Telstra has withdrawn its appeal against the Federal Court's December 2007 ruling that it engaged in false, misleading or deceptive conduct in relation to the coverage available on its Next G mobile network.

"Telstra's decision to discontinue its appeal proceedings brings a welcome end to this matter, and vindicates the ACCC's strong intervention to protect consumers from misleading marketing in the telecommunications industry," ACCC chairman, Mr Graeme Samuel, said.

The ACCC brought proceedings against Telstra in September 2007, alleging that Telstra had engaged in misleading or deceptive conduct to the detriment of consumers.

The illegal conduct included representations that the Next G mobile network had "coverage everywhere you need it" and that Next G customers would get the same or better coverage as they did on the CDMA network.

Telstra must now pay the costs of the ACCC occasioned by the appeal together with the costs of the ACCC's proceedings.