokesman Matt Sullivan, who outlined to the Associated Press that while the Virginia-based company had denied the lawsuit’s claims it had settled the legal matter in order to "continue to focus on our business."

Although a state judge in California has given preliminary approval to Sprint Nextel’s proposed settlement, the final approval hearing has not yet been scheduled, added Sullivan.

According to Sprint’s proposal, all existing and former subscribers will be given an unlock code once their outstanding bills have been paid in full and their handsets have been properly severed from the network. Sprint customers who purchased a handset between August 28, 1999, and July 16, 2007 will be eligible for an unlock code.

Interestingly, T-Mobile, AT&T, and Apple Inc. (for the iPhone) are all currently facing similar unfair business practices lawsuits related to user restrictions.