Cox to Modify ‘Powered by Fiber’ Promotions After NAD Slapdown
AT&T wins this round
Cox Communications said this week that it would modify its “powered by fiber” marketing campaign to make plain that the company’s internet division does not actually offer fiber to the home. The company’s about face comes after the National Advertising Division agreed with a challenge brought by AT&T
Cox offers two different fixed broadband internet services: Cox Fiber, a residential internet service that is 100% fiber, including fiber to the home. The other, Cox Internet, is almost entirely fiber to the node close to residences, but the “last mile” uses coaxial cable instead of fiber. These services do not overlap. The customer’s location determines which service they can purchase.
NAD determined that “powered by fiber” reasonably conveys the messages that Cox Internet is comparable to fiber internet, offers customers fiber optic internet connections to their homes, and offers an advanced fiber optic network. But since a coaxial and a fiber network are equivalent in performance to all consumer-relevant metrics, NAD recommended that Cox modify its “powered by fiber” claims.
Cox responded that it would comply with NAD’s recommendation, adding that it “appreciates NAD’s recognition that Cox may continue to advertise that Cox Internet is Powered by Fiber,” and while it “disagrees with certain aspects of NAD’s decision, it is a strong supporter of advertising self-regulation.”
The news comes exactly a year after AT&T lost another challenge over Cox’s marketing practices, when the NAD agreed that Cox’s “gig-speeds everywhere” did not violate its guidelines.
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Tom has covered the broadcast technology market for the past 25 years, including three years handling member communications for the National Association of Broadcasters followed by a year as editor of Video Technology News and DTV Business executive newsletters for Phillips Publishing. In 1999 he launched digitalbroadcasting.com for internet B2B portal Verticalnet. He is also a charter member of the CTA's Academy of Digital TV Pioneers. Since 2001, he has been editor-in-chief of TV Tech (www.tvtech.com), the leading source of news and information on broadcast and related media technology and is a frequent contributor and moderator to the brand’s Tech Leadership events.