As far as I know it does. We talked to SPRINT about it and all you have to do is say that you bought it from a former sprint customer and need to know how to clear it. They said that they would clear it if it is not.
You can't get sprint to clear the phone for use if the esn is bad. I'd like to bid but need to clarify if you had a past bill still owed on the phone. If so the esn is bad and no one can ever use it. Thanks.
I am just going by what they told me when I called them about my phones. This particular phone is the last one he got before we stopped using them. His contract was up and owed nothing on that particular phone.