phone contract

[Chellie]

Hubby has a satelite phone. About 2 weeks before the warrantly ran out, the on/off button refused to co-operate. When he did finally get it switched off, he couldnt switch it back on. Phoned the company who we pay a monthly fee to for useage. Was told it may be a fault with the keypad (quite normal) but we were to send it back to the person who we purchased it from (a marine shop) and they were to pass it onto this company (actually it's the manufacturer) . All this was done by registered post, so they had received the phone just a few days before the warranty expired. They refused to cover the warranty and told us we would have to pay in excess of �150 to repalce the keypad, which they are now blaming us for breaking! This is nonsense, the phone has only been used about 30 times in the year we have had it. (for emergency use only). We did not sign an intital contract with them ,but pay them a usage fee monthly and the cost of any calls made. As they had the phone for 2 months, while the marine shop and them battled it out, over the warranty issue, I'd like to know can we refuse to pay the monthly fee for the 2 months that the manufacturer had the phone? They were also refusing to send the phone back! The marine company have been great and have had a terrible time trying to get anywhere with these people. Now it looks like we have a hefty bill to pay, even though my call was logged 2 weeks before the expiry. I think this is shabby business, however it appears they are knowm for refusing covering any warranty issue if they can get away with it. Unsure of my legal rights with this so would appreciate any advice.
Thanks in advance