AT&T loses first legal battle against Verizon ads

AT&T has lost the first battle in a legal war against Verizon Wireless to force the company to stop showing advertisements that compare its 3G wireless network coverage with Verizon's coverage.

A federal judge in Atlanta on Wednesday declined to grant AT&T a temporary restraining order that would force Verizon to stop showing the ads.

(Credit: Verizon Wireless)

AT&T filed a lawsuit in federal district court in Atlanta earlier this month asserting that Verizon Wireless' advertisements mislead customers by suggesting that AT&T subscribers cannot access wireless Internet services throughout its network. AT&T has called the ads blatantly false and has said that the commercials have caused irreparable harm to the company.

AT&T had asked the court to keep Verizon from running the advertisements until the matter is settled in court. But the judge on Wednesday declined this request.

The advertisements that Verizon is running show two maps that each indicate 3G wireless coverage. One map shows coverage for Verizon and the other depicts AT&T's coverage.

AT&T doesn't argue that the maps are incorrect in terms of showing its 3G coverage. But it says that Verizon is misleading customers by implying that they cannot use their phones or access the mobile Web when they aren't in 3G coverage areas. The reality is that customers can make phone calls and access the Internet from their phones using the company's slower EDGE or GPR networks.

Verizon argues its advertisements are simply pointing out the fact that AT&T has not invested enough in upgrading its network to handle increased traffic from smartphone devices, such as the Apple iPhone.

Verizon has modified its ads slightly to indicate that the map applies only to 3G coverage and not regular 2.5G service, which is adequate for making voice calls and connecting to the wireless Internet at slower speeds.

Verizon said in its 53-page rebuttal to the court earlier this week that AT&T is not suing Verizon because the claims are false, but because it doesn't want to face the truth about its network.

AT&T said it plans to press on with its case despite the fact that it lost the latest legal battle.

"While we are disappointed with the court's decision on our request for a temporary restraining order, we still feel strongly that Verizon's ads mislead consumers into thinking that AT&T doesn't offer wireless service in large portions of the country, which is clearly not the case," Mark Siegel, a spokesman for AT&T, said in an e-mail. "We look forward to presenting our case to the court in the near future."

[Super2online]

Is anyone surprise at this result? This is open and shut before it ever got started.

[mrcjacobs]

AT&T is only shooting themselves in the foot and bringing more attention to their crappy network. They should shut up and fix what's broke instead of complaining.

[jmonty--2008]

Yep. AT&T is just wrong here. For a change this actually *is* truth in advertising. They just don't like it. If the comparison is so darn unfair then AT&T should be able to easily make their own commercial to inform us about how great their coverage is compared to Verizon.

[solitare_pax]

I wonder how many new 3G transmission areas AT&T could have installed for the fees they are paying their overpriced lawyers to sue Verizon.

[Hernys]

This is a direct result of their marketing strategy. Instead of spending money on upgrading the netwrk, they decided to pay it to Apple (in the form of subsidies and revenue share) to have the iPhone. <br />So they ended up attracting more users, but not being able to keep them because their network sucks. <br />AT&#38;T went from being a network operator to a phone sales company. Until now it has been highly profitable, but in the short term it will turn nasty.

[OfficerNelson]

Not really.<br /><br />Prize line: "We look forward to presenting our case to the court in the near future."<br />Deja vu, anyone?

[daryno]

AT&#38;T used to advertise that they had less dropped calls than any other wireless provider. That is if you could get a call out to start.

[Michichael]

Translation of AT&#38;T's response:<br /><br />"FFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFFUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUUU"

[faceless128]

It doesn't really matter in the end. AT$T's coverage may suck, but as long as the iPhone is still the 'hot thing' they win. Hey, at least there's some comfort in knowing that others have been the must have before and then lost it, remember the RAZR?

[baggyguy1218]

Maybe At&#38;t should start crying. Seriously, just start balling, holding its hands out to the court system as if to say "My feelings are hurt, pick me up and love me!" What a pack of whinners! <br /> <br />Everyone KNOWS (notice the caps to emphasize) that At&#38;t's network is about as usefull as Fox and Friends is news worthy. FIX YOUR NETWORK!! ...cellphone company that is not Steve Doocy.

