4G battle drags on
Cell C launched their first 21Mbps HSPA+ services in September 2010, offering consumers high speed broadband access at very competitive prices.
This launch followed Cell C’s re-branding in August 2010, during which former Cell C CEO Lars Reichelt also unveiled their 4Gs branding. He explained that 4Gs stands for ‘For Great Speeds’ and ‘For Great Support’.
MTN and Vodacom were unimpressed, and lodged complaints with the Advertising Standards Authority of South Africa (ASA) in October 2010, arguing that Cell C’s 4G and 4Gs claims are misleading and unsubstantiated.
The ASA ruled that the use of the term 4Gs was unqualified and ambiguous and ordered Cell C to withdraw the advertising immediately.
First appeal
Cell C lodged an appeal against this ruling with the Advertising Industry Tribunal, submitting that there is no ambiguity as they never marketed their network as “4G” but only as “4Gs”.
Cell C further argued that according to international standards, they actually do have a 4G network, citing a press statement by the International Telecommunication Union (ITU) from December 2010, and the fact that various manufacturers market their HSPA+ equipment as “4G”.
Vodacom hit back, revealing that the ITU’s statement actually only recognized the use of the term 4G in relation to evolved 3G networks, and in fact only sees IMT Advanced (hence LTE Advanced and WiMax2) as true 4G.
The Advertising Industry Tribunal subsequently dismissed Cell C’s appeal, saying that there is a “very strong likelihood” that Cell C’s original advertising would have been “4G” and not “4Gs.”
“It was only after criticism from the industry and technologically savvy consumers, and after admitting that its use of the 4G logo had created confusion, that Cell C changed the logo to the 4Gs logo now in issue by inserting the small ‘s’ into the logo,” the ASA ruling said.
Not the end
This is not the end of the 4G battle. The ASA has revealed that Cell C did lodge an appeal against the decision of the Advertising Industry Tribunal.
It is understood that Cell C is basing its appeal strongly on the ITU’s previous statement recognizing the use of the term 4G as marketing HSPA+, WiMax and LTE networks, and the fact that South Africa should fall in line with acceptable international standards.
This means that the 4G matter will now be heard by the Final Appeal Committee of the ASA – the last recourse that Cell C has at the ASA.
Portia Maurice
Portia Maurice, Vodacom’s Chief Officer of Corporate Affairs, said that Vodacom is in the process of preparing for the matter to be heard by the Final Appeal Committee.
The date of this committee meeting has not yet been set.
International battle
The use of the term 4G is also becoming a point of contention internationally.
In the United States, Anna Eshoo, a Democrat from Palo Alto, introduced a Next Generation Wireless Disclosure Act which will force wireless operators to guarantee minimum speeds that their networks will deliver when they market their services as “4G”.
“At the point of sale, wireless providers would have to provide specific information about speed, reliability, coverage zones, pricing, and the technology used for the service. Consumers would also be provided with a side-by-side comparison of the top 10 competing networks’ speeds and prices,” CNN reports.
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