Broadband customers of Clearwire have reportedly decided to sue the provider after claiming that their internet speeds were slowed down on purpose.
According to recent reports a number of customers of the US wireless provider Clearwire have decided to take legal action against the company after claiming that their internet speeds were slowed down by the provider on purpose. Customers have accused the provider of operating a ‘Ponzi Scheme’ stating that Clearwire is signing up more customers than it is able to cope with and is then charging extortionate fees when the customers try to get out of their contract because the service that they are receiving is not adequate.
It is claimed that the Clearwire service and method of operation is similar to a Ponzi Scheme because the company is said to be marketing a selling a service when it already knows that it will not be able to cope with the demand and will not be able to provide an ongoing service over the long term for the number of customers that it is trying to get onto its database.
According to reports the company is selling subscriptions to consumers before having the adequate infrastructure in place to cope with the increased customer base that results from this marketing and promotion of its services. Customers are now angry that the company is throttling its broadband and internet speeds, and unhappy customers are unable to get out of the contract without being charged.
Clearwire is said to have admitted that it has been throttling speeds for customers but has said that these measures are temporary ones that are based on network performance. The lawsuit that has been filed against the provider names fifteen people who are hoping to get class action status on the lawsuit in order to act on behalf of all Clearwire customers.
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Source – Wireless Federation