Clearwire outsources more services; faces dealer credit policy charges

Cable's wireless provider, Clearwire (Nasdaq: CLWR), has outsourced still more operations and is answering questions about charges from three former dealers that they were told to lower credit standards to inflate subscriber numbers.

In its latest cost-cutting move, Clearwire said it would outsource day-to-cay customer care to TeleTech Holdings and move about 700 employees to the company. The move, Clearwire said, will be transparent to customers and will save money and improve operational efficiencies.

Meanwhile, a company spokesman is denying charges by three former dealers that they were encouraged to sign up customers with credit scores below the company's standard or even bypass credit checks.

"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 AK Kurji, a dealer with 19 stores in Texas, Florida and the West Coast. "Our numbers jumped."

Clearwire, said spokesman Mike DiGioia, has never authorized those types of practices although the WiMAX provider does have "flexibility" in its credit system.

For more:
- PCWorld has this story
- Bloomberg has this story

Related articles:
Clearwire hangs in there, adds subs, increases 1Q revenue
Clearwire hands off operations to Ericsson
Cable's 4G play: Will Clearwire stay in the picture?

Suggested Articles

Increased internet speeds will outpace premises WiFi capabilities, category cables can deliver the high speed and low latency demanded by consumers.

After announcing a deal to integrate the Amazon Prime Video app earlier this year, Virgin Media said that service is now available to millions of its TV…

NCTA-The Internet and Television Association is pointing to a new report that shows the cable industry had a $450 billion impact on the U.S. economy in 2018.