[baggyguy1218]

Maybe At&#38;t should start crying. Seriously, just start balling, holding its hands out to the court system as if to say "My feelings are hurt, pick me up and love me!" What a pack of whinners! <br /> <br />Everyone KNOWS (notice the caps to emphasize) that At&#38;t's network is about as usefull as Fox and Friends is news worthy. FIX YOUR NETWORK!! ...cellphone company that is not Steve Doocy.

[xaduurv]

I agree AT&#38;T's argument isn't that strong. After all, the graph doesn't say 5X more coverage, it says 5X more 3G coverage.

[Get_Bent]

Exactly. The chart is accurate as far as 3G coverage goes. AT&#38;T is just whining about their "dirty laundry" being aired in public.

[AluminumMonster]

Judging by my terrible call quality on my iphone that Verizon map seems about right.

[HlLLARY CLITON]

yea AT&#38;T is simplify bringing more attention to their lack of high speed coverage

[sdf0013]

Suck it up, AT&#38;T.

[DirtRidr]

Not too bright AT&#38;T. Spend your money fixing your network instead of wasting money going after competitors who point out the truth. And, while you are at it, make the coverage maps on your website differentiate between 3G coverage and non-3G coverage like it did before Verizon started airing the ads! I know the truth hurts but don't resort to deception.

[Jcurtis01]

Thats hilarious! I was wondering how long it would take ATT to remove the same maps from their own website! They have made it extremely difficult to access now. ATT only wants you to see if its in your city, they dont want you to be able to look at the big picture. you have to click on a city and zoom all the way out, than zoom in one notch and you can see the old maps. This is so funny. Deception is one thing this company is good at.

[BrandonWy]

You can, take a look at their coverage map, http://www.wireless.att.com/coverageviewer/#?type=voice&#38;3g=t zoom in +1, then check the blue box to show 3G coverage.

[DirtRidr]

Not too bright AT&#38;T. Spend your money fixing your network instead of wasting money going after competitors who point out the truth. And, while you are at it, make the coverage maps on your website differentiate between 3G coverage and non-3G coverage like it did before Verizon started airing the ads! I know the truth hurts but don't resort to deception.

[ecotony]

I'm so happy I'm only 38 days from being liberated from my AT&#38;T contract. Me and my iPhone will happily reside on the T-Mobile network. Sure EDGE is slow, but for what T-Mobile charges vs. AT&#38;T for the SAME SERVICE, I'm happy.<br />I won't be missing my AT&#38;T Wireless bill (Still LOVE my AT&#38;T FIOS U-Verse).

[ZaphodQB]

AT&#38;T needs to quit crying. If you read the text under the maps on the TV ads, it clearly states that the maps refer to 3G network coverage, and that "you can still make phone calls and connect to the wireless network outside of the 3G coverage area."

[Steve3003]

However you slice it, My guess is more than 50% of current AT&#38;T iphone users would leap to Verizon if the iphone was available on that network. I know I would. AT&#38;T has definitely not invested well for the future and if you look at the way they delayed the implementation of photos on txt messaging you get a good picture of how they are already strained on their system I can tell you that I have way too many dropped calls in good cell areas all the time. AT&#38;T Sucks.

[paulblank]

50%? I bet it's more like 90% plus.

[DchatQueen]

YEP..I agree. I am a Verizon customer and have been waiting for them to snatch that iPhone contract.

[hermantf]

AT&#38;T really messed up on this one. Before they made such a stink about this, I and millions of others would have probably never even thought twice about this Verizon ad campaign. But now, everyone knows about it and about how crappy AT&#38;T's 3G coverage is compared to Verizon's. And that they're cry babies! Verizon has every right to run this add. It is not misleading at all.<br /><br />I'm glad that justice was served....

[pretenderkc]

was AT&#38;T data plan customer since it was Cingular. <br />3G covergage in Metro-Phoenix area sucks!! <br /> <br />happy to discontinue AT&#38;T and now happy with Sprint MiFi. <br />Sprint provides true 3G with EVDO!! <br />long live Sprint!!! :-)

[okra0]

No kiddin , verizon may offer 3g in those areas but not all services, Sprint should release an add showing 3G maps from it and verizon where all services are available, and then they could show their 4G coverage too and a blank piece of paper for everyone else

[simmsfamily563]

I realize I'm not as wise as a judge but what is Verizom implying when they say - you can't reach your friend who doesn't have Verizon? Sounds like they are saying you can't connect without a 3G network to me.

[Da_Teej_Masta]

Whoever is in charge of PR for AT&#38;T is an absolute genius. Has AT&#38;T really been further even more decided to use even go need to do look more like?

[bishopsix2]

What? English isn't your first language, is it? Either that or you're posting comments using AT&#38;T's wireless network.

[Da_Teej_Masta]

Just done to empahsize the retardedness of AT&#38;T lol.

[topanaris]

@Da_Teej_Masta ROFLMFAO dude i have no idea what you just said so i cant stop laughing

[DchatQueen]

Ok...if you say so....but...plz...try to say it so we can understand it too....!!

[chrisx1]

AT&#38;T says the ads confuses everyone into thinking an AT&#38;T phone doesn't work in the areas without 3G coverage. <br />You can still use EDGE and GPRS.

[gerrrg]

Yeah, and I'd like to read my emails before I die.

[richto]

At least AT&#38;T is runing a true 3G network with future proof GSM HSDPA/UMTS handsets using SIM cards and capable of international roaming. <br /> <br />Verizon uses the dying CDMA based formats. Even Qualcomm the manufacturer of CDMA based solutions has had to give up in the face of superior GSM based solutions with their faster data speeds. CDMA is officially dead. <br /> <br />Everyone is moving to LTE+ a GSM based high speed format.

[Da_Teej_Masta]

Verizon's LTE network will be functioning in major markets by next summer. AT&#38;T will not be looking to switch to LTE until 2011. One would think the carrier who currently uses GSM tech would at least have the 1up on the LTE.

[eng555]

You are an idiot. Get your technology facts correct before posting completely false information.<br /><br />GSM is dead, not CDMA. GSM is based on low bandwidth time division multiplexing and can't support higher data rates and call capacities. <br /><br />UMTS is W-CDMA (wideband CDMA), so ATT is *already* using CDMA technology. <br /><br />LTE uses OFDM which is a follow-on to CDMA. Basically it uses the same orthogonal code channelizing of CDMA with improvements for more higher data speeds, etc.<br /><br />Qualcomm has not "given up" on CDMA. It is still the basis of 4G technologies. Learn to research a topic before you go making yourself look stupid online.

[poopermaker]

eng555 November 18, 2009 10:56 PM PST<br />You are an idiot?<br /><br />The remarks of an angry teenager. "Learn to research a topic before you go making yourself look stupid online."<br /><br />Need I say more?!? Too funny.

[DchatQueen]

Poop... <br />Yes, you should say more, cuz your comments did not discredit the ORIGINAL facts laid out by eng555.

[cabman5000]

AT&#38;T Should change its advertising to be "Less Bars in More Places", I know because I am a AT&#38;T customer, but not for long, hello VERIZON!

[lcview]

LOL @ "Less Bars in More Places."

[donpilot37]

A T &#38; T SAYS IT DOES HAVE MORE BARS. YOU NEED THEM BECAUSE BY THE TIME YOUR WAIT FOR THEIR SIGNAL AT MY HOUSE (I HAVE CELL PHONE AND HAD A WIRELESS AIR CARD WITH THEM), YOU NEED TO GO TO A BAR AND HAVE A DRINK. I AM LESS THAN 50 MILES FROM ATLANTA AND HAD TO PURCHASE AN AMPLIFIER TO GET 3 BARS.

[RuzeyVideo]

AT &#38; T is growing it's network via acquisition. They are taking over centennial wireless, I suspect it will be to close the Ft Wayne head quarters just to buy the clients.

[PixP]

What's AT&#38;T doing with all that profit money if it's not upgrading it's network? AT&#38;T has been around forever..... a lot longer than Verizon has anyways. Shoot. AT&#38;T should be number 1 in the country.

[EvanSei]

CEO's are partying it up in Vegas right now :)

[Knightro2]

Well, I used to work for AT&#38;T Wireless (the 1st one...prior to the Cingular merge) and I was on the Advanced Network Services Team. We were paid a lot more than we should have been paid for what we did. Plus...our health care was completely paid for. I only paid an extra $1 per month for the upgraded vision plan so it would cover designer frames. We also had big parties every few months. This was in Orlando and 1 night each year the center would close down and they rented out Universal Studios all night for just the employees and their family and friends. Free admission...free food. It was a blast. Atleast back then they invested in their employees. It was a great place to work...but even back then they had network issues.