AUSTRALIA’S competition watchdog is taking on the world’s biggest company - Apple – for allegedly misleading consumers over its new iPad.
Apple’s latest tablet device went on sale in Australia on March 16 labelled as ”iPad Wi-Fi + 4G”. But the Australian Competition and Consumer Commission will today allege this product name misleads consumers because the iPad does not work as a 4G device in Australia.
Wi-Fi is a wireless broadband signal sent from modems on a fixed network, while 4G is the phrase used to describe the new generation of mobile broadband. However, Apple only sells devices tuned to the 4G frequencies of US-based networks owned by AT&T and Verizon, and three Canadian networks. The new iPad does work on 3G networks in Australia.
Telstra launched Australia’s first 4G network in capital cities last year. An Apple spokeswoman confirmed in March that the new iPad did ”not connect to Telstra 4G”.
Currently it only works as a 4G device if coupled with a Telstra mobile Wi-Fi device which costs $60 per month.
Apple is the world’s largest company with a market capitalisation of $US606 billion. Its cash reserves were nearly $US100 billion in late 2011, prompting it to pay dividends for the first time.
Telstra launched Australia’s first 4G network late last year while Optus has started deploying a network around Newcastle with plans for a national rollout. Vodafone Hutchison Australia has been testing 4G capabilities but has not launched a commercial service yet.
A Telstra spokeswoman said: ”At point of sale and in store, we make it very clear [the iPad] is not compatible with Australia’s only 4G network.”
The ACCC warned before the iPad’s release that ”traders should be very careful about promoting the benefits of a good or service without adequately disclosing limitations”
