Wholesale mobile provider ispONE has been placed in administration, leaving 120,000 Kogan mobile customers with just seven days to find another provider.
Melbourne-based ispONE, which provides telecommunications services to wholesale and retail phone and internet providers throughout Australia, voluntarily appointed Ferrier Hodgson as administrators.
The company provides prepaid mobile services for 250,000 mobile users through Aldi’s Medion brand and the Kogan Mobile brand using Telstra’s network.
Kogan mobile customers received a text message last night to tell them their service was about to end and Kogan had been unable to find an alternative.
The customers were told to expect a separate communication from Telstra.
You might like
Kogan and Telstra were not able to negotiate a direct supply agreement.
In its message to account holders, Kogan said it had made “numerous and concerted” efforts to convince Telstra to continue servicing its customers.
“We’re devastated,” the company wrote.
“When over 100,000 people took their services to Kogan Mobile, in such a short space of time, it attracted a lot of attention.
Stay informed, daily
“Frustratingly, it appears like the telco heavyweights may be determined to take their former customers back.”
In a separate statement Telstra said existing Kogan customers would be moved to a temporary seven-day plan at some stage over the next month, after which their service will be cut off.
Customers will be able to transfer their phone number to another provider at any time over the next 180 days.
Optus jumped into the vacuum, offering special deals to people who bring their number over.
The administrators of ispOne, Ferrier Hodgson, said the 50,000 internet users whose services are provided via ispONE will not be affected.
A meeting of creditors will be held on August 29.
Kogan’s 120,000 customers now have to start looking for a suitable deal.
Want to see more stories from InDaily SA in your Google search results?
- Click here to set InDaily SA as a preferred source.
- Tick the box next to "InDaily SA". That's it.
