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story category Clearwire Sued Over ETFs, Poor Service
Five fixed WiMax customers at heart of class action...
(old news - 11:21AM Friday Apr 24 2009)
tags: legal · competition · business · wireless · Clearwire Wireless
Clearwire's new Mobile WiMax service may be garnering all of the buzz, but the company still offers a significant number of customers their fixed pre-WiMax service, for which our user reviews have never been particularly stellar. This week finds the law firm of Tycko and Zavareei trying to organize a class action lawsuit (see press release and complaint) against the carrier for misrepresenting the quality of the connection Clearwire offers, but also for the early termination fees (ETF) of up to $220 the company charges consumers. From the complaint:
The complaint alleges that the majority of Clearwire’s subscribers are required to enter into one or two-year agreements. Should a subscriber decide to cancel Clearwire service for any reason, including lack of internet service or moving to a location in which Clearwire service is not offered, Clearwire charges the subscriber an Early Termination Fee. The complaint alleges that the Early Termination Fee constitutes an unlawful penalty, stymies competition, and is otherwise void and unenforceable.
Mobile carriers have faced (and often settled) similar suits forcing them to pro-rate their ETFs, something Clearwire already started doing for customers who signed up after March 1, 2007. However, most other wireless companies now void the ETF if a user moves out of the coverage area, something the lawsuit alleges Clearwire doesn't do. All five of the users cited in the class action are using Clearwire's older fixed technology.

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Forums » Clearwire Sued Over ETFs, Poor Service
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bshelly
Premium
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2 edits

Lawyers win, customers lose.

Aww crap! Here we go

As with ALL class action suits, the lawyers are the only ones that win.

I don't really want this company to fail because of crap like this. My Xohm/Clear Mobile WiMax service is serving me very well. These customers signed a contract that they thoroughly read, right?

Well, I guess you can't fix stupid, but you sure can sue the hell out of anyone you want in America.

Karl Bode
News Guy
join:2000-03-02

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Re: Lawyers win, customers lose.

As with ALL class action suits, the lawyers are the only ones that win.
Yeah! Stupid lawyers.

Though technically, the lawsuits against Sprint and Verizon originated thanks to tough consumer protection laws in Minnesota, and resulted not only in pro-rated ETFs, but thirty day money back guarantees as well as carriers no longer being able to extend the contracts silently every time a customer changed absolutely anything about their plan.

But yeah, other than that, stupid lawyers, useless lawsuits, etc.

Brownstripe Cust

@microsoft.com

Re: Lawyers win, customers lose.

Wow must be nice to feel like others should pay for service not received. You pretend like you know who is in the wrong but that's what our courts do. I have heard many complaints about Clearwire which is why I don't use them. Your right to come on this board and say stupid stuff was not given to you, it was demanded by citizens of this country and it was held up in the courts. Not a lawyer but I have needed them to get several companies to stop billing me for services not provided. If only one of you two would just pay my bills, I wouldn't need lawyers either.

cdru
Go Colts
Premium,MVM
join:2003-05-14
Fort Wayne, IN

Don't like the terms, don't sign the contract

Aside from Clearwire not fullfiling the terms of the contract and crappy service, what grounds are people suing over for the EFT?

If you sign the contract, and YOU chose to move, how is that Clearwire's fault? I'm presuming the EFT is to recoup the price of acquisition, equipment costs, and/or promotional rates. If you leave by your own choice, Clearwire still had those costs that may not have been recouped.

Yes it is nice that other companies void the contract if you move. And apparently that's nice for other companies. But don't bitch and moan that it's unfair that you are stuck with a bill for something you agreed to.

Bit
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join:2009-02-19
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·VOIPo
·Cox HSI

Re: Don't like the terms, don't sign the contract

Can't provide the service, then don't sell the service. That logic goes both ways.

The grounds for suing over the ETF is that if Clearwire provides only sub-standard service then they aren't living up to their end of the deal...Clearwire, with an unusuable product is in breech of contract, voiding it.

cdru
Go Colts
Premium,MVM
join:2003-05-14
Fort Wayne, IN

Re: Don't like the terms, don't sign the contract

said by Bit See Profile :

The grounds for suing over the ETF is that if Clearwire provides only sub-standard service then they aren't living up to their end of the deal...Clearwire, with an unusuable product is in breech of contract, voiding it.
If you reread my first sentence, I said aside from Clearwire not fullfilling the terms of the contract and crappy service. I agree that if they can't provide the service then there is a problem.

I did not read all 77 pages of the complaint. I have better things to do. But I did skim a few pages. That, plus Karl's summary mention one of the things that they were complaining about was that the contract wasn't being voided when people were moving to a non-covered area. To me, that isn't a reason that the provider legally should have to void the contract over. If they want to, great. But not legally forced to do.

