Print 17 comment(s) - last by euclidean.. on Jul 9 at 8:30 AM

Sprint plans to file an appeal

Sprint is in hot water due to unpaid sales taxes, and the carrier is looking at a $300 million lawsuit. 

A lawsuit,  which claimed that Sprint didn't collect or pay taxes properly on wireless calling plans, was filed in New York back in 2011. This cost both local and state governments over $100 million. 

More specifically, wireless carriers are supposed to collect and pay sales taxes on the entire charge for the amount of minutes they sell for fixed monthly wireless plans. Instead of doing this, Sprint dubbed a portion of it as nontaxable and failed to collect about 25 percent of the taxes due to governments. 

New York Attorney General Eric Schneiderman took over the case last year, and now wants $300 million to cover the $100 million lost by state/local governments and for penalties. He said this should be a warning to others that tax fraud will be punished in the state.

“Sprint is disappointed in the court’s decision, and we intend to file an appeal shortly,” said John Taylor, a spokesman for Sprint. “With this lawsuit, the Attorney General’s office is claiming New York consumers, who already pay some of the highest wireless taxes in the country, should pay even more. As we have in the past, we will continue to stand up for New York consumers’ rights and fight this suit.”

New York Supreme Court Judge O. Peter Sherwood denied Sprint's request to dismiss the case on June 27. Another hearing is scheduled for July 24.

Sources: Bloomberg, CNET

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RE: Why the heck didn't Sprint just pay their taxes?
By BRB29 on 7/3/2013 7:51:25 AM , Rating: 1
Google it yourself. I know people who keeps getting kicked off the network or slow to a crawl after they reach a certain amount of data. But don't believe my words, I'll just let the CEO speak for himself.

For those that want to abuse it, we can knock them off," [Sprint CEO Dan] Hesse said at an investor conference Thursday. He said Sprint pares back data use for about 1% of users, a practice known as throttling.

Right....because their "truly unlimited data" is not truly unlimited

and their ads say this
"You'd be shocked how much data you use in a month," Sprint asks in a recent television advertisement. "What happens if you go over? With Sprint, you don't have to worry; only Sprint offers truly unlimited data."

Then they try to correct themselves with BS like this
The throttling only applies to customers who use excessive data while roaming on partnered networks -- "a guy in his house in rural Montana" for example. Sprint's fine print notes the carrier will begin throttling after 300 MB of "off-network" data usage.

it still looks bad so they tried again and failed again
Sprint has now clarified the situation with a blog post indicating the carrier does not throttle any customer's data usage, even for those with excessive roaming usage. The carrier does, however, have terms in place that permit it to terminate the contracts of users with heavy roaming usage, and it attempts to reach out to those customers and work with them before terminating their contracts.

Lesson: Don't sell unlimited data if you don't freaking honor it. They call it abuse, I call it using what you paid for.

you can find a heaping pile of complaints about Sprint in almost every category. Everything from constant incorrect billing to limited unlimited data.

By Camikazi on 7/3/2013 8:14:51 PM , Rating: 2
Man I love still having actual unlimited 4G on Verizon.

By mcnabney on 7/4/2013 12:29:28 PM , Rating: 2
My wife still has unlimited 4G LTE on Verizon. It is very sad - she only uses between 1-2GB a month...

By euclidean on 7/9/2013 8:30:24 AM , Rating: 2
I can only provide personal experience, and can vouch that I've never been kicked or throttled as well. While I do agree with you - unlimited should be unlimited - there is still fine print when you sign up for service.

Specifically: 3G Data caps at 5GB, 4G is 'truly' Unlimited. All of this applies to their network, and if you go over a certain percentage of total service (I believe it's somewhere near 35%, to lazy to look it up) off of Sprints Network, then they kick/throttle/etc. In fact, it's also a clause for them to terminate your contract all together - while their service area is larger than AT&Ts, a lot of that is made up with Roaming agreements, which cost them more to operate than their own networks.

“So far we have not seen a single Android device that does not infringe on our patents." -- Microsoft General Counsel Brad Smith
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