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Clearwire Lowered Credit Standards to Nab Subscribers
Regional Managers Come Clean About Credit Checks
by Karl Bode 03:55PM Tuesday Jun 07 2011
Clearwire's most recent earnings report indicated that the company now has 6.1 million wireless broadband customers, and hopes to have 9 million by the end of the year. According to a Bloomberg report, Clearwire managed to hit those numbers (in part) by essentially eliminating credit checks, a move that resulted in a surge of users -- but which then resulted in Clearwire losing these non-paying deadbeat customers shortly thereafter. "We would take a copy of their driver’s license and a two- month utility bill and we would send it in for a credit override,” said a Clearwire salesman works for 19 stores in Texas, Florida and the West Coast. "Our numbers jumped." Clearwire says this isn't official policy and was the result of regional managers looking for a subscriber spike and higher commissions -- apparently unconcerned about the fact these new customers would ultimately be money losers.

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S_engineer
Premium
join:2007-05-16
Chicago, IL

1 recommendation

Thats ok.....

The invention of the "sub-prime subscriber" from Clearwire. Nice....maybe they hope they'll become to big to fail.....
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FFH5
Premium
join:2002-03-03
Tavistock NJ
kudos:5

Re: Thats ok.....

said by S_engineer:

The invention of the "sub-prime subscriber" from Clearwire. Nice....maybe they hope they'll become to big to fail.....

Sprint has started to try and get Clearwire under control. Maybe this info shows why. Pargus Capital thinks Sprint getting more say so is bad: »Clearwire Investors Annoyed by Sprint End Game Maybe Pargus didn't care how Clearwire was getting more subscribers if it drove their stock price up.
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WHT

join:2010-03-26
Rosston, TX
kudos:5
said by S_engineer:

The invention of the "sub-prime subscriber"

VERY well put.

heat84
Bit Torrent Apologist

join:2004-03-11
Fort Lauderdale, FL

Re: Thats ok.....

said by WHT:

said by S_engineer:

The invention of the "sub-prime subscriber"

VERY well put.

Yeah. He said what I just said 2 words.
--
Bit Torrent is my DVR.

pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD
said by S_engineer:

The invention of the "sub-prime subscriber" from Clearwire. Nice....maybe they hope they'll become to big to fail.....

I was gonna say, who's running this company, Bank of America?
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Mannus
Premium
join:2005-10-25
Fort Wayne, IN
Reviews:
·Frontier FiOS
·Vonage

Re: Thats ok.....

said by pnh102:

said by S_engineer:

The invention of the "sub-prime subscriber" from Clearwire. Nice....maybe they hope they'll become to big to fail.....

I was gonna say, who's running this company, Bank of America?

You read my mind. Must be former banking officials in charge.
wolfy339

join:2005-04-30
Edmonds, WA
said by pnh102:

said by S_engineer:

The invention of the "sub-prime subscriber" from Clearwire. Nice....maybe they hope they'll become to big to fail.....

I was gonna say, who's running this company, Bank of America WaMu?

There, fixed it for you
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patcat88

join:2002-04-05
Jamaica, NY
kudos:1
said by S_engineer:

The invention of the "sub-prime subscriber" from Clearwire. Nice....maybe they hope they'll become to big to fail.....

Wrong. Ampd Mobile was the inventor of the sub-prime subscriber.

Fidud

@mycingular.net

Do they waive at least activation fee

Or will offer prepaid (unlikely after they pulled off rover)? Indoubt most of those customers are willing to spend $40 each month. Unless they think this way by attracting more financially sloppy people, they attract more stupid people who substitute landline for wireless for "cheap" and "hassle free setup" experience.

MrMaster
jetsetter
Premium
join:2000-12-16
St Thomas, VI

should have had better prepaid plans

If they would have had better prepaid/paygo plans they wouldn't have needed to resort to all these credit overrides.
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firephoto
We the people
Premium
join:2003-03-18
Brewster, WA

Re: should have had better prepaid plans

said by MrMaster:

If they would have had better prepaid/paygo plans they wouldn't have needed to resort to all these credit overrides.

