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Federal Court Shuts Down Pay As You Go Wireless

Posted by ScuttleMonkey on from the pay-as-you-go-out-of-business dept.

self assembled struc writes "BCGI has been found guilty of infringing on pay-as-you-go wireless patents owned by Freedom Wireless. This means that cellular providers who use BCGI pay-as-you-go billing systems must immediately stop selling new service. For the next 90 days, as they wind down their service, they will have to pay Freedom Wireless 2.5 cents per airtime minute used PER CUSTOMER. This heralds a farewell to Cingular's Go Phone and Sprint-Nextel's Boost services, both powered by BCGI."

5 of 422 comments (clear)

  1. A bit more extensive writeup: by andreMA · · Score: 4, Informative

    here
    Doesn't include the information I was looking for, but does give a bit more detail.

  2. Whew! Safe! by Macgruder · · Score: 5, Informative

    From the summary: "This heralds a farewell to Cingular's Go Phone and Sprint-Nextel's Boost services, both powered by BCGI."

    In regards to Cingular, not exactly.

    Cingular has two forms of prepaid service (GoPhone).

    One is 'Pick-Your-Plan'. You have a reoccuring monthly charge on your credit or debit card which gives you a monthly allowence for service.

    The other is 'Pay-As-You-Go'. You buy a prepaid card off the rack, and use that to make your calls on your cell. As you use it up, you replace the card. That's the part that will be affected by this ruling.

    --
    I'm not crazy,I'm actively irresponsible.
  3. It's as crazy as it sounds by Mostly+a+lurker · · Score: 4, Informative

    The patents is question are 5,722,067 filed in 1998 and 6,157,823 filed in 2000.

  4. Doesn't affect everyone by Anonymous Coward · · Score: 5, Informative
    From another Reuters story on this topic:

    Cingular Wireless spokesman Mark Siegel said the injunction does not apply to the "vast majority" of Cingular's prepaid wireless customers, who use a different type of network technology.

  5. You guys have this all mixed up, only TDMA service by tomcio · · Score: 4, Informative

    is affected, which means the old ATT TDMA people "free2go" plan.

    The GMS Pay as you go, and pick your plan are not affected.