Telstra withdraws appeal against CDMA rule

Telstra has withdrawn its appeal against a 2007 Federal Court ruling that it mislead customers about Next G coverage.

The charges pertain to statements from the telco that its Next G network had equal or better coverage than its CDMA network, which contradicted subsequent Australian Competition and Consumer Commission (ACCC) reports.

Communications Minister Stephen Conroy rejected Telstra's bid to close the CDMA network in January this year, after reports identified holes in Next G coverage and claimed customers were sold inappropriate handsets.

ACCC chair Graeme Samuel welcomed Telstra's decision to withdraw its appeal.

"Telstra's decision to discontinue its appeal proceedings brings a welcome end to this matter, and vindicates the ACCC's strong intervention to protect consumers from misleading marketing in the telecommunications industry," Samuel said.

The ACCC proceedings alleged Telstra engaged in illegal conduct by stating Next G had "coverage everywhere you need it" and that Next G customers would get the same or better coverage as they did on the CDMA network.

Telstra must pay for court costs and the ACCC proceedings.