Telstra has revealed the addition of almost one million new mobile services in the six months to December 2011, but Sensis revenues plummeted 24 percent in 12 months.
The ACCC has instituted court proceedings against Telstra over Next G coverage claims made in advertisements, despite Telstra earlier withdrawing adverts to which the ACCC had objected.
The ACCC alleges that Telstra has engaged in misleading or deceptive conduct by representing that the Next G mobile network "covers the entire country" and has "coverage everywhere you need it". The ACCC is seeking an interlocutory injunction in the Federal Court to restrain Telstra from making further similar representations prior to a full hearing. It plans to use the new Fast Track List in the Victorian registry of the Federal Court, which it says "is intended to streamline court procedures in matters of this nature, thereby reducing the time and cost of litigation."
In August the ACCC issued a statement saying: "Telstra...has withdrawn and amended a series of television advertisements promoting its Next G mobile network after the ACCC raised concerns that the advertisements may mislead consumers about the coverage available on the network." ACCC chairman, Graeme Samuel, said: "The ACCC had particular concerns about Telstra's unqualified use of the taglines 'Everywhere you need' and 'Get the coverage you need with Telstra's Next G network' when the whole of Australia is not covered and coverage is not always available where consumers need it."
The ACCC said it was also concerned that Telstra's television advertisements conveyed the impression that service quality issues such as call interference and call drop-outs would not happen on the Next G network. It said at the time that Telstra had responded promptly, indicating that it would no longer use the taglines 'Everywhere you need it' and Get the coverage you need with Telstra's Next G network' and had amended its television advertisements accordingly.
The ACCC did not say why it had initiated legal action despite this prompt response to its earlier objections.
David Bass
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