T-Mobile and Verizon are going to fight it outside of court like mature adults

T-Mobile and Verizon went to court in February to accuse each other of misleading customers.

T-Mobile and Verizon are going to fight it outside of court like mature adults
Back to self-regulation. | Image by PhoneArena
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T-Mobile and Verizon spent the early part of the year sparring over who made the most egregious claims to customers. While the spat was initiated by Verizon, T-Mobile was quick to countersue. Ultimately, both carriers realized that it wasn’t worth going back and forth and decided to bury the hatchet.

No, you are fooling customers


Verizon accused T-Mobile of exaggerating how much switchers would save, arguing that T-Mobile's marketing system overvalued its own perks while downplaying Verizon's benefits. 

T-Mobile fired back, claiming Verizon engaged in many of the same practices it accused T-Mobile of. Verizon scored an early win in March when a judge issued a preliminary injunction blocking T-Mobile's "Save Over $1,000" ad campaign.

Reuters says that the companies have resolved their lawsuits and established a framework for handling similar disputes in the future.

Why have T-Mobile and Verizon returned to out-of-court dispute resolution?
9 Votes

Did the carriers regret going legal?



Carriers typically rely on the independent watchdog National Advertising Review Board (NARB) to sort out advertising issues. It's a self-regulating, non-governmental body, and compliance is voluntary. If an advertiser fails to follow recommendations, it's sometimes referred to the Federal Trade Commission (FTC).

That's what the NARB was planning to do when T-Mobile didn't comply with its recommendation to drop certain claims. Verizon bypassed the watchdog and sued T-Mobile in February.

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T-Mobile shot back days later with a countersuit highlighting deceptive claims made by Verizon and its attempts to silence customers who wanted to call it out for the bait-and-switch behavior.

Why stop now?


It's not clear why the two backed down, but the reasoning isn't hard to guess. Lawsuits are expensive and unpredictable. Besides, by slinging mud at each other, T-Mobile and Verizon were inadvertently drawing more attention to practices that turn consumers off.

Calling a truce


With SpaceX closing in on them and MVNOs out for blood, T-Mobile and Verizon have bigger fish to fry. In the meantime, they have gone back to NARB to settle their remaining grievances. 

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