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Customers Sue Clearwire Over Throttling, False Advertising

Article Comments  83  

Mar 10, 2011, 2:45 PM   by Eric M. Zeman   @phonescooper
updated Mar 10, 2011, 3:04 PM

A number of customers have filed a class action lawsuit against WiMax provider Clearwire, alleging that the company is guilty of false advertising and operates as a "Ponzi Scheme." The chief complaint arose from users who noticed their broadband service being throttled down to 256Kbps in late 2010, despite marketing materials that say WiMax customers will always have access to 1Mbps or more. At the time, Clearwire explained that it made adjustments to its customer experience optimization system, which might result in slow-downs for some users. Clearwire didn't define under what circumstances throttling might occur. Further, the customers allege that they were forced to pay early termination fees even though they were dissatisfied with the level of service provided by Clearwire. The customers believe Clearwire is guilty of selling services it couldn't support (hence the false advertising claim), and in so doing attempt to generate the capital needed to build the network out in the future (hence the Ponzi scheme claim). The plaintiffs note, "Rather than limiting its subscribers to a number that its broadband infrastructure can accommodate - such that Clearwire can make good on its representations regarding high-speed service and capacity - Clearwire signed up many more subscribers than it could handle so as to maximize revenue and profit." Clearwire stands accused of violating advertising and fair trade practices in six states across the U.S. Clearwire is currently in financial trouble, as it hopes to hammer out a better agreement with partner Sprint.

more info at Lawsuit (PDF) »
more info at DLSReports »

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Comments

This forum is closed.

This forum is closed.

bluecoyote

Mar 10, 2011, 6:23 PM

"Ponzi Scheme" and WiMax Rollout : Get on the lifeboat before this ship sinks.

This one is a gimme. I'll avoid laughing at the idiots who said the EVO was superior to the iPhone because it ran on the 'superior' WiMax network despite horrendous real world performance. I'll avoid laughing at the fact that every WiMax venture prior to ClearWire was labeled as a ponzi scheme (Internafta, GlobeTel, etc.) I'll avoid the fact I straight-up said Clearwire's financials were doomed from the start.

If you bought an Evo, enjoy your very slow 3G phone and the extra $120.00 you pay per year for a network you can't use.

If you're on Sprint, I'd strong recommend getting on one of the lifeboats before this ship sinks. (Verizon has unlimited plans for now.) Your rates are going to go up and your phones are going to conti...
(continues)
Lifeboat not need there, Sprint is smart enough to let Clear die on its own and then buy up the hardware at liquidation for reuse as firmware updated LTE hardware.

Clear may go under but Sprint's going nowhere.
...
Why would I get off the sinking ship... Well I am happy with sprint and will continue to be happy with them. I have had At&t, verizon, and sprint and as far as I am concerned verizon has been the worst of the three. I am happy to have dumped verizo...
(continues)
...
bluecoyote said:
This one is a gimme. I'll avoid laughing at the idiots who said the EVO was superior to the iPhone because it ran on the 'superior' WiMax network despite horrendous real world performance. I'll avoid laughing at t
...
(continues)
...
I am not a big Sprint fan(thanks to DP and CamelTowing), but I don't think that this lawsuit is gonna do anything to Sprint. Sprint has been considering LTE for a while and is ready to switch at any moment. WiMax may suffer and even go away, but Dan H...
(continues)
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CellStudent

Mar 10, 2011, 3:21 PM

Anyone who doesn't think Sprint is next...

...has their head buried in the sand.

"Unlimited 4G" doesn't work. There has to be a simple, well-defined threshold somewhere.

Sad to see that Clearwire didn't make appropriate disclosures here.
My thoughts exactly.
Unlimited Internet is silly anyway. Why should the guy who's using 1GB a month pay the same amount as the guy who uses 10GB a month?
...
Hopefully this will be tossed into the trash where it belongs.
You must be like the other millions of people who do not read their terms and conditions, Sprint specifically states that anything deemed abusive to the network can be canceled or suspended at anytime.
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You and your love of tiered data! Twisted Evil

Perhaps if a company actually spent $$$ on beefing up the network so it can handle say 5,000-10,000 users simutaneously and STILL maintail 3-6mbps+. That 5,000-10,000 simultaneous users per cell site wa...
(continues)
But they are keeping the option alive much longer than there competitors and should be commended for it. Very Happy

Right now your just blowing steam you have no proof or even dates about when this will happen. It could take place years from now and by th...
(continues)
pickles

Mar 11, 2011, 12:47 AM

DiamondTroll? CamelTrolling?

you seeing this, guise??? oooo sry you're probably busy posting sprint facts in the verizon forum...carry on then.
Name the time and place I posted anything in the VZW forum, dumbass troll.
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flip mode

Mar 11, 2011, 3:37 PM

a few thoughts...

after reading reports of clearwire looking for ways to fund its build-out including getting on its knees for T-Mobile with Sprint watching...it should've been obvious to regulators that the jig is up. oh wait, what regulators?

too often this happens....companies like clear and comcast throttle and block whatever they want. comcast charges as much as it wants. you cant go anywhere else besides at&t and uverse isn't everywhere. what happens if you don't want to deal with the idiots at at&t or their inferior network?

AOL "you've got mail!"

how does this help advance america again?
Caucasian

Mar 10, 2011, 3:19 PM

Please God...

Hesse, rethink this partnership.

After the network was revamped here I get 6-10 mbps down and I love that.

However the whiney b**** that is branded Clear needs to be kicked to the curb, this is ridiculous.
Clearwire seems so low rent. I mean they sell services on the side of the road
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Joby Dick

Mar 10, 2011, 6:52 PM

Clearwire...

I'm unsure of Clearwire's future. The fact that they are so dependent upon further Sprint investments makes me wary, and the fact that their CEO resigned is a little bit of a red flag to me.

I enjoy their service, but I could see bankruptcy in their future. We'll see.
 
 
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