Starlink claims lands One NZ with criminal charges

New Zealand’s Commerce Commission (ComCom) filed criminal charges against network provider One NZ for claims it made while promoting Starlink’s Direct-to-Cell (aka Starlink Cellular). 

Earlier this mont, One NZ announced it would be offering Starlink Cellular in New Zealand. The company plans to initially offer TXT services to customers with Starlink Direct-to-Cell. At a later date, the network provider aims to offer voice and basic data capability through Starlink Cellular as well. 

According to NZ Commerce Commission Deputy Chair Anne Callinan, ComCom has some concerns about One NZ’s campaign promoting Starlink Cellular. The agency is particularly concerned about headlines, stating “100% mobile coverage” or “launching 2024.” ComCom believes some of One NZ’s headlines might be misleading or could distort competition in the telecommunications market. 

“In our view, the claims were likely to mislead consumers because they gave an overall impression that all currently available mobile services — text messaging, voice calling, and data — would be supported and available from 2024 and that consumers would have access to instant communication from all locations in New Zealand when, in fact, that may not be the case.

“One NZ’s initial advertising campaign featured absolute and unqualified claims about mobile coverage that did not make the limitations, which we believe are significant, clear to consumers,” said Callinan. 

New Zealand’s Commerce Commission listed a few limitations to Starlink Direct-to-Cell resulting in the criminal charges against One NZ. The limitations are listed below. 

• The coverage will initially provide only the ability to access text messaging (SMS and MMS only) and under the arrangements between One NZ and SpaceX, it is expected that the initial service will be available from 2024 – potentially as late as 31 December.
• The coverage will be accessible only in locations where a consumer’s mobile phone has line of sight to the sky. This means users may not be able to access the service inside a building, a car, or underneath tree coverage.
• Sending and receiving text messages would initially have a 2 minute delay, on average, rather than the impression conveyed in the campaign of near instantaneous service.

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