ACCAN, the national peak body representing communications consumers, is deeply concerned about allegations levelled at Telstra today by rival telco TPG Telecom.
TPG claims that Telstra - which is Australia's largest telco by some margin - has misled consumers by making false claims about the size of its mobile network in its advertising, website content, annual reports and other sales material.
Consumers expect truthful marketing. Whether it's a glossy TV ad, a website banner, a statement from a representative on the radio, or a promise during an in-store conversation: Australians rely on these statements when choosing a provider.
ACCAN CEO Carol Bennett said that the suggestion that Telstra has been overstating its coverage for more than a decade is serious and damaging.
"Australians take note of claims made by telcos about their network size, network reliability and network performance in deciding their mobile provider. They do so on the presumption that telcos are honest with this information."
"Consumers deserve accurate information about when and where they will receive coverage, the reliability of that service and the cost."
"When consumers are misled, markets are distorted, and trust is eroded."
"Our research shows that 41% of consumers have limited faith in their telco to act in their best interest -and almost a third said the coverage they received didn't match what they were told to expect."
"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. 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."
"Consumers not only expect honesty, they have a right to accurate information under consumer law."
"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."
"If telcos want to earn back trust, they need to start with transparency. They need to be much more honest about their services, their coverage, their costs."
"The fact that we cannot rely on what Telcos tell us about their coverage is why ACCAN support the Government's National Audit of Mobile Coverage, which is gathering real-world data through 180,000 kilometres of on-the-ground testing each year. That information will help build an independent coverage map, giving Australians accurate, unbiased insight into where they can expect service," Ms Bennett concluded.
