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Sprint Has Terminated PrepaYd Wireless' MVNO Agreement, PrepaYd Threatens Lawsuit


LoneSnark
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Sprint has apparently pulled the plug on its MVNO PrepaYd Wireless. Anyone here have any insight into what caused the dispute? Did PrepaYd just not pay their bill, or perhaps they were knowingly activating devices from Virgin Mobile or iPhones. That would perhaps explain the anti-trust allegation, rather than the more reasonable breach of contract, given the two were contracted parties. 

http://www.prepaidphonenews.com/2014/02/sprint-has-terminated-prepayd-wireless.html

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Sprint has apparently pulled the plug on its MVNO PrepaYd Wireless. Anyone here have any insight into what caused the dispute? Did PrepaYd just not pay their bill, or perhaps they were knowingly activating devices from Virgin Mobile or iPhones. That would perhaps explain the anti-trust allegation, rather than the more reasonable breach of contract, given the two were contracted parties. 

 

http://www.prepaidphonenews.com/2014/02/sprint-has-terminated-prepayd-wireless.html

 

I don't know of any details.  But since this is not a common trait of Sprint, in fact it seems the opposite, I would have to conclude that there must have been serious breaches of contract on the side of the MVNO.  

 

Sprint likes the MVNO business and heavily promotes it.  If Sprint canceled the contract, the violations must be pretty clear cut and spelled out in the contract.  We will see how far these threats of lawsuits go.

 

Robert

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Sprint has apparently pulled the plug on its MVNO PrepaYd Wireless. Anyone here have any insight into what caused the dispute? Did PrepaYd just not pay their bill, or perhaps they were knowingly activating devices from Virgin Mobile or iPhones. That would perhaps explain the anti-trust allegation, rather than the more reasonable breach of contract, given the two were contracted parties. [/size]

 

http://www.prepaidphonenews.com/2014/02/sprint-has-terminated-prepayd-wireless.html

It's not a valid anti-trust case.  Such an allegation makes no sense, as Sprint's market position places it nowhere near "trust" status.  I agree with everyone else, it's much more likely that they are either allowing the use of prohibited hardware on Sprint's network (such as "flashed" Sprint phones in bad standing, Boost, or Virgin phones) or it's for financial reasons such as being substantially behind on payment for services.

 

I don't know of any details.  But since this is not a common trait of Sprint, in fact it seems the opposite, I would have to conclude that there must have been serious breaches of contract on the side of the MVNO.  

 

Sprint likes the MVNO business and heavily promotes it.  If Sprint canceled the contract, the violations must be pretty clear cut and spelled out in the contract.  We will see how far these threats of lawsuits go.

 

Robert

If it does go to lawsuit, I doubt it will get very far.  Some stupid little "cellular dropshipper" has nowhere near the legal capacity or budget that Sprint does.

 

Additionally, this suit, which has yet to be filed, will be filed in a very insignificant court if it ever is at all.  A county district court in Nevada is not the venue that would decide a matter of this magnitude.  I would expect a Federal district  court to be the first step if they were actually serious about going forward with this.

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The only thing I have ever heard about this MVNO has been about them frequently cutting people's service off days before payment was due or ran out so people have to shell money out early. 

 

Frankly, I expect that prepayd is at fault here as Sprint is usually very open to MVNOs.

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