Federal Court Shuts Down Pay As You Go Wireless

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."

Comments

Whew! Safe!

[Macgruder]

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.

Doesn't affect everyone

[Anonymous Coward]

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.