AT&T says the ads, which show that AT&T has poor 3G coverage compared to Verizon are causing it to lose "incalculable market share."
According to the lawsuit which AT&T filed in Atlanta federal court, a recently broadcast ad campaign shows maps with white spaces that mislead consumers into thinking AT&T has no network coverage outside of areas where it offers high-speed mobile services, known as 3G.
But AT&T argued that its customers can "fully use their wireless devices outside of a '3G' coverage area and undisputedly have coverage in areas depicted by white or blank spaces on the maps used in Verizon's advertisements."
Verizon says the lawsuit has no merit, and Verizon Wireless spokeswoman Nancy Stark said the ads "clearly state" that voice and data services are available outside 3G areas. She said the ads were intended to tell consumers about coverage for smartphones, which are used for data services.
If you want to see the ad that sparked the lawsuit, click here.
*Verizon is currently in the process of acquiring AOL, Engadget's parent company. However, Engadget maintains full editorial control, and Verizon will have to pry it from our cold, dead hands.