I don't know how clearwire is but most month to month things have you paying a month in advance which makes this credit check bs just bs really. All they have to do is cut them off when they don't pay and the month they have paid for runs out.

Then again people can't get their {random} service rates set by some random number generated based on how they pay their bills (not if they pay their bills). . . it's sad how the scams people think are necessary survive year after year.
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tmc8080

join:2004-04-24
Brooklyn, NY
Reviews:
·ooma
·Optimum Online
·Verizon FiOS

clear put up big money

but returns are slow.. wonder why?
data isn't everyhing it's cracked up to be... especially subscription data when so much wifi leaks everywhere for free, or ahem 'value added'

there's at least 3-10 billion in wireless licenses & hardware contracted service prepaid by clear, and if they can't deliver the subscriber growth they're screwed, royally, so you'd be surprised up compromising you'd be to get the money rolling in!

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK

No Credit required! No income required!

You too can be a homeowner! subscriber!

Hmmm. Where have we seen this type of thing before?

Let me think.... hmmm.

At least they can't pawn the debt off to Fannie May and Freddie Mac and then blame the Government!
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patcat88

join:2002-04-05
Jamaica, NY
kudos:1

Re: No Credit required! No income required!

Ampd Mobile.

KrK
Heavy Artillery For The Little Guy
Premium
join:2000-01-17
Tulsa, OK

Re: No Credit required! No income required!

Yeah, and they got an education, fast.

... at least they couldn't dump it off on taxpayers, either.
eieiomax

join:2010-11-23
Washington, DC

Non issue

Home many Clear subscribers did this attract.. When 80-90% of their customers are from Sprint..

100-200K tops?

mix

join:2002-03-19
Utica, MI

Re: Non issue

Thats what I am trying to get/figure out from the article. The subscriber count quoteed, that's not Clear customers right? That is mostly Sprint customers with 4G phones, right? I find it hard to believe 6.1 million people are using Clear for "broadband internet."

heat84
Bit Torrent Apologist

join:2004-03-11
Fort Lauderdale, FL

Did they not learn from the crash of 2008?

The banks did the same thing to sell houses and look what happened.
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Snowy
Premium
join:2003-04-05
Kailua, HI
kudos:6
Reviews:
·Time Warner Cable
·Clearwire Wireless

"No one fails Clears credit check"

That's what I was told when I called their CS ~3 weeks ago.
I've had Clear for the past ~3yrs as a backup to Road Runner & I wanted to add the "Clear to go" for a friend to use.
The CS said "All I need to do is run a fast credit check", I responded "No you won't", he responded "No one fails Clears credit check", I responded "It's not that I'm concerned about passing it, I just don't want Clear running it for what's basically a $500 commitment on my end."
The CS backed off, saying he didn't need to run one,
I got the hardware from Clear a few days later.
rody_44
Premium
join:2004-02-20
Quakertown, PA
Reviews:
·Comcast

4 edits

Just another

Comcast, Verizon, Time warner, now we can ad clear to the list that allows non paying customers to subscribe. Its a numbers game people. You have to keep wall street happy no matter what it takes. If these companies actually had to list the amount of write offs at the end of the quarter it wouldnt happen. As is tho these companies get to claim it as income even tho they know full well its going to be listed as a writeoff next quarter. The funny thing is is write offs never make it on the quartely reports of these companies. As it is its standard accounting. If ever changed. You would be surprised how it works within at least comcast, verizon and time warner. Clear has to be given some credit in at least they make you show your drivers license or state id unlike the others mentioned. I know a person that was turned off by verizon and they called verizon and gave them their dead sons name and social and verizon was happy to come out and do a brand new install for them. Hello verizon its the same last name and address and maybe that should have been a clue. Forget the fact he died 5 years ago in a car accident. Or comcast my personal favorite. !8 times installing a person without a single payment. Yes, that is 18 freaking times which lasted over 4 years of the person being serviced without a single payment.