- TPG alleges Telstra exaggerated mobile coverage by up to one million square kilometres, misleading consumers.
- The ACCC is investigating the claims, which could lead to significant penalties for Telstra if found guilty.
TPG accuses Telstra of overstating network reach
TPG Telecom, the parent company of Vodafone Australia, has accused Telstra of misleading consumers by overstating its mobile network coverage by approximately one million square kilometres. TPG claims Telstra’s advertised coverage of three million square kilometres relied on the use of external antennas—costly equipment not typically used by average consumers—without adequately disclosing this requirement in its marketing materials.TPG argues that Telstra’s inflated coverage claims have misled consumers for over 15 years, potentially influencing customer choices and leading to significant financial losses for competitors.
Telstra has formally refuted allegations by TPG Telecom that it misled consumers regarding mobile network coverage. Channa Seneviratne, Executive for Technology Development and Innovation at Telstra, affirmed that its network remains substantially larger than competitors’, covering at least one million square kilometres more than Vodafone’s—an area exceeding 14 times the size of Tasmania. Telstra clarified that its coverage figures are based on measurements using external antennas, a methodology it asserts has been consistently applied and communicated. The company also emphasised the availability of detailed coverage maps on its website, enabling consumers to assess signal availability with or without the use of an external antenna. In contrast, Telstra criticised TPG for lacking similar transparency in presenting its network footprint.
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Why it’s important
Accurate information about mobile network coverage is crucial for consumers, especially those in regional and remote areas who rely heavily on mobile connectivity. If the ACCC finds that Telstra’s claims were indeed misleading, the company could face substantial penalties under Australian consumer law. This situation also underscores the need for standardized and transparent reporting of network coverage across the telecommunications industry to ensure consumers can make informed decisions.
As the ACCC continues its investigation, the outcome could have significant implications for industry practices and consumer trust in telecommunications providers.
