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Updated: AT&T Asks Courts To Force Verizon 3G Ads Off The Air For Twisting The Facts

AT&T (NYSE: T) asked the federal court in Atlanta late last night to force Verizon (NYSE: VZ) to immediately pull its ads, which they are saying could cause “irreparable harm.”

Here’s the argument: AT&T is saying that the side-by-side coverage maps that are in the ad are misleading—not because they are untrue—but because the “white space” could be interpreted as having no coverage in those areas (when in reality it means no 3G coverage). AT&T’s Mark Siegel tells USA Today: “If customers think they can’t make calls in the vast majority of the country…that could do us irreparable harm.” UPDATE: This afternoon, AT&T appealed directly to consumers, saying “recent ads from Verizon are so blatantly false and misleading, that we want to set the record straight about AT&T’s wireless data coverage.”

AT&T claims its 3G network covered 233 million people, or 75 percent of the U.S. population, and its slower EDGE data service covers 303 million people, or 96 percent of the population. When strictly talking about 3G coverage, it sounds like AT&T does in fact cover fewer people than Verizon Wireless, which says on its web site that its 3G network is available to 284 million people across the country.

So, is AT&T’s network is as bad as some consumers are making it out to be? AT&T claims to have the nation’s “fastest 3G” network, but it’s only available in a small portion of its coverage area. The rest is powered by 2.5G, although AT&T says, its 3G network reaches 75 percent of the U.S. population. Walter Piecyk, a Pali Research analyst, said: “The reality is that (AT&T’s) network is not performing well in many markets. And the perception among consumers is even worse than reality.”

AT&T has started to boost its network coverage in areas where the network is straining under the weight of tons of iPhone users. In September, the company said it will spend between $17 billion and $18 billion this year on infrastructure, of which more than two-thirds will go towards broadband and wireless.

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Nov 12, 2009 6:12 PM ET

AT&T's wireless data growth over a 12 quarter period Photo: Tricia Duryee

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Posted In: Legal, Companies, Apple, iPhone, AT&T, Verizon

  • Dave

    Isn't the commercial about 3G anyway and 3G devices?  They are admitting that it reflects 3G coverage.

    "AT&T is saying that the side-by-side coverage maps that are in the ad are misleading—not because they are untrue—but because the “white space” could be interpreted as having no coverage in those areas (when in reality it means no 3G coverage)"

  • Al

    Tricia, AT&T has been paying apple a premium price for the iPhone since it came out since 2007 and they have never raised any termination fees. It's still $150.00 and I checked with my neighbors and everyone around my area and because no one can get good coverage from Verizon or Sprint everyone around me is with AT&T so I'm sorry to say but Verizon does not have good coverage everywhere and they are not the best as they claim to be..

  • Tricia Duryee

    @Al I covered Verizon's early termination fee hike awhile back (http://moconews.net/article/419-verizon-doubles-early-termination-fees-no-other-carriers-follow-suit-ye/). Essentially, they are saying that phones are more expensive these days, so they have to increase the fees if someone leaves early. The fee will stay the same for cheaper phones. No carriers are following suit so far, but they are also already charging $200. Verizon is going from $175 to $350.

    And, I would just like to remind everyone that these are the numbers that the carriers are supplying themselves. In general, coverage is very personal. It doesn't matter if one reaches more people if it doesn't work in your own home. It's best to ask your friends and family nearby to see how well their service is working before making a decision.

  • Al

    Shaedenfrued, you have issues. I would love to work for AT&T if they would take me lol ...but getting back to the subject !  Why is Verizon raising their termination charges? Can you answer that? It's all over the news… Are they afraid of losing customers? What gives? No other carrier is doing this?

  • Shadenfreude

    Ok Al - you had me going until "...Why is Verizon raising the termination charges ? Something is going on with that company. Are they going under?" 

    Go back to your desk job at the AT&T propaganda dept.

  • Al

    AT&T coverage is great…I'm not sure where u live. But I have no issues… Verizon has no coverage in Dallas and that's why I switched to at&t.  I will never leave at&t.  Why is Verizon raising the termination charges ? Something is going on with that company. Are they going under? Why would a stable company have to raise prices? Especially termination fees? Hard time keeping customers ?? Verizon sucks!!

  • Shadenfreude

    Dear AT&T:

    Instead of filing lawsuits and legal motions how about fixing the damn coverage.  With all due respect to the other comments, AT&T coverage sucks as compared to Verizon (at least in my experience). 

    I don't own an iPhone because of you, I own an iPhone despite you.

  • JP

    Write is a**hole. He has no clue about technology. I have ATT from day iPhone launched in 2007. I am getting great coverage in IL . I traveled all over usa and had any issues with it.

    So get a life and f*** yourself.

  • Al m

    I agree with both of u. When I had verizon I couldn't use my cell phone from home. No bars…I love AT&T and my iPhone . I would never go back to verizon.

  • Eric

    Holy crap Tricia can you please show more bias toward Verizon. Your story is so full of crap that I had to open my windows to read it. Please do your research before writing this garbage in the future. I have had AT&T service for 2 years now and have better coverage in Michigan than I ever did with Verizon (I had to stand at the window of my office to answer my phone with Verizon).  According to phonescoop.com (a reputable website unlike yours) Verizon has to start from scratch with a new network in 2009 and that does not sound like very promising coverage to me. I want Verizon to talk a little more about what their coverge map is going to look like a year from now….oh yeah, they don't like to talk about that. I don't know who is more reputable these days….you or Verizon.

  • Dan Atkins

    This is a load of crap. I travel all over the US for business with an AT&T IPhone 3GS. I have nary a complaint about coverage or service in general. I use the phone for data and voice all the time logging plenty of minutes and data. This BS that AT&T network is poor is alot of baloney. People who write these articles havent a clue. If it was so bad, you think they would be adding customers instead of hemoragging customers liek Sprint?

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