One NZ switches from ‘100% mobile coverage’ to new tagline - but says it still disagrees with watchdog

UPDATE: One NZ says it’s phasing out its “100% mobile coverage” campaign for a new “Coverage like never before, launching 2024″ tagline.

“And we’ll clearly display the disclaimer ‘TXT only launching by end of 2024′ and, where relevant, ‘TXT delivery within minutes’ on-screen when we advertise,” One NZ spokesman Matthew Flood said.

The moves follow a “stop now” letter from the Commerce Commission last week. The regular said the “100% mobile coverage” campaign - launched on the back of a pending partnership with Elon Musk’s Space X - was potentially false or misleading.

But One NZ says it was always planning to wind down its “100%” campaign at this point, and that it still disagrees with the regulator.

“Following review, we’ve responded to the commission’s letter, letting them know that as they themselves noted, our intention was always to wind down our 100 per cent campaign at this point,” Floods said.,

“And while we intend to constructively engage and will make the changes they have requested, we respectfully disagree with their view that our 100 per cent mobile coverage campaign was confusing, likely to mislead or deceive or otherwise in breach of the Fair Trading Act.

“We believe customers inherently understand that while coverage will be 100% when SpaceX has its satellite constellation in place by the end of 2024, there could still be issues that impact a customer’s ability to connect, in the same way that they understand there are similar impacts to cellular services today.”

Rivals Spark and 2degrees, who have both partnered with Starlink rival Lynk for 100 per cent mobile coverage, have both been more reserved in their statements about mobile-to-satellite coverage and when it could arrive.

2degrees (see below) said while it would offer 100 per cent geographic coverage, that would initially be only in three to-five minute bursts a half-dozen times a day. The frequency of coverage would increase as Lynk launched more satellites.

One NZ pointed out that Lynk only has three satellites in orbit currently for “cell tower in the sky” coverage (it eventually plans 5110).

However, One NZ partner Starlink currently has none of the “second-generation” satellites in orbit that are required for its satellite-to-mobile service. The larger second-gen satellites need to be carried to space in parent company SpaceX’s supersized new “Starship” rocket. But Starship’s first launch ended in failure in April, and Musk’s company says it will be “months” before another attempt is made.

Consulting telecommunications engineer Jonathan Brewer told the Herald that, in his view, it would take some time to get Starlink’s satellite-to-mobile network fully up and running. “They’ll be lucky if they have calling working by 2026.”

EARLIER (July 6): A regulator has demanded One NZ stops using the term “100% mobile coverage” and fears the company’s ads are misleading people.

One NZ, formerly known as Vodafone, said it was reviewing the letter - and stood by at least part of its claim.

Commerce Commission chairman John Small said an early investigation into representations in One NZ’s campaign raised concerns of conduct breaching the Fair Trading Act.

And he was worried consumers were being harmed, and the One NZ campaign could distort competition in the sector.

The “Stop Now Letter” said One NZ’s claim of “100 per cent mobile coverage. Launching 2024″ was potentially false or misleading.

The claim related to One NZ’s “celltower in the sky” partnership with Elon Musk’s Starlink, which One NZ said would provide 100 per cent coverage of New Zealand and its territorial waters for text messaging by the end of next year, with voice and data to follow at an unspecified date.

“These concerns arise from the absolute and unqualified nature of the claim and that the majority of the advertising does not make it clear that limitations apply to the mobile coverage,” Small said.

The commission said coverage would in fact just provide the ability to access text messages from late 2024, and only in locations where a consumer’s mobile phone had line of sight to the sky.

“The promotional material does not explain what this means,” the commission added.

It said the “100 per cent” claim would probably be interpreted as the ability to access texts, voice calling and data in all locations in New Zealand, at all times, from 2024.

“The requirement for line of sight to the sky may significantly reduce the usefulness of the service in a way consumers would not expect, which is not apparent from the claims,” Small added.

The commission asked One NZ to cease and desist making the representations without providing prominent qualifying information that explains the limitations of its coverage.

“Only the courts can decide if there has been a breach of the Fair Trading Act.”

