ISPOne enters voluntary administration, Kogan Mobile hit hard

ISPOne administration spells the end of Kogan Mobile.

Update 2: Kogan released a statement this afternoon on its website to Kogan Mobile customers, stating that it is devastated.

"Kogan Mobile has tried to do everything it can to protect its customers," it said.

"However, contrary to our numerous and concerted efforts to persuade Telstra to maintain and support Kogan Mobile's arrangements with Telstra's sole distributor, ISPOne, Telstra has advised that it will terminate the 3G Prepaid Mobile services to Kogan Mobile."

It advised that customers had 180 days from today to port their service to another provider in order to keep their number, and that it is currently seeking deals with other providers to negotiate special offers for Kogan Mobile customers.

It has listed details on the matter for customers on its website, explained how and when they should port their number to another service provider, and also how they can refund any unused credit.

"Kogan Mobile has been muscled out of the mobile industry against our will by a force much bigger and much stronger than us," it also added, expressing concern about the possibility of increasing mobile prices with the number of MVNOs falling out of the prepaid mobile market.

Update: Administrator Ferrier Hodgson has sent out a statement on behalf of ISPOne, stating that they are working with Telstra on a transition plan "to ensure minimal disruption to [customer] phone services".

It added that with an agreement reached between Medion and Telstra over the weekend, Aldi Mobile customers would not be effected.

ISPOne's 50,000 fixed-line internet users will also not be effected while the administrators look at the viability of the company, nor will its fixed-line business, which was in the process of being sold prior to the appointment of administrators.

"Our intention is to minimise the inconvenience to ispONE customers wherever we can," said Ferrier Hodgson partner Stewart McCallum.

Original article...

ISPOne has today entered voluntary administration, just a day before the scheduled trial between it and Telstra over allegations of ISPOne not paying $12 million worth of invoices and Telstra breaching contract by overcharging for wholesale mobile services.

Telstra Wholesale had been looking to terminate ISPOne's mobile pre-paid contract. According to a statement from the telco today, it had been advised that ISPOne had entered administration with Ferrier Hodgson appointed as a voluntary administrator.

The Federal Court today dismissed the case between the two, ending an injunction that ISPOne had won late last week that stopped Telstra from cancelling services to ISPOne customers, including MVNOs Kogan Mobile and Aldi Mobile.

Telstra said that it has now "cancelled ISPOne's contracts for the supply of Telstra Wholesale pre-paