The nation's third big cellphone network, 2degrees, has been found to have made an untrue claim on its website - that it provides a seamless service across New Zealand.
The network launched last year with an advertising campaign fronted by comedian Rhys Darby.
But the Advertising Standards Authority (ASA) todayupheld a complaint from Ohariu Valley small farmer Marty Best about the claim for its coverage.
The 2degrees promotion said that in areas where it had not yet built its network, "we have partnered with Vodafone to provide a seamless service across New Zealand" .
Mr Best told NZPA he had been a Vodafone customer for a long time and the 2degrees promotion led him to believe he would be able to access the new cellphone service in the valley on the outskirts of the capital.
"I bought a sim card but the phone didn't work out here," he said. The 2degrees claim was a lie.
The network told the authority it had not yet build a cellsite to cover Ohariu Valley because it was a low population area with minimal demand. It was building another seven sites around Wellington, but not for the valley.
The "seamless service" referred to on its website was for areas outside cities, said 2degrees.
While it described Ohariu Valley as a "rural area" outside the Wellington suburb of Johnsonville, the valley was serviced by a city orientated transmitter on Mt Kaukau.
2degrees said there were a few city areas that did not have coverage on its network, and city customers - such as those in range of Mt Kaukau - could not roam on Vodafone.
It had asked Vodafone if it would allow 2degrees customers to "roam" on the signals from their Mt Kaukau cell tower, and was waiting an a response.
The ASA said the claim of a "seamless service" was likely to deceive or mislead consumers.
It did not uphold a second part of the complaint that 2degrees did not cover "97 per cent of where New Zealanders live and work".
