Cell Phone Guru

Verizon Communications, Inc. has filed a lawsuit against competitor Time Warner Cable for false advertising, claiming a TWC ad made false claims about Verizon’s FiOS offerings.

The ad in question features a Verizon salesman asking a customer if he heard of fiber optic technology. The customer responds saying Time Warner Cable has been using fiber technology for a decade, then proceeds to ask, “Don’t I need a satellite dish just to get TV from you?” According to Verizon, the ad misleads the public about the quality of services offered by the company as it implies that TWC’s network is better than Verizon’s.

The telecom company also says the TWC ad implies that FiOS customers need a satellite dish just to set up TV services, that TWC used fiber optic technology first and that Verizon can not offer Web, video and phone capabilities as one service bundle.

Contrary to what the ad suggests, Verizon says that it has been using fiber optic technology in certain networks since the 1970s and that the fiber-to-the-home network used by the telco is better than cable. The telco is also claiming that the TWC ad deceptively mixes up the FiOS service with its DirecTV/phone/DSL bundle, which are two different services. Verizon says the latter is offered only in locations where FiOS isn’t currently available.

A consultant says that the FiOS network is certainly faster than the ones currently being utilized by other cable companies. And although another rival company, ComCast, has announced plans to offer upgraded services, the consultant says Verizon’s connection is still speedier.

When Verizon found out about the ads, it requested TWC to stop airing them. The cable company refused, stating that it intended to continue broadcasting the said ad. A spokesman for TWC states that the lawsuit is “without merit” and that the company intends to defend itself against the case.

Verizon is asking the court to prohibit the airing of the ads and to order Time Warner Cable to rescind the false statements via amended ads. The company is also seeking undisclosed damages as part of the lawsuit, stating the allegations made in the ad negatively impacts on Verizon’s profits as the ad discourages customers from switching to the FiOS service.

But even as the telco is filing suit over the TWC ad, it said earlier this week that it will stop airing a Verizon ad that inaccurately quotes from A CNET news article, making it appear that CNET was reviewing the FiOS service.