Updated: AT&T Asks Courts To Force Verizon 3G Ads Off The Air For Twisting The Facts

AT&T's wireless data growth over a 12 quarter period

AT&T (NYSE: T) asked the federal court in Atlanta late last night to force Verizon (NYSE: VZ) to immediately pull its ads, which they are saying could cause “irreparable harm.”

Here’s the argument: AT&T is saying that the side-by-side coverage maps that are in the ad are misleading — not because they are untrue — but because the “white space” could be interpreted as having no coverage in those areas (when in reality it means no 3G coverage). AT&T’s Mark Siegel tells USA Today: “If customers think they can’t make calls in the vast majority of the country…that could do us irreparable harm.” UPDATE: This afternoon, AT&T appealed directly to consumers, saying “recent ads from Verizon are so blatantly false and misleading, that we want to set the record straight about AT&T’s wireless data coverage.”

AT&T claims its 3G network covered 233 million people, or 75 percent of the U.S. population, and its slower EDGE data service covers 303 million people, or 96 percent of the population. When strictly talking about 3G coverage, it sounds like AT&T does in fact cover fewer people than Verizon Wireless, which says on its web site that its 3G network is available to 284 million people across the country.

So, is AT&T’s network is as bad as some consumers are making it out to be? AT&T claims to have the nation’s “fastest 3G” network, but it’s only available in a small portion of its coverage area. The rest is powered by 2.5G, although AT&T says, its 3G network reaches 75 percent of the U.S. population. Walter Piecyk, a Pali Research analyst, said: “The reality is that (AT&T’s) network is not performing well in many markets. And the perception among consumers is even worse than reality.”

AT&T has started to boost its network coverage in areas where the network is straining under the weight of tons of iPhone users. In September, the company said it will spend between $17 billion and $18 billion this year on infrastructure, of which more than two-thirds will go towards broadband and wireless.

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