Bit
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Re: Don't like the terms, don't sign the contract

I would agree. If they're moving, that is not Clearwire's fault and they should get the ETF. The only justification for Clearwire not getting the ETF is if Clearwire didn't live up to their end of the deal to provide decent service or obviously if the ETF wasn't in the agreement the subscribers agreed to (but I can't see that being possible).

If they're able to get out of the ETF for simply moving, what's next, building leases don't matter? "Hey I had to move".

Brownstripe Cust

@microsoft.com

Re: Don't like the terms, don't sign the contract

If Clearwire provided good service, they wouldn't need ETFs. ETFs are there to screw the customer and protect companies which can't or don't fullfil their end of the contract. It's a race to the bottom in customer service these days.

Bit
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1 edit

Re: Don't like the terms, don't sign the contract

Not necessarily. Installation, equipment and setup can be expensive so the ETF insures the company recoups those costs in the even the customer cancels before those costs can be recouped through the ongoing monthly fee.

Even the best companies have churn.

odnc
Premium
join:2002-02-04
Richmond, VA

Re: Don't like the terms, don't sign the contract

Then should not the ETF be prorated?


What installation and set up costs did ClearWire absorb?

Perhaps the modem? That is always returnable.

Bit
Premium
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Re: Don't like the terms, don't sign the contract

The used modem isn't worth as much as a new modem and there is the cost of setting up the account and coming out for the install.

Again, anyone who doesn't think the ETF is fair, shouldn't have signed the contract. Now if the service sucked, that is a different matter..then it's a case of Clearwire not delivering their end of the deal.
Sammer

join:2005-12-22
Canonsburg, PA

said by cdru See Profile :

But don't bitch and moan that it's unfair that you are stuck with a bill for something you agreed to.
There wouldn't be so much bitching and moaning if the companies didn't write such one-sided contracts. They tend to reserve the right to change the terms of the contract so why shouldn't consumers also be allowed to.

Bit
Premium
join:2009-02-19
00000

Re: Don't like the terms, don't sign the contract

Your choice is not to sign it.

cdru
Go Colts
Premium,MVM
join:2003-05-14
Fort Wayne, IN

said by Sammer See Profile :

There wouldn't be so much bitching and moaning if the companies didn't write such one-sided contracts.
And yet I've never seen a one-sided contract that didn't require both parties signing/agreeing to it.

They tend to reserve the right to change the terms of the contract so why shouldn't consumers also be allowed to.
If they change the terms of the legal contract, you have the right to reject them. Of course if you reject them, you also give up the service. From Clearwires very own Terms of Service (emphasis added):
quote:
1. Agreement Governing Use of Service. The current version of this Agreement (including the Service Plans) can be found at www.clearwire.com/company/legal/terms.htm. Clearwire may change this Agreement or the Service from time to time by sending you an email notification to the email address associated with your account, or announcing the Service changes in the "Service Announcements" section of Clearwire's website: »www.clearwire.com/company/legal/···ents.htm. Such changes will become effective once you have been notified; afterwards, and your continued use of the Service or Equipment will constitute your acceptance of any such changes. However, if you do not wish to continue Service after a change that is materially disadvantageous to you, you may terminate this Agreement by providing written notice to Clearwire within twenty (20) days of the effective date of the modification, and you will not be charged any Early Termination Fee(as described below)...
Cellular service has the same provisions usually any many people have gotten out of contracts they no longer want when a carrier raises fees, even for almost trivial things like directory assistance charges that most people never even use.
Sammer

join:2005-12-22
Canonsburg, PA

Re: Don't like the terms, don't sign the contract

said by cdru See Profile :

If they change the terms of the legal contract, you have the right to reject them. Of course if you reject them, you also give up the service.
That's the problem when there is a lack of real competition. I suppose you could give up indoor plumbing and live in a cave but I'm not suggesting you do so.

odnc
Premium
join:2002-02-04
Richmond, VA
There would be less bitching and moaning if the service were worth a damn.

boogi man

join:2001-11-13
Apo, AE
clubs:
·AT&T Southwest
·Clearwire Wireless
·Comcast

it's okay

just because you moved somehow makes it okay for them to hit you? how about the one way sales goons? masquerading as customer service when all they are doing is selling. no service at all.

so everyone has a choice to move? every time? well there are things much more important than a connection in life. If customer moves to a new location and the service cant move with how is it legal to charge them? just because people pay it doesn't make it right or okay.

perhaps people wouldn't feel the need to sue if the companies were a bit more reasonable in their terms.
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bshelly
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1 edit

Re: it's okay

The old pre-WiMax Clearwire equipment is different, you are getting fixed wireless installed at the location for which the contract is signed. There are equipment and installation costs that Clearwire can't just absorb if a customer does not fulfill their contractual obligation. With the fixed pre-WiMax service, Clearwire has every right to charge and NOT waive ETF's. I realize things do come up and people are forced to move, but how is that Clearwire's fault? It's not. The customer signs the contract committing to a set term and must pay up if they can't fulfill it.

