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Thursday, March 10, 2011

WiMAX throttling lawsuit: Clearwire can't deliver the goods

via Ars Technica by jacqui@arstechnica.com (Jacqui Cheng) on 3/10/11

Wireless operator Clearwire has had a bumpy few months, and now things are getting worse. A lawsuit has been filed by 15 users over the company's throttling practices, accusing Clearwire of not delivering advertised "high-speed Internet" services to customers and charging them termination fees when they walk away unsatisfied. The group even says that Clearwire is engaging in a Ponzi scheme by selling service that it can't deliver in hopes of raking in enough money later to build out its network.

Customers began complaining in mid-2010 that Clearwire had begun to throttle their home Internet connections, sometimes as slow as 256Kbps. It wasn't clear (ba-dum ching) at the time as to what standard Clearwire was using in order to trigger the throttling—some users were told about monthly usage caps while others were simply told that there were certain times of day in which the network would be congested. Customers were frustrated at this lack of transparency, and complaints began piling up all over the Web.

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