Vodafone has directed explosive allegations against Telstra saying the telco has been misleading customers for more than 15 years about its coverage claims and has called for a regulatory investigation.
Vodafone says for more than 15 years Telstra has been dramatically overstating the reach of its mobile network by as much as 40 percent.
And it has been using these allegedly inflated coverage claims to compare against other mobile operators’ network coverage.
According to Vodafone, Telstra and its sub-brand Boost Mobile have been inflating the network coverage by almost one million square kilometres – that’s roughly the size of NSW, Victoria and the ACT combined.
“This is alarming. It appears Telstra has tricked Australians into paying top dollar for
coverage they simply can’t get on a regular mobile phone,” said Kieren Cooney, Group Executive Consumer, Data and Analytics at TPG Telecom.
“We are shocked that Telstra appears to have been overstating its coverage by so much for so long and we are calling on them to make it right.
“Telstra’s conduct could have misled consumers into believing they can get coverage in places that require special equipment.
“By overstating the coverage available to most Australians by such an enormous amount, Telstra and its resellers have no doubt retained customers or attracted customers that might otherwise have chosen Vodafone or other TPG Telecom brands such as TPG, Felix, Lebara and Kogan.”
Vodafone says Telstra has been boasting about these coverage claims and using them in its annual reports going back more than 15 years.
The alleged discrepancy was found after analysing network maps provided for the ACCC’s 2024 mobile infrastructure report.
This shows that Telstra had been making its network coverage claims based on signal strength that can only be achieved with the use of a special external antenna and a powered repeater which is usually installed on the side of a building or in a vehicle.
This type of equipment has a significant cost.
Vodafone bases its coverage claims on outdoor coverage which is a measure of the signal strength that a customer would receive using a mobile device outside with no special antenna or powered repeaters.
Here is Telstra’s response to the allegations made by Vodafone from a Telstra spokesperson:
“No matter how you look at it, Telstra’s mobile network covers more of Australia than any other. Any suggestion that we’ve misled the public about the size of our network is completely untrue.
“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.
“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.
“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 three million square kilometres of coverage is based on using an external antenna.
“Using coverage maps, people can see the many towns, highways and places where we’ve invested to provide coverage and Vodafone hasn’t.
“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.
On any measure, Telstra’s network is at least 1 million square kilometres larger than Vodafone’s – that’s an area more than 14 times the size of Tasmania.”
Vodafone’s owner, TPG telecom, has repeatedly asked Telstra to back away from these claims and correct them.
Telstra have rejected these claims but has changed its website to remove some references to coverage claims and explained that it required an external antenna.
TPG Telecom has reported Telstra to the Australian Competition and Consumer Commission and is also considering legal action which may result in Telstra paying compensation.
Here are the key allegations from Vodafone against Telstra:
– 3 Million Square Kilometres Coverage Claim: Telstra has claimed that its
mobile network covers an area of three million square kilometres. The actual
coverage received by most Telstra mobile users is nearly one million square
kilometres less. Telstra’s advertised coverage is based on using an external
antenna and repeater, which very few people have.
– Population Coverage Claim: Telstra has claimed that its network has 99.7%
population coverage. This claim is also based on using an external antenna
and repeater and ignores the fact that very few Australians have this costly
equipment.
– Comparative Coverage Claim: Telstra has asserted that its network covers
more than double the area of Optus’s network and around three times the
area of Vodafone/TPG’s network. This compares Telstra’s external antenna
coverage with Vodafone/TPG’s outdoor coverage, which is not a like-for-like
comparison.