Clearwire can justify the ETF since they probably have to pay employees or contractors to come out and uninstall the fixed wireless equipment when someone breaks their contract. That costs $$$.

boogi man

join:2001-11-13
Apo, AE
clubs:
·AT&T Southwest
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1 edit

Re: it's okay

so shit happens and ur screwed? it's one thing if they dont get equipment back in usable shape but come on. how about being reasonable?

i had the service now i may be doing an apples to oranges but mine wasn't portable it had to be plugged in and the service sucked.

edit: they didnt install anything. in fact once i had the thing home it took i want to say three days to provision. whats that all about?

they on the phone at least claim to be jsut like cable or dsl or even better except when it comes to turn in of equipment.

i did read the contract but it's been a while and i didnt then and dont now recall anything about once contract is up we will charge you first. then refund, once hardware shows up. which is what they told me. so i asked about local turn in to the guy i got it from to begin with claim its not possible etc.
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bshelly
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Re: it's okay

If they cannot provide the service that was specified in the contract, then they should consider letting customers OOC for a reduced ETF as long as they get their equipment back. I'm not against working with the customer, especially if they aren't receiving the service at a level that was sold to them. That's different than just up and moving and expecting them to waive the ETF. The big cell phone companies can afford to do that, but not a much smaller company like Clearwire.

boogi man

join:2001-11-13
Apo, AE
clubs:
·AT&T Southwest
·Clearwire Wireless
·Comcast

Re: it's okay

im sorry because they are a smaller nationwide company they get a pass?

i realize that's not exactly what you meant but being as though i am a customer that they did dirty im a bit sensitive to them in particular.

truly that's what i would be and am after is for companies regardless of size to be reasonable
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DannyZ
Gentoo Fanboy
Premium
join:2003-01-29
Erie, PA

So you are saying contract law should be discarded because it's not convenient to certain customers? If Clearwire holds up their end, why should they take the hit because a customer wants to break a contract they entered into willingly?
--
Out the 10BaseT, through the modem, down the co-ax, over the fiber, across the backhaul, past the edge router, off the network...nothing but net

boogi man

join:2001-11-13
Apo, AE
clubs:
·AT&T Southwest
·Clearwire Wireless
·Comcast

mitigating circumstances. the contract is to stiff. if i have to move due to some unforeseen issue. why does that mean that i have to pay extra? the point i think of etf's isnt to punish someone who moves but rather to keep a person from being a service provider butterfly. because that would be costly to the company.
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DannyZ
Gentoo Fanboy
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Erie, PA


1 edit

Re: it's okay

If the contract is too stiff, then the consumer should not have signed it in the first place. Yes, you should have to pay "extra" if you move to an unforeseen issue; paying the ETF is what you agreed to do after all. An ETF is not about punishment but about recouping certain costs, although refusing to prorate is probably used primarily as a way to prevent churn.

Contract law is pretty specific. Under which part of the law do you think the contract should me cancelled? (Hint: "mitigating circumstances" is not a legitimate reason) »en.wikipedia.org/wiki/Contract_l···contract
--
Out the 10BaseT, through the modem, down the co-ax, over the fiber, across the backhaul, past the edge router, off the network...nothing but net

boogi man

join:2001-11-13
Apo, AE
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·AT&T Southwest
·Clearwire Wireless
·Comcast

so this law then is absolute?

last time i looked it was these companies not being willing to meet the customer that cause lawsuits like these in order to get the law changed to reflect the current reality that these companies operate in.

because they are so big they have to work in numbers only which dehumanizes them. these suits force them to correct albeit not perfectly but better than before.
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DannyZ
Gentoo Fanboy
Premium
join:2003-01-29
Erie, PA

Re: it's okay

When a company is sued it is done within the confines of contract law.

Again, under what part of contract law do you think applies if one wishes to cancel because they move? What law gives someone the right to break a contract in this situation?
--
Out the 10BaseT, through the modem, down the co-ax, over the fiber, across the backhaul, past the edge router, off the network...nothing but net

Hpower
Roflmao

join:2000-06-08
Glendale, CA

1 edit

lol

Yea I got a feeling the lawyers are going to win this one. Let's see what happens.
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ScottCA123456

@stancera.org

About time.

Long overdue!

Bit
Premium
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ETF

It's one thing if you cancel for moving or you simply don't want the service, then I can see having to pay the agreed to ETF. But if the service sucked ass forcing you to go to another carrier then Clearwire is in breech of their agreement to provide the service and misrepresenting the service.

