Sprint has decided to settle a class action lawsuit that alleged the company was engaging in anticompetitive practices by locking mobile handsets sold through the carrier. The company has agreed to provide unlock codes to current and former customers so that they can use their Sprint CDMA phones on other CDMA-enabled carriers, upon deactivation or after deactivation of the account. It has also agreed to add information about unlocking to its Terms and Conditions, and to train customer service personnel to address questions related to unlocking handsets.

The suit was originally filed by California residents Katherine Zill, William Mackenzie, Linda Mackenzie, and Gerasimo Molfetas, saying that Sprint violated California law by locking its handsets. They also alleged that Sprint failed to disclose the practice to customers, which then made it more expensive for them to switch carriers (since it required them to purchase a new phone). Specifically, the plaintiffs cited California's Unfair Competition Law, Business & Professions Code, and the Consumer Legal Remedies Act.

In its proposed settlement, Sprint maintains that it is free from any wrongdoing or liability to the class members. The company says, however, that it has agreed to settle the case "for the purpose of avoiding the uncertainties and expense of, and diversion of business resources resulting from, further litigation." As long as customers have no outstanding obligations with Sprint (translation: "Pay your bill, yo"), they will be able to obtain unlock codes upon request from the carrier. This will apply to any current or past customers who have purchased phones from Sprint between August 28, 1999 and July 16, 2007.

Sprint is, of course, not the only company being targeted by consumers over handset unlocking. The California Supreme Court greenlighted a class action suit against T-Mobile earlier this month—one that mirrors the Sprint lawsuit in almost every way. Additionally, two class-action lawsuits have been filed against Apple and AT&T so far, both of which address the iPhone-AT&T lock-in in addition to a number of other issues. Sprint's settlement, assuming that a judge approves the proposal, doesn't necessarily carry legal implications for other companies, but it may put pressure on them to settle similar lawsuits that pop up in order to avoid costly lawyer fees. T-Mobile is the most likely candidate for a settlement first, but we're willing to guess that Apple will kick and scream until it's forced to unlock the iPhone by a court or legislation—especially if it's receiving $18 per month per subscriber from AT&T.