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

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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):

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