Telstra still in hot seat over mobile network coverage claims

Australia’s top shareholder group wants independent checks after Telstra flips its network coverage story, while the Nationals are threatening the glare of a potential Senate committee probe.

Telstra CEO Vicki Brady. Picture: John Feder

Australia’s peak shareholder lobby group has stepped up calls for Telstra’s coverage claims to be independently verified after the telco flipped its position for the second time in a week, following accusations it had “grossly” overstated the size of its network.

Telstra said late on Friday that Australians could access the entirety of its three million square kilometre network using a regular mobile phone.

Its clarification came five days after saying its network measurement was based on external antennas, which can cost thousands of dollars, and prompted calls from the Australian Shareholders Association for independent verification.

Telstra chief executive Vicki Brady said the telco had “rigorously retested” its claims after this masthead revealed last week allegations from Vodafone owner TPG Telecom, which accused Telstra overstating its network by about one million square kilometres.

“Since that time we have rigorously retested our claims using desktop modelling and extensive drive test data we have gathered over time, along with a fresh round of lab trials,” Ms Brady said. “Based on that work we are confident our claim to have a mobile network that covers three million square kilometres was right all along.”

But Ms Brady acknowledged that there were areas within its coverage where “calls may drop out or can’t be made”.

“Our customers know there are ‘black spots’ and we know it too. That’s why we’re continually improving it.”

A TPG spokesman said Telstra’s clarification “changed nothing”.

“It’s a cleverly worded smokescreen that still says you need an external antenna to get to the full three million square kilometres of coverage,” he said.

Senator Bridget McKenzie in Canberra. Picture: NewsWire / Martin Ollman

“This position appears to contradict the real-world experience of many Australians complaining about coverage issues in areas where Telstra claims it has coverage. What’s now clear to Australians is that Telstra’s coverage mapping and advertised claims lack any credibility. This is yet another claim the ACCC will need to consider when looking at all of Telstra’s other conduct.”

The ACCC is examining the allegations. Amid the war of words between the telcos, Australian Shareholders Association chief executive Rachel Waterhouse called for Telstra’s coverage claims to be independently verified.

“The comments from last week still stand,” Ms Waterhouse said at the weekend. “An industry standard and independent verification (is needed).”

Nationals Senate leader Bridget McKenzie said given the breadth of Telstra’s market share, the company must be very clear about the extent of its coverage.

“If the company chooses instead to be ambiguous about the level of mobile coverage, then the full glare of a Senate committee is an option that should be considered,” she said. “Adequate digital connectivity is essential to participate fully in modern Australian life and the regions deserve nothing less.”

Ms Waterhouse said last week that a “collaborative industry approach would help ensure consumers and investors can rely on consistent, comparable coverage information”.

Ms Brady said: “The industry is already in conversation through the Australian Mobile Telecommunications Association to find a solution.

“This week we will launch our new company-wide strategy. Nobody will be surprised that the size, quality and reliability of our mobile network will be central,” she added.

“We know from talking to regional customers and stakeholders through the recent 3G closure just how important it is to be clear on expectations and understanding real-world customer experience. This isn’t an easy task with mobile networks given the number of factors that can impact on that experience, but it’s something we are committed to improving.”

Optus and TPG base their coverage on outdoor mobile phone use – not boosting a signal with external antennas. Optus chief executive Stephen Rue said: “Whether there needs to be an industry standard or not, I’ll leave to others.

“But what I would say is that we just need to be clear on our website as to how we calculate. And I think if you go to our website, you’ll see that we are clear.”

TPG first contacted Telstra in April about concerns the nation’s biggest telco had overstated its coverage claims. The pair have been going back and forth since before this masthead revealed the accusations last week.

Telstra’s wholesale customers – which include Aldi, Woolworths and Commonwealth Bank-backed More Telecom and Tangerine – immediately sought clarification from the telco to ensure they weren’t “tricking” their own customers.

On Thursday, Aldi removed all references to Telstra’s coverage claims from its website. Telstra’s budget offshoot Belong had done the same a day earlier. On Sunday, Aldi had not updated its website with Telstra’s new clarification.