Market Overview

Are 4G iPad Users Paying for 3G Speeds?

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They say you get what you pay for. But if you're an iPad user in Australia, that may not be the case.

Bloomberg Businessweek reports that Apple (NASDAQ: AAPL) is being accused of “misleading” Australian consumers.

Businessweek quoted the following statement from the Australian Competition & Consumer Commission: “The ACCC alleges that Apple's recent promotion of the new ‘iPad with WiFi + 4G' is misleading. It represents to Australian consumers that the product ‘iPad with WiFi + 4G' can, with a SIM card, connect to a 4G mobile data network in Australia, when this is not the case.”

The article goes on to explain that while the iPad uses 700 megahertz and 2,100 megahertz frequencies for 4G connectivity, Telstra Corp. is the only company that operates a 4G network in Australia. And that firm uses a frequency of 1,800 megahertz.

This is not the first time that a 4G controversy has surrounded Apple. AT&T (NYSE: T) caused a stir when it added a 4G icon to the iPhone 4S, a marketing decision that gave many consumers the impression that their prized smartphone was capable of receiving 4G speeds. But the service hadn't actually changed. The only difference was that the nation's largest telecommunications company was now able to indicate it was providing consumers with 4G.

It is not yet known how Apple will respond to the latest 4G controversy, which seems to be more significant than the AT&T fiasco.

Follow me @LouisBedigian

Posted-In: Apple AT&T Australian Competition & Consumer Commission Bloomberg Bloomberg BusinessweekNews Rumors Tech Best of Benzinga

 

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