Chevron
19-07-2007, 11:16 AM
Vodacom has successfully lodged a complaint against Telkom regarding their ADSL speed claims.
FCB South Africa, on behalf of Vodacom, lodged a competitor complaint with the Advertising Standards Authority of South Africa against Telkom?s advert for their DSL Internet access.
Vodacom submitted that Telkom should substantiate their claims about the speed of their ADSL services. Telkom currently advertises its services as ?DSL up to 384kbps?, ?DSL up to 512kbps? and ?DSL up to 1024kbps (4Mbps trial)?.
It was argued that Telkom must show that their ADSL speed claims are true for a significant proportion of ADSL customers, as the hypothetical reasonable person is likely to expect to regularly receive the claimed speeds.
Vodacom said that Telkom?s DSL claims are likely to mislead the reasonable consumer as to the availability of the claimed speeds.
Telkom used the 2006 MyADSL Broadband Report to show that their services perform at over 60% of advertised speeds and that their 4 Mbps service is the best performing broadband service in the country.
The ASA said that it had to determine whether Telkom?s ADSL offerings could deliver services at the claimed speeds, and if so, whether more than an insignificant portion of users are able to achieve this speed.
The directorate was unconvinced by Telkom?s response, and said that the claims ?DSL up to 384kbps?, ?DSL up to 512kbps?, ?DSL up to 1024kbps (4Mbps trial)? and ?4Mbps? are currently unsubstantiated.
The ASA ruled that Telkom should withdraw its DSL speed claims with immediate effect and that it may not be used again in the current format until new substantiation has been submitted, evaluated, and a new ruling is made.
This places Telkom in a difficult position to advertise and differentiate between its current DSL offerings and it is not certain how it will be able to market its broadband services without mentioning speed.
Vodacom versus Telkom
Apart from the negative effect on Telkom?s marketing campaign this complaint further reiterates that Vodacom is not scared of taking on its co-shareholder.
Vodacom is co-owned by Telkom and Vodafone, but there is strong speculation that Telkom is looking to sell its share in Vodacom.
Vodacom recently launched its own DSTV offering despite Telkom?s plans to launch Telkom Media which is in direct competition to Multicoice?s DSTV service. Vodacom further started to invest in its own fixed line infrastructure, an area where Telkom previously had exclusivity.
Despite various rumors of telecoms consolidations and acquisitions involving Telkom and Vodacom both maintain that they still have a constructive relationship.
http://mybroadband.co.za/news/ADSL/668.html
FCB South Africa, on behalf of Vodacom, lodged a competitor complaint with the Advertising Standards Authority of South Africa against Telkom?s advert for their DSL Internet access.
Vodacom submitted that Telkom should substantiate their claims about the speed of their ADSL services. Telkom currently advertises its services as ?DSL up to 384kbps?, ?DSL up to 512kbps? and ?DSL up to 1024kbps (4Mbps trial)?.
It was argued that Telkom must show that their ADSL speed claims are true for a significant proportion of ADSL customers, as the hypothetical reasonable person is likely to expect to regularly receive the claimed speeds.
Vodacom said that Telkom?s DSL claims are likely to mislead the reasonable consumer as to the availability of the claimed speeds.
Telkom used the 2006 MyADSL Broadband Report to show that their services perform at over 60% of advertised speeds and that their 4 Mbps service is the best performing broadband service in the country.
The ASA said that it had to determine whether Telkom?s ADSL offerings could deliver services at the claimed speeds, and if so, whether more than an insignificant portion of users are able to achieve this speed.
The directorate was unconvinced by Telkom?s response, and said that the claims ?DSL up to 384kbps?, ?DSL up to 512kbps?, ?DSL up to 1024kbps (4Mbps trial)? and ?4Mbps? are currently unsubstantiated.
The ASA ruled that Telkom should withdraw its DSL speed claims with immediate effect and that it may not be used again in the current format until new substantiation has been submitted, evaluated, and a new ruling is made.
This places Telkom in a difficult position to advertise and differentiate between its current DSL offerings and it is not certain how it will be able to market its broadband services without mentioning speed.
Vodacom versus Telkom
Apart from the negative effect on Telkom?s marketing campaign this complaint further reiterates that Vodacom is not scared of taking on its co-shareholder.
Vodacom is co-owned by Telkom and Vodafone, but there is strong speculation that Telkom is looking to sell its share in Vodacom.
Vodacom recently launched its own DSTV offering despite Telkom?s plans to launch Telkom Media which is in direct competition to Multicoice?s DSTV service. Vodacom further started to invest in its own fixed line infrastructure, an area where Telkom previously had exclusivity.
Despite various rumors of telecoms consolidations and acquisitions involving Telkom and Vodacom both maintain that they still have a constructive relationship.
http://mybroadband.co.za/news/ADSL/668.html