On Thursday, Cablevision Systems Corp. sued Verizon Communications, Inc. Blaming it of deceptive
advertising on radio, television and internet, claiming that it has
the best and the fastest Wi-Fi Router service available.
In the past, Verizon Inc. has faced similar issues of
falsely marketing accusations by federal regulators. However, now the company
is sued by its competitor. The company has been sued before by CVC earlier in 2011 for falsely advertising
about speed of internet services, however out of the court
settlement took place that time around to solve the case.
Cablevision claims that it has been offering the same FiOS Quantum
Gateway Wi-Fi Router to the customers. CVC offers it for free to its optimum
network users while Verizon charges $199.99 for the same router.
Cablevision Corp. also
alleged that the deceptive advertising is an attempt to hurt its new launch of
Freewheel Internet phone in the market place. Which is expected to break sales
of Verizon and
other service providers. Cablevision Systems Corp (NYSE:CVC) announced that this new service will
have cheap voice, data plans and text and will be launched in the month of
February. This will not affect the industry leader Verizon, however, it is critical for CVC's declining
business pay-TV.
On Thursday, Verizon spokesperson John Bonomo said
that the new court case is “a boldface trick to endorse Cablevision’s latest
wireless services.”
CVC said that it has invested hugely in its Wi-Fi network business and
has almost 1.1 million Wi-Fi hotspots placed in tri-state area of New York. The company also
provides both indoor and outdoor services, on the other hand, Verizon provides indoor services only, and that
also through third parties. Consequently, Verizon should not making
any courageous claims. Also, besides probing the wireless provider to stop its
deceptive advertising, CVC has also asked for the damages.
In response to CVC statement that Verizon only
offers indoor Wi-Fi services, it said, “We offer the fastest indoor Wi-Fi
service than any other provider”. CVC is mystifying the users by comparing
indoor and public Wi-Fi Routers.
Verizon has also rejected the claim regarding its deceptive advertising
message. Company’s spokesperson told Reuter, “A neutral party has
certified and tested the FiOS Quantum Gateway Router”. But, CVC opposes
that the carrier company has manipulated the test.
Cablevision Corporation's
(NYSE:CVC) share is up by 3.59% at
$19.60 in real time. The average 30-day trading volume is 2.94 million shares.
Company has a 52-week low of $15.83 and 52-week high of $21.97.
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