Telstra takes Optus to court to stop ads
PUBLISHED: 07 Feb 2014 13:23:00 | UPDATED: 07 Feb 2014 15:59:31PRINT EDITION: 07 Feb 2014
David Ramli and Madeleine Heffernan
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TELSTRA FPO (TLS)
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| Volume 21075 | Value 105586.0 |
Company Profile
| Principle Activity | Telecommunications Carrier. Provision of telecommunications and information services, including mobiles, internet, and pay television. |
| Website | http://www.telstra.com.au/ |
| GICS | Diversified Telecommunication Services (501010) |
| ASIC | ASIC 051775556 |
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Telstra has taken its arch-rival SingTel-Optus to the Victorian Supreme Court over claims the smaller company is running misleading ads across Australia.
The case revolves around a series of Optus ads launched in late November that targeted Telstra’s mobile services.
In a submission to the Victorian Supreme Court seen by The Australian Financial Review, Telstra claimed an updated version that has been broadcast on TV since January 29 misrepresented the difference between the mobile networks of both companies.
Telstra filed an injunction, which led to an urgent hearing on Friday afternoon before Justice Elliott. Optus agreed to take down the contentious ad from its website and stop making new versions pending the trial date of Wednesday, February 12.
But Optus’ legal representative Peter Jopling QC successfully argued that the ads currently being aired on TV should remain untouched because they had already been paid for and that pulling them would cause a financial impost. He also noted the amount of time Telstra had taken to file the injunction.
Telstra argues that Optus’ ads could mislead customers into believing Optus and Telstra’s mobile networks cover 98.5 per cent and 99.3 per cent of the Australian landmass respectively.
“The representations are false, misleading and/or deceptive,” Telstra said in its claim. “Optus has contravened sections 18, 29(1)(b) and 29(1)(g) of the Australian Consumer Law contained in Schedule 2 of the Competition and Consumer Act 2010.”
Telstra said where its network covered 2.3 million square kilometres (28 per cent of the Australian landmass) as of February 6, 2014, Optus’ network could only reach 1 million square kilometres and that the difference was “material and substantial”.
A spokesman for Telstra said the difference in geography was important as “anyone venturing beyond cities or using their phone in back bedrooms and car parks understands.”
“We are not prepared to allow Optus to mislead the public,” he said. “It’s time for Optus to come clean and confirm the geographic coverage it offers.”
But Optus vice president corporate and regulatory affairs David Epstein said the telco would stand its ground in court and Telstra was challenging the pictures in its ads, rather than the actual words.
“There is no dispute that the difference is less than 1 per cent between the population reach of Optus’ network compared to Telstra’s. That hasn’t been challenged,” he said in a statement.
“We have been consistent and transparent in how we communicate the less that 1 per cent difference in the population reach of the Optus mobile network compared to Telstra’s and we will defend this position.”
Telstra said it had sent a letter to Optus on Thursday demanding the ads be stopped immediately. Optus replied on Friday refusing to do so, which resulted in Telstra taking the matter to court.
Telstra is demanding Optus remove all relevant ads from circulation and that its staff cease making the claims immediately while providing Telstra with all relevant legal costs.
The case continues.
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The Australian Financial Review
BY David Ramli
David covers telecommunications from our Sydney newsroom.
Stories by David Ramli
BY David Ramli
David covers telecommunications from our Sydney newsroom.
Stories by David Ramli
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| Companies | Telstra Corporation., Singapore Telecomm. |
| People | David Epstein |
| Topics | Technology /Telecommunications , Courts & Legal |
