CANBERRA - The ongoing wrangles between Telstra, the federal government and the consumer watchdog continued on a number of fronts today.
The Australian Competition and Consumer Commission announced that it was taking Telstra to court over an advertisement for its Next G mobile telephone network.
It has started proceedings in the Federal Court over the ad, which it alleges contravene the Trade Practices Act.
"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 said in a statement.
The ACCC said it was seeking an interlocutory injunction to restrain Telstra from making similar statements prior to a full hearing.
It is also seeking remedies for the alleged breach, including corrective advertising.
A date for a scheduling conference has yet to be set.
Telstra spokesman Peter Taylor accused the government of working in concert with the ACCC to act against the best interests of the telco's shareholders.
He said the ACCC had taken offence at one advertisement based on a customer testimonial.
"The ACCC is clearly hand in glove with the government in doing everything it possibly can to undermine the interests of Telstra shareholders," Mr Taylor said.
"This is anti-consumer, anti-investment, petty, regulatory garbage when Telstra is building a world's best mobile network with speeds as fast as any equivalent network in the world."
Meanwhile, Telstra will begin running full page advertisements in regional newspapers in response to a letter sent out across the country by Communications Minister Helen Coonan.
Households around the country have received letters saying that they are unable to access fixed line or wireless broadband.
In the letter, Senator Coonan promotes the Optus-Elders OPEL broadband joint venture, telling residents it will bring high speed internet to under-serviced areas of the nation.
Telstra Country Wide group managing director Geoff Booth said Telstra had more than 50 examples of the letter going to residents that had access to commercial broadband, even though the letter claimed they did not.
The company believes that about 500,000 letters have been sent.
"We have been forced to defend ourselves from these misleading and deceiving taxpayer-funded letters that damage the commercial position of our business," Mr Booth said.
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