Telstra takes Optus to court over mobile coverage ads

Telstra has taken Optus to court over an ad that suggests little difference between the companies’ mobile coverage, and has so far successfully forced Optus to remove the ad from its website.

Optus launched a series of ads late last year regarding Telstra’s mobile services. According to Fairfax, Telstra last week claimed in the Victorian Supreme Court that an updated version of the ad broadcast on television since 29 January misrepresents the difference between the two companies’ mobile networks.

Optus reportedly agreed to remove the ad from its website and stop making new versions of the ad, pending a trial tomorrow.

But the ads will remain airing on TV - Optus’ legal rep Peter Jopling argued the TV ads had been paid for, and removing them would cause a financial impost, Fairfax reported.

The ABC lists one version of the ad in question as saying: "When it comes to the percentage of Australians the Optus mobile network reaches, there isn’t much difference between us and Telstra. In fact it’s less than 1%."

Telstra reckons the Optus ads could lead consumers to believe that the carriers’ coverage figures - 98.5% for Optus and 99.3% for Telstra - refer to the geographical coverage of the networks.

Telstra said its network covers 2.3 million square kilometres, whereas Optus’ reaches 1 million square kilometres, a difference that is “material and substantial”.

David Epstein, Optus’ vice-president corporate and regulatory affairs, said the company would defend itself in court.

Telstra reportedly wants Optus to pull all relevant ads, stop its staff from making the related claims, and cover Telstra’s legal costs.