My DS1 ETF is $2000 with Megapath and if I cancelled as a result of substandard service I would certainly tell Megapath to pound sand and litigate if they think they'd get that ETF from me.
bshelly
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join:2002-02-17
Schaumburg, IL
clubs:

1 edit

Re: ETF

Bit, agreed. Perhaps affected customers could try working with the BBB or contact the State's Attorney General to try and find a resolution to the problem. Much better than suing which will not get customers anything worthwhile in the long run.

Bit
Premium
join:2009-02-19
00000

Re: ETF

I don't know about these guys, but in my experience people don't just go hire lawyers at the drop of a hat. It's usually after they've given up trying to be reasonable or after they're sued (or have debt collectors after them) for the ETF.

boogi man

join:2001-11-13
Apo, AE
clubs:
·AT&T Southwest
·Clearwire Wireless
·Comcast

the problem that i had was and is that they will not work with the customer. i really am not surprised at all that they are being sued.

im not much of one for litigation but in this case they have it coming.
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liberty2000

join:2009-04-24
Raleigh, NC

re

I have Clearwire, and they suck. they give the customer a poor user experience. The customer loses either way, if you keep the service or drop it. we lose.

clrwr1

@clearwire-dns.net

Re: re

Hi, liberty2000

This is Kevin with Clearwire support. I'm sorry to hear that you're not satisfied with your Clearwire service. I'd be more than happy to assist in resolving any issues that you're having. I wouldn't ask you to post any account information in a public forum, so please feel free to contact me at clrwr1@gmail.com and I will get back to your shortly.

Thanks for the feedback and have a great day!

Kevin

odnc
Premium
join:2002-02-04
Richmond, VA
·Clearwire Wireless

Contracts

I believe contract law is paramount to the smooth functioning of our society.

ClearWire fails to deliver an acceptable level of service. Lag storms of 500 to 1200 milliseconds for many hours, throughout the day, every day. Ten per cent packet loss is not uncommon. IMAP connections time-out, packets simply disappear. HULU videos are only bearable between 02:00 and 04:30. A simple game such as BZFlag is unplayable through out the day and evening. VOIP is hit or miss.

I believe in contract law; therefore, with out fail and in good time I remit every month, the sum of forty-five dollars.

I fulfill my portion of our agreement. Does ClearWire?

I am fortunate, Verizon's FIOS and Comcast are both present in my home.
--
This country needs an enema.

michieru

@rr.com

Re: Contracts

My question is why do you continue to pay for a service when Clearwire is not providing the service you originally signed up for?

This is the reason for that 20-day window to test out the service, any changes to your plan/service/hardware under law should nullify your current contract and you must be indicated of those changes. You are also given the opportunity to cancel if you do not agree with those changes stated.

I don't see why would Clearwire give an issue about moving since the service is wireless which generally the address only matters for billing and record purposes and has no effect on the service as long you are in within the coverage area. If you moved due and can no longer receive Clearwire services, then by contract law you should not pay for a service you cannot receive, waiving the ETF fee.

Sprint/Verizon will cancel my service without any charge if I moved into a location where I can no longer receive service from either carrier.

Any service or product is fast under certain conditions, but once you include your own conditions you type of service or product you have will be affected, and this can be applied to mostly all forms of products and services.

boldfield

@insightbb.com

People speaking here about ETFs obviously never have used CW

Clearwire DOES NOT PAY PEOPLE TO SET UP THEIR SERVICE. They give you a trashy modem and an install CD and send you on your way. They only offer Home install service after a certain amount of time IF you experience overwhelming problems. There *is* no recoup needed here. You don't buy modems, you rent them, and you have to return it at end of contract. You don't have an option to rent a used modem, or new, they just give you a modem (new or used).

clrwr1

@clearwire-dns.net

Re: People speaking here about ETFs obviously never have used CW

Hi, Boldfield

My name is Kevin and I'm with Clearwire support. I'm replying to your post in order to clarify a couple of points.

Clearwire doesn't actually use any software with the modem-based service (there is no installation CD unless you're using a mobile service). The technology is plug-and-play; The modem has a power cord and an Ethernet cord and a diagram.

Based on credit ratings, customers may either lease or purchase a modem. We strive to keep it simple and provide plenty of options to accomodate everyone.

If you have any questions about our service or equipment, please feel free to peruse the information on Clearwire.com or call us @ 1-888-clearwire.

Thanks for your feedback and have a great day!

Kevin

Rhumba555

@pacbell.net

Clearwire and all the other greedy corps!

Terms and Conditions be damned. The companies can't expect anyone to read AND understand all that legal bullshit. One-sided agreements are the ammo these money grubbing corps to lure unsuspecting customers into long term service contracts. If we had a contract that THEY had to sign in order to keep us as a customer do you think they would...of course not. And clicking a check box to agree in NO WAY constitutes a signature or agreement.
Forums » Clearwire Sued Over ETFs, Poor Service


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