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'100% coverage' campaign does not make clear limitations to coverage.
John Small (Commerce Commission)
Telco One New Zealand has been issued a Stop Now Letter by the Commerce Commission for potentially misleading claims made in its campaign promoting “100% mobile coverage. Launching 2024”.
A Stop Now Letter gives One NZ early warning of the Commission’s concerns and indicates an urgent request to stop the campaign.
Commerce Commission chair John Small said the Commission’s investigations into the campaign raises concerns that the campaign may be in breach of the Fair Trading Act and could distort competition in the sector. 
The letter identifies concerns that the campaign is potentially false and/or misleading due to the “absolute and unqualified nature” of the claim and a lack of clarification on limitations that apply to the mobile coverage. 
In particular, the limitations are that the coverage will only provide the ability to access text messaging (SMS and MMS only) from late 2024, with voice and data services following later in 2025, and the coverage will only be accessible in locations where a consumer’s mobile phone has line of sight to the sky. 
The promotional material does not explain what this means, the letter outlined. 
The Commission believes that the claim is likely to be understood by consumers as the ability to access all current mobile services in all locations in New Zealand, at all times, from 2024. 
“In our view, the claims are misleading because they give an overall impression that all currently available mobile services will be supported from next year, instant communication will be available and the 100 per cent mobile coverage will be available from locations where in fact that may not be the case where there is no line of sight to the sky,” Small said. 
“The requirement for line of sight to the sky may significantly reduce the usefulness of the service in a way consumers would not expect, which is not apparent from the claims.”
The Commission has requested that One NZ cease making the representations without providing “prominent qualifying information” explaining the limitations of its coverage. 
Small says the Commission will continue to monitor the use of all representations made by One NZ with regard to this campaign and “may consider further action as appropriate”. 
Spark corporate relations director Leela Gantman commented that the evolving nature of the satellite technology means there is still some way to go before it is comparable to traditional mobile coverage. 
“This is why we’re launching our satellite service with a trial to start with – recognising that in the early days it will only offer intermittent text messaging, and that the specific dates for more continuous coverage and voice calling are not yet confirmed, that we need to ensure it is integrated into our network successfully for our customers to get a great experience, and also that the necessary regulatory approvals are in place,” she said. 
“In short, there’s a lot of water to go under the bridge yet.”
The letter comes as One NZ announced it will raise its fixed line broadband prices from 2 October 2023. 
Its Fibre Unlimited and Fiber Max plans will go up by $6, its HFC Unlimited Broadband plan by $5 and ADSL and VDSL Unlimited Broadband plans by $7. 
One NZ says these price increases reflect rising input costs including third-party local network companies’ price rises. 
“Most of what you pay for a copper or fibre broadband connection is made up by your local network company, for example Chorus, Enable, Tuatahi First Fibre or Northpower,” said Joe Goddard, experience and commercial director of One NZ.
“We always try and offer you the most competitive prices, but with the local network companies putting their prices up and other rising operational costs which everyone across Aotearoa are facing such as utilities, transport and labour, we have unfortunately had to increase our prices this year.”
in December, the Commission launched a consultation on its proposal to publish customer service rankings, alongside wider performance information, for retail telco providers.
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