Mobilicity Wins Against TELUS in BC Supreme Court Over Controversial TV Ads [Update]

Earlier this month, we reported on TELUS suing wireless entrant Mobilicity over claims the latter’s TV ads were “false and misleading”. Now, Mobilicity has issued a press release stating a BC Supreme Court Judge has made a decision in their favour over TELUS, dismissing an interlocutory injunction application by the latter to take the TV add off the air.

“Today is a big day for wireless consumers and continued competition in Canada,” said Mobilicity President and Chief Operating Officer Stewart Lyons. “We are happy with the Court’s ruling and that Canadian wireless consumers are still free to engage in a dialogue with each other about the many challenges facing Canadian wireless consumers – that’s what our TV commercial is all about.”

Lyons goes on to say the TELUS claim was “a ridiculous bullying tactic and an unnecessary distraction during our busy holiday season” and hopes TELUS will “focus on its business and improving customer service as opposed to trying to intimidate a smaller competitor.”

B.C. Justice J. Christopher Grauer’s decision noted:

“Neither side, in my view, is likely to suffer irreparable harm in the event that the injunction is either granted or refused,”

TELUS to Go After Mobilicity’s Unlimited Data Marketing Claims

According to the Financial Post, TELUS aims to pursue other claims against Mobilicity in court, specifically the wireless entrant’s claim of unlimited data. TELUS alleges Mobilicity throttles data speeds for the network’s heaviest users, which contradicts the ‘unlimited data’ claim.

“We believe that Mobilicity’s data throttling that restricts their unlimited plans is misleading and must be addressed,” Telus spokesperson Shawn Hall said.

Mobilicity, Wind Mobile and Public Mobile combined barely control 5% of the Canadian wireless market. Because of this, Lyons feels TELUS is trying to intimidate them:

“We’re not a significant factor in [threatening] Telus’ market share. Hopefully one day, but this is entirely about intimidation,” Stewart Lyons, chief operating officer for Mobilicity said. “This time it cost them because now they’ll have to pay my court costs.”

As more and more Canadians adopt smartphones, the stakes are high for all wireless companies to sign up customers ditching their basic cellphones for feature rich devices.

Update: TELUS spokesperson Shawn Hall informed us of the following (the Mobilicity ruling was an interim order only):

http://twitter.com/shawnhall/status/281493741452263425

Founder and Editor-in-Chief of iPhoneinCanada.ca. Follow me on Twitter, and @iPhoneinCanada, and on Google+.

  • Yeah, I noticed that those “unlimited” data plans use throttling to control heavy users. Personally, I think it’s a great idea. I’d much rather have my data throttled down if I go over than have to pay more money. Besides, the plans don’t start being throttled until well past most people’s average data usage.

    Oh yeah, and guess how I found out about the throttling? I read the fine print (as the court suggests), which is something I learned to do after dealing with companies like TELUS.

  • BrodieTheDog

    Lol@ reading the fine print after dealing with Telus.

  • SMARTY

    Nice, I congratulate Mobilicity. I really hope they get the iPhone.

  • soldat101

    so mobilicity slows down data speed if you use more than 6gb per month? wow, telus can’t even offer 6gb data without charging you an arm and leg unless you’ve been with them for years.

  • They’re never getting the iPhone, at least any iPhone up to now because of Mobilicity’s reliance on AWS frequencies. iPhone doesn’t support those.

  • molin

    To be honest, I have Mobilicity, and I love it! I have NEVER had an issue with my unlimited data, I’ve never had an issue with my unlimited calling to the States and all of Canada, I’ve never had an issue with my unlimited texting… and I know that my bill will be $23.00 per month every month, no matter how many times I call my family in the States, or all over Canada, no matter how much I check my facebook on my phone, or use my data. Companies like Telus, who I have used prior to having a better option, like to suck the money out of your pocket like a thief sucking the gas from your tank. I’ve read the fine print, and have been with Mobilicity for well over a year, and haven’t had an issue. Telus, I didn’t read the fine print and was screwed. I learned like a previous poster, to read the fine print after dealing with Telus, and I can honestly say… Mobilicity is exactly what they say they are!!