Comcast sues Qwest over ad campaign

Comcast Corp., the world's largest cable television provider, sued Qwest Communications International Inc., accusing it of a "false, misleading and deceptive" ad campaign for its Internet service.

Qwest's ads, which claim its Internet service is faster than Comcast's rival product, rely upon "a fundamentally flawed and illegitimate survey" showing 72 percent of Internet users think Qwest's service is as fast or faster, Comcast said in a complaint filed Monday in federal court in Denver.

"Both claims are literally false, impliedly false and intentionally deceptive," Philadelphia-based Comcast said in its complaint, also alleging unfair competition. The ads began appearing on national television networks and in major newspapers in mid-May, according to court papers.

Comcast is using Internet-service subscriptions to help fuel business growth. In April, the company reported an 80 percent jump in first-quarter profit, driven by increased demand for packages of television, phone and Internet service.

The company asked the court to block Qwest from continuing the ad campaign, to order the company to run "corrective advertising" and to pay cash compensation. The two companies compete for Internet customers, with Qwest serving them through a digital subscriber line, or DSL, and Comcast providing Internet access through its cable-modem television system.

Denver-based Qwest is a telephone company that serves customers in Western U.S. states. It's the fourth largest U.S. phone company after AT&T Inc., Verizon Communications Inc. and Sprint-Nextel Corp.

"The results of this blind, side-by-side survey have clearly touched a nerve," Qwest spokesman Robert Toevs said in an e-mailed statement. "Any legal questions will be answered in court."

Shares of Comcast rose 7 cents to $27.11 in Nasdaq Stock Market composite trading as of 4 p.m. Qwest shares fell 8 cents to $10.20 in New York Stock Exchange composite trading.

"The survey Qwest conducted is false and misleading and their claims are unsubstantiated," said Comcast spokeswoman Jenni Moyer in an e-mailed statement. "We've asked Qwest to provide substantiation over the past few weeks, but they've refused to provide the information."