So Verizon (NYSE: VZ) Wireless is running a series of clever ads these days, with the common thread of the campaign being pointed jabs at AT&T (NYSE: T) and Apple (Nasdaq: AAPL). Recent ads for the Motorola (NYSE: MOT) Droid phone, which launches tomorrow with a Google (Nasdaq: GOOG) Android operating system (and to rave reviews), point out all the things an Apple iPhone can't or won't do for you. The barbs aimed at AT&T make fun of Ma Bell's tiny 3G coverage areas and questionable connection quality.
And AT&T thinks Verizon is taking the jokes a bit too far. Specifically, AT&T has filed a federal lawsuit against Verizon Wireless over the maps used in Verizon's "There's a map for that" commercial. The ad puts Verizon's and AT&T's 3G coverage maps side by side, and Verizon's high-speed service clearly covers a lot more ground than the competition. AT&T doesn't have any problem with the claims Verizon makes, but can't stand the map choices.
Where AT&T doesn't have high-speed 3G coverage, its nearly ubiquitous 2G/EDGE network picks up the slack. Moreover, you're pretty much guaranteed to get an AT&T dial tone anywhere in America. The 3G map paints AT&T's coverage in stark black-and-white colors, which AT&T says might make customers think that their AT&T phones won't work at all in Savannah or Santa Fe.
This map choice, says AT&T in its court filing, is causing "substantial and irreparable harm" to AT&T's goodwill and marketing efforts. Furthermore, "as a result of the misleading claim, AT&T is losing incalculable market share." AT&T doesn't want any changes to Verizon's message, which includes the words "3G Coverage" under every map shown, but just wants that awful map taken out. The map itself was lifted from AT&T's publicly available coverage information, but the “coverage” section of AT&T’s website doesn’t break out a 3G map. It looks like AT&T is doing its best to hide spotty 3G coverage. All AT&T wants to show us now is the much more impressive 2G coverage map, with no mention of 3G at all. Out of sight, out of mind, right?
From where I sit, it looks like Verizon simply won this round of the wireless marketing wars. If you take the salacious maps out of that commercial, as AT&T asks, the whole point of the "our 3G coverage is better" message is lost. Which would still be fine -- Verizon has the Droid campaign ready to replace the ad spots slotted for this controversial commercial (say that three times fast!).
If this ad really stole "incalculable market share" from AT&T by highlighting the contrast between the two leading networks, I say it did what it was supposed to do.
Does that commercial confuse you or is AT&T just being a big drama queen? The comments box below is open for discussion.
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