Telstra accused of overstating its mobile coverage claims

Vodafone last week called for a regulatory investigation into Telstra’s mobile coverage claims, after alleging the telco has engaged in misleading or deceptive conduct for over 15 years by overstating the geographic reach of its mobile network by as much as 40%.

While Telstra boasts that its mobile network covers 3 million km² and 99.7% of the Australian population, Vodafone claims the company has been overstating the network coverage most Australians will experience by nearly 1 million km² — roughly the size of NSW, Victoria and ACT combined. Furthermore, it has allegedly been using these inflated coverage claims to make unfair comparisons against other mobile operators’ network coverage.

Vodafone’s analysis of network maps provided for the ACCC’s Mobile Infrastructure Report 2024 appears to show that Telstra has been making claims about its network coverage based on signal strength that can only be obtained with the use of a special external antenna and powered repeater that would usually be installed on a building or vehicle, and must be purchased at additional cost. By contrast, Vodafone bases its own network coverage claims on ‘outdoor coverage’ — a measure of the signal strength that a customer would receive using a mobile phone outside, with no special antenna or powered repeater.

Telstra has since stood by its coverage claims in an explanatory website post authored by Channa Seneviratne, Telstra’s Executive – Technology Engagement Advancement.

Seneviratne’s post states that Telstra takes a conservative approach to measuring its coverage footprint, using a combination of drive testing and desktop modelling. The company uses a standard mobile phone without an external antenna to assess voice call quality during drive testing, while also measuring the signal strength in decibel-milliwatts (dBm) and excluding anything below the minimum dBm level for a good-quality voice call.

Seneviratne noted that there are a range of factors that impact on mobile coverage, like the specific handset used, whether it’s used indoors or outdoors, the surrounding terrain, and the generation of mobile network it is connecting to (4G or 5G). There will also be some locations inside the coverage footprint where calls either drop out, cannot be made or vary in quality, due to factors such as physics and terrain.

According to Seneviratne, Telstra had referred to using an external antenna in order to help customers in regional and remote Australia who are at the outer edge of the network and may benefit from using one to maximise their overall experience. This does not mean the signal strength in these areas always requires use of an external antenna to make a voice call or access data within the coverage area.

The company thus remains confident that its coverage claims are correct, and while it has updated its website to acknowledge the recommendation of an external antenna, this is not essential. Telstra also noted that there is no industry standard for the way coverage is measured today, though it will continue to advocate for a consistent industry approach.

Vodafone’s owner, TPG Telecom, has reported Telstra’s conduct to the ACCC and is also considering legal action to require Telstra to cease the conduct and pay compensation. The Australian Communications Consumer Action Network (ACCAN) is also calling on the ACCC to investigate the allegations.

“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,” said ACCAN CEEO Carol Bennett. “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.

“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 km 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.”

Image credit: iStock.com/davidf