The tide may be turning for cell phone users who have long term contracts with carriers. Alameda County Superior Court Judge Bonnie Sabraw ruled on July 28 that early terminatino fees imposed by Sprint Nextel Corp. appears to have violated state law. The tentative ruling will force Sprint to pay $18.3 million to customers who were charged the fees, and credit $54.8 million to those who were charged but did not pay the fees.

Early termination fees typically range from $150 to $225. The class action lawsuit speaks to a long held debate over the fairness of the fees. For years consumers have complained about what is generally perceived as exorbitant rates for early cancellation. Attorneys for the class action suit and consumer advocates said the ruling was a victory for cell phone customers. It is unlikely that Sprint will prevail in the suit, as the momentum is growing for having oversight within the industry. Though the suit is targeted at Sprint, Verizon Wireless has already agreed to pay $21 million to settle its lawsuit.

Telecommunications companies justify fees as a way to recoup the cost of cell phones-many offered free in exchange for service contracts. But Judge Sabraw did not buy it, stating that contracts were established primarily to keep customers from leaving. She added there was no proof of any due diligence to justify the cost.

Meanwhile, the Federal Communications Commission is working on a plan to reduce cancellation fees over the life of the contract. Sprint plans to begin prorating fees next year. Verizon, T-Mobile and AT&T have already prorated their fee reductions. The FCC is also considering a deal to regulate fees and shield companies from class action lawsuits in the future.