I feel like Aussie telcos used to fight all the time in public. And then later in court. Coverage is king and the big three are always trying to outdo one another. But even as we edge closer and closer to a satellite-driven future, we're still treated to a public chestbeating every now and then.
Enter Vodafone today, which has beef with Telstra over how it has been advertising its mobile network coverage (Telstra's crown jewel, if you will).
Vodafone has publicly accused Telstra today via a firey media release of misleading Australians about the true size of its mobile network.
Voda alleges that Telstra has overstated its geographic coverage by up to 40%—or nearly one million square kilometres—over a period of more than 15 years. Yikes.
In the strongly-worded media release issued Monday, Vodafone claims Telstra’s widely advertised 3 million square kilometre coverage footprint only applies when using an external antenna and powered repeater. That's equipment rarely used by the average mobile customer.
That means, according to Vodafone, most users would experience a network that covers significantly less territory than advertised, unless they’ve invested in specialised gear mounted on a building or vehicle.
And Vodafone's executives aren't being backwards about coming forward with this one:
“It appears Telstra has tricked Australians into paying top dollar for coverage they simply can’t get on a regular mobile phone,” said Kieren Cooney, Group Executive for Consumer, Data and Analytics at TPG Telecom, which owns Vodafone.
“By overstating the coverage available to most Australians by such an enormous amount… Telstra and its resellers have no doubt retained customers or attracted customers that might otherwise have chosen Vodafone or other TPG Telecom brands.”
The release further alleges that Telstra has made misleading comparisons with competitors like Optus and Vodafone by measuring its network with external antenna coverage, while other telcos report “outdoor coverage” based on regular handset performance.
Vodafone says it has asked the Australian Competition and Consumer Commission (ACCC) to investigate, though the contents of its letter to the regulator remain confidential.
It is currently unknown whether the ACCC will act on the complaint.
Telstra, in response to our questions, categorically rejected Vodafone's claims.
“Any suggestion that we’ve misled the public about the size of our network is completely untrue,” the telco said in a statement issued Monday.
“Many customers in regional and remote areas benefit from using external antennas to maximise their coverage. This is why we have used this as the basis for our coverage footprint.”
Telstra also noted that it has been transparent about the difference between coverage with and without antennas on its website, and that it would welcome side-by-side comparisons with Vodafone’s maps.
“On any measure, Telstra’s network is at least one million square kilometres larger than Vodafone’s—that’s an area more than 14 times the size of Tasmania,” the company added.
The standoff appears to be as much about optics as infrastructure. Telstra’s share price closed two-thirds of a percent higher on the ASX today, suggesting investors are not entirely convinced by Vodafone’s attack, or view it as more noise than material risk.
As both sides dig in, the battleground over mobile coverage—long a key marketing edge for Telstra—may now face greater scrutiny, particularly if the regulator decides to take a closer look.