30 Jun 2010
Orange has been forced to withdraw adverts in which it claimed that its 3G service "covers more people in the UK than any other operator", after an Advertising Standards Authority (ASA) ruling.
A complaint was made to the ASA by rival Three in September 2009 against the £4m print ad campaign because the operator believed that it had the largest 3G network in the UK, based on population coverage.
Orange acknowledged that 3 currently has the largest 3G geographical coverage. However, it defended its advert by stating that it was based on “population as opposed to geographical coverage”.
The operator stated that it used the most up-to-date figures published by each of its competitors. This placed Orange on top with 93.39 per cent of the population covered, Three second with 91 per cent, Vodafone third with 85 per cent and O2 fourth with 80 per cent 3G coverage.
In its judgment, the ASA stated that the line, "The Orange 3G network covers more people in the UK than any other operator", was ambiguous and likely to mislead consumers because it did not make clear whether it was referring to population or geographical coverage.
The ASA explained that Orange had not shown the population coverage data it had supplied and it was not known if the figures provided on behalf of competing networks were collected and reported on the same basis as their own, making the claim “unsubstantiated”.
In a statement on its web site, 3 claimed that Orange did not respond to two offers for an independent adjudicator to decide on which company had the biggest 3G network.
Marc Allera, sales and marketing director at 3, argued that the claims made in the Orange adverts were completely unsubstantiated and misleading for consumers.
“Right now consumers struggle to get a consistent picture of how 3G networks compare when it comes to coverage. It is in the interest of consumers for there to be a definitive view on 3G network coverage,” he said.
“Three is pleased the ASA has now agreed that Orange’s adverts breached advertising codes. We believe that we have the UK’s biggest 3G network – both by population coverage and geographic coverage – and that we have the data to prove this in a like-for-like comparison."
Orange reacted strongly to the ASA’s verdict and said there was a need for independent verification that would provide the UK public with agreed information on mobile coverage.
“Whilst we accept the ASA's ruling we feel this decision effectively gags us, and the rest of the industry from talking about our networks as according to the ASA our claims are not directly comparable,” the firm said in statement.
“What's of most frustration is the company who raised the complaint, Three, has started to use the same claim that we have been banned from using – the biggest 3G network by population. This is absurd and makes a mockery of the ASA's ruling.”
As smartphones become increasingly mainstream, so the importance of 3G signal strength continues to grow. Customers who invest in a device such as the iPhone 4 or the Samsung Wave will want to be able to gain maximum usage while on the move.
The quality of a network's 3G coverage could impact significantly on customer choice.
However, it remains to be seen how Orange will market its 3G coverage and whether this ruling will have any substantial impact on its ability to attract customers.
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