Cellphone giant Telus sues Mobilicity
Telus accuses Mobilicity of spreading misinformation about 'no-contract' deals
Telus will ask the B.C. Supreme Court to stop its competitor Mobilicity from using ads that Telus considers misleading.
Telus is seeking an injunction against the Toronto-based wireless carrier to stop it from advertising, broadcasting and distributing the ads that began in late November.
The Vancouver telecom says Mobilicity is making false claims in general about other carriers, for example that they place limits on unlimited calling plans by restricting them to evenings and weekends.
Telus says it has no such restrictions.
Mobilicity also says Telus is using intimidation and is targeting it as a small player in the wireless market.
Mobilicity chief operating officer Stewart Lyons says his company has been repeating the same message for more than two years.
Mobilicity and Telus will be in court in Vancouver this Friday. Lyons also said Telus is suing Mobilicity over the ads, but didn't provide a dollar amount.
"It kind of feels like big guy to little guy intimidation," Lyons said from Toronto.
'Shut down the little guy'
Lyons said Mobilicity, which offers no-contract cell phone service, is trying to educate the public about alternatives to three-year cell phone contracts.
"In the middle of the Christmas season, here comes Telus trying to shut down the little guy."
But Telus noted in the documents that December is busiest season for wireless carriers.
"We could not let that go unchallenged in such a hotly competitive market where we could potentially lose business over such misinformation," said spokesman Shawn Hall.
Telus argues in court documents that Mobilicity is misrepresenting itself by saying it offers consumers no-contract service because there are "terms" attached to its services.
Lyons said Mobilicity customers pay for their cell phones up front, often on sites such as Craigslist, and pay "low monthly rates."
In addition, Telus argues that Mobilicity does not provided unlimited data because it uses "traffic throttling" to intentionally reduce data speeds when customers exceed certain data usage levels.