Vodafone refers Telstra to ACCC over mobile coverage

TPG Telecom-owned Vodafone has reported Telstra to Australia’s competition watchdog and is “considering” legal action over mobile coverage claims.

The telco alleges that Telstra tweaked the wording of coverage claims on its website about five weeks after receiving a letter from Vodafone.

At the heart of the issue is how signal strength is measured: whether coverage claims are based on what a regular mobile phone is able to receive or not.

Vodafone theorises that Telstra's coverage claims are bolstered by “the use of a special external antenna and powered repeater usually installed on a building or vehicle”, citing “the ACCC’s 2024 mobile infrastructure report” - and wording tweaks on Telstra’s website - as proof.

Telstra confirmed using an external antenna but said "any suggestion that we've misled the public about the size of our network is completely untrue."

"Now that Vodafone has communicated to us how it’s chosen to calculate its coverage footprint, to help the public understand the difference, we’re highlighting that our 3 million square kilometres of coverage is based on using an external antenna," a Telstra spokesperson told iTnews.

"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.

"Using our coverage maps, customers have always been able to determine our level of coverage with and without an external antenna, so they always knew what to expect based on the device they’re using."

Corrective action

Vodafone said in a statement that it “has repeatedly asked Telstra to cease making the claims and to take corrective action.”

“While Telstra has rejected [our] claims, it has recently changed its website to remove some references to the contentious coverage claim or try to explain that it requires an external antenna,” Vodafone said in a statement.

“By making these changes, Telstra has effectively accepted the earlier claims were misleading, however Vodafone does not believe the changes have addressed the misleading conduct.”

Vodafone said it has “called for a regulatory investigation” into the situation and that it “is also considering legal action to require Telstra to cease the conduct and pay compensation.”

The claims by Vodafone, and evidence dossier, appear to have been first sent to the ABC. Its story says that the ACCC is “considering” the referral.

Vodafone said that mobile virtual network operators (MVNOs) also benefit from repeating allegedly inflated coverage claims.

Vodafone has long wanted access to Telstra's regional mobile network for roaming, and has previously sought access via the ACCC.

Its parent TPG Telecom agreed to a spectrum and regional network sharing deal several years ago, only to be blocked by the ACCC and a competition tribunal. It has since struck a similar agreement with Optus.

Telstra's spokesperson invited a side-by-side comparison with other networks.

"We’re all for transparency and industry consistency in how we report coverage and would gladly put our maps up, side-by-side, so that Australians can see the difference," Telstra's spokesperson said.

ACCAN backs investigation calls

The Australian Communications Consumer Action Network (ACCAN) said in a statement that the ACCC should investigate the claims made by Vodafone against Telstra.

CEO Carol Bennett said the suggestion Telstra has been overstating its coverage for more than a decade "is serious and damaging."

“Many Australians, particularly in regional and remote areas, sign up for expensive plans with Telstra because they believe it’s the only option for reliable coverage," she said.

"If this allegation is true - and the coverage advantage is not as big as people have been led to believe - regional consumers would be forgiven for feeling betrayed.

“We’re calling on the ACCC to investigate these allegations and take strong action if Telstra has misled consumers.

"Misleading and deceptive conduct has no place in any market, let alone a market for an essential service."