The stock of T-Mobile US Inc (NASDAQ:TMUS) closed at $61.52 losing 0.23% in yesterday’s trading session. For a long period of time, this company has remained confident that it beats Verizon Communications Inc (NYSE:VZ). That is in terms of having in place a faster and better network. From the look of things at this point in time, it seems that it won’t be holding on to the same level of confidence anymore.
The National Advertising Division has given its recommendations outlining that there is indeed need for T-Mobile to discontinue any form of advertisements that forward claims of it outshining Verizon.
T-Mobile has made it clear that it will no longer proceed with the claims and has right away discontinued the commercials featuring the claims. The company has been using information from speed-testing sites such as Open Signal and Ookla to back up the claims.
Verizon sometime back began providing unlimited plans. Such plans usually slow down customers after a given threshold is reached. Verizon in its argument said that towards the end of the month most of its customers would experience slower speeds. According to Verizon, NAD, a segment of the Advertising Self-Regulatory Council, had been unfairly favoring T-Mobile. Verizon is strongly opposing T-Mobile putting itself in the spotlight as the company offering the fastest speeds.
T-Mobile has also made several claims and the self-regulatory body has lately been reviewing that. One of the claims the company forwarded was that it covered 99 percent of the geographic area.
After some time, NAD has come forward to state that T-mobile is in no capacity to support its claims and that was in consideration of the fact that it covered the same number of people as Verizon.
NAD has given its recommendation outlining that T-Mobile needs to modify its advertising in such a way that it will come out clearer. An analyst opined, “The changes to advertising claims are likely only temporary.”
T-Mobile has in the mean time promised to comply with the recommendation by NAD.