Vodafone has escalated its battle with Telstra, urging the Australian Competition and Consumer Commission (ACCC) to investigate what it calls misleading mobile coverage claims.
The TPG Telecom-owned telco alleges that Telstra has overstated its network reach by up to 40% for more than 15 years, creating an unfair market advantage.
At the heart of the dispute is Telstra’s claim that its network covers three million square kilometres and 99.7% of the Australian population - a figure Vodafone argues is inflated by the use of external antennas and boosters, which are costly and rarely used outside remote areas.
Vodafone contends that Telstra’s true mobile coverage without external equipment is closer to 1.9 million square kilometres, a discrepancy of nearly one million square kilometres - roughly the size of NSW, Victoria, and the ACT combined.
The telco has pointed to years of advertising, sales materials, and annual reports that allegedly misrepresented Telstra’s coverage, potentially misleading consumers into believing they had broader access than reality allowed.
Telstra recently updated its website to clarify that its coverage figures depend on external antennas, but Vodafone insists this correction does not fully address misleading conduct.
For investors, the dispute raises regulatory and competitive risks in Australia’s telecom sector.
If the ACCC launches an investigation, Telstra could face reputational damage, regulatory scrutiny, and potential legal action.
Vodafone’s push for transparency may also reshape consumer perceptions, influencing market share dynamics.
Investors should monitor how the ACCC responds, as any ruling could impact Telstra’s pricing power, customer retention, and future expansion strategies.
At the time of writing, the TPG Telecom Ltd (ASX: TPG) stock price was $5.10, up 4 cents (0.79%) today. It has a market cap of approximately $9.48 billion. The Telstra Group Ltd (ASX: TLS) share price was $4.53, up 2 cents (0.44%). Its market cap was around $51.79 billion.