One NZ head of corporate affairs Conor Roberts said the company was reviewing the commission’s letter.

“The Starlink space satellites that enable the service will cover 100 per cent of New Zealand, so we think it’s valid to talk about 100 per cent mobile coverage.

“What we are launching is a whole new technology provided by SpaceX that is very different to what we’ve experienced up to this point.

“We’re focused on letting New Zealanders know that the mobile coverage this technology will provide will be available across New Zealand’s geography, including its territorial waters.”

Roberts said One NZ had made it clear the service would launch with text messaging in late 2024, with voice calling and data following in 2025.

“We’ve also explained that you’ll be able to connect to the coverage where you have line of sight to the sky.

“That clearly means it’s unlikely to work inside caves or dense buildings, much like your current mobile use where there are some connectivity constraints even though you might be in range of a cell site.”

He said when next-generation satellite arrays are launched, One NZ will be able to fully test their connectivity capabilities.

Engineer backs ComCom

“It’s good to see the Commerce Commission being proactive,” said Jonathan Brewer, a consulting engineer who offers regulatory and infrastructure advice to industry and government clients.

“Unlike cellular satellite solutions from AST-Spacemobile and Lynk, the SpaceX solution One is promoting hasn’t even been tested yet.”

In Brewer’s view, the coverage claim was misleading. He compared it to the Vodafone NZ FibreX campaign run from 2016-2018, which led to the telco being hit with a $2.24 million fine after the Commerce Commission took legal action.

The same day One NZ announced its partnership with Starlink (April 1), 2degrees said it planned to partner with Starlink rival Lynk to provide a similar satellite-to-mobile service for sending a text anywhere in New Zealand.

On June 1, 2degrees said it had successfully trialled its service with Lynk, with trial texts sent and received from a mobile blackspot 30 minutes north of Whanganui. Spark later also signed on as a Lynk partner, with a test due to take place by the end of this year. Neither 2degrees nor Spark have put a date on a commercial launch for their respective satellite-to-mobile services. Both have made cautious comments, indicating a full-blooded launch could be years away.

Like Starlink’s pending satellite-to-mobile service, Lynk will be able to relay a text and, later, a voice call or data, from any brand of stock-standard smartphone.

2degrees boss Mark Callander said while Lynk would offer 100 per cent coverage of NZ’s landmass (compared to about 50 per cent landmass coverage for the three cellular networks), it would not be around the clock. Lynk COO Dan Dooley, who was in Auckland for the two companies’ launch announcement, said his firm’s satellites cross New Zealand a half dozen times a day, providing a three- to five-minute window to send and receive a text each time. The times would expand as more satellites were launched.

Lynk has three satellites in orbit, with another six due to launch in the new year, using propulsion systems from Christchurch’s Dawn Aerospace.

The US firm ultimately plans a network of 5110 satellites.

Starlink, a fully owned subsidiary of Elon Musk’s SpaceX, has more than 4000 satellites in orbit - but it needs to launch larger “second-generation” satellites for its planned satellite-to-mobile service. The second-generation satellites are too large for SpaceX’s existing rockets. Musk is relying on his firm’s heavy-lift Starship rocket to get the first batch into orbit by the end of this year - but Starship’s first test launch ended in failure on April 23. SpaceX has yet to attempt another Starship launch.

In Brewer’s view, “They’ll be lucky if they have calling working by 2026.”

Spark: ‘Intermittent in early days’

“We think satellite has an important role to play in connecting Aotearoa, but at the same time this technology is still evolving, and so it is important that customers understand the limitations of the service and that there is still some way to go before it is comparable to traditional mobile coverage,” Spark corporate relations director Leela Gantman said.

“This is why we’re launching our satellite service with a trial to start with – recognising that in the early days it will only offer intermittent text messaging, and that the specific dates for more continuous coverage and voice calling are not yet confirmed.

“We need to ensure it is integrated into our network successfully for our customers to get a great experience, and also that the necessary regulatory approvals are in place. In short, there’s a lot of water to go under the bridge yet.”