Vodafone Australia, a subsidiary of TPG Telecom, has accused rival Telstra of misleading consumers by inflating its network coverage claims for over 15 years. The allegations, which have been forwarded to the Australian Competition and Consumer Commission (ACCC), centre on Telstra’s method of using an “external antenna” to demonstrate its coverage area, a tactic Vodafone argues could exaggerate Telstra’s reach by as much as 40%.
Vodafone’s spokesperson, Kieren Cooney, expressed concern that customers might have been misled into believing they could access Telstra’s coverage in areas where only specialised equipment is effective. He labelled the situation as alarming, indicating that many Australians might be paying premium rates for services they cannot reliably obtain.
Vodafone claims that Telstra presents coverage of more than three million square kilometres, while the reality for standard mobile phone users stands closer to one million square kilometres without the use of additional equipment. This disparity highlights the competitive tension between the two telcos, with Vodafone asserting that Telstra’s misrepresentation may have enabled it to retain customers who otherwise might choose Vodafone or its associated brands like TPG or Kogan.
In response to the complaints, Telstra has revised some of its marketing materials and coverage representations on their website. They maintain that their coverage metrics are accurate and that they provide transparency about the use of external antennas in their coverage calculations. A Telstra spokesperson reiterated their position, asserting that their mobile network is the most extensive in Australia and that any claims of consumer deception are unfounded.
Furthermore, Telstra underscored that regional and remote customers often rely on external antennas to enhance their mobile reception, justifying their coverage measurement approach. They invited comparison of their coverage maps with Vodafone’s, aiming to clarify the discrepancies and affirm their network investments in various regions where Vodafone apparently lacks coverage.
Overall, this dispute underscores the competitive dynamics in Australia’s telecommunications sector, with both parties positioning themselves strongly in the face of consumer scrutiny and regulatory attention.