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Dave 14th March 2006 10:31 AM

Telecom Lies
 
Annette Presley of www.slingshot.co.nz upped the war of words with Telecom on TV One's Sunday program this week, when she urged us all to "stop believing Telecom's lies".

Of course she has a commercial interest in this, but she's dead right. Recent lies from Telecom include:

Broadband is about to get "faster, cheaper" (they are pushing this message hard in their advertising). Telecom's public affairs manager, John Goulter, has now confirmed that it won't be any cheaper for residential customers.

New Zealand is roughly equal to other developed countries in terms of Internet speed. It turns out the report cited by Telecom to support this claim compared the speeds that Telecom plans to have in the future with outdated speeds being phased out in other countries. The truth is that our connection speeds are up to twelve times slower than Australia, and an absolute joke compared to America.

You could win a trip to space. Telecom's latest competition will not actually win you a trip to space at all, just a very high-flighing plane ride. This is very different to the space flight they initially promised (I see they have changed the wording in their TV ads to say "the edge of space").

It's important to take the rhetoric in this argument with a grain of salt but there is little doubt that Telecom is routinely misleading us. This isn't something which only affects gamers and other nerds - our businesses are losing huge money because we can't share files with the rest of the world at the speed they need us to. We need to demand better.

Dave 9th May 2006 02:21 PM

Telecom CEO Theresa Gattung made the following comments on March 20th 2006, as part of a speech given to analysts in Sydney about the company's plans for the future.

"Think about pricing. What has every telco in the world done in the past? It's used confusion as its chief marketing tool. And that's fine.

"You could argue that that's how all of us keep calling prices up and get those revenues, high-margin businesses, keep them going for a lot longer than would have been the case.

"But at some level, whether they consciously articulate or not, customers know that's what the game has been. They know we're not being straight up."

Dave 8th June 2006 12:23 PM

Update: The Advertising Standards Authority has upheld a complaint that Telecom lied about the trip to space.


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