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Let the war begin: AT&T sues Verizon Wireless over advertising claims

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AT&T, Inc. (NYSE: T) has seen incredible gain on the back of the Apple iPhone in the last two years. So much, in fact, that its national wireless network is most likely strained -- causing many an iPhone customer to constantly have problems with their service.

With Verizon Wireless attempting the boldest move yet to quench AT&T's iPhone power with the impending release of the "Droid" phone, it's also advertising that its coverage is miles ahead of A&T's. This is true -- Verizon's 3G wireless footprint is leagues beyond comparable AT&T coverage for 3G services. But, AT&T is not taking this sitting down. Yes, a lawsuit has been filed.

AT&T claims that the ads, which starkly contrast Verizon's huge coverage against AT&T's puny coverage, are misleading AT&T customers and potential customers. While Verizon clearly states that its the "3G" footprint it is referencing, AT&T is claiming in the lawsuit that there is a loss of "incalculable market share" based on the misleading ads. So, if it's "incalculable," how is there any damage at all being done? Apparently, nothing can be calculated. AT&T's attorneys need a thesaurus, right?

The ads are 100% correct, but AT&T seems to think that customers are too ignorant to know the difference between its 3G coverage and its older and slower 2G coverage, where the iPhone and all AT&T phones will still work (at very slow data speeds, no less). So, as usual, AT&T's entire premise here is that its customers are complete idiots when it comes to understanding the differences in coverage between its older network and the newer 3G network it operates alongside the older network.

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Last updated: November 27, 2009: 07:32 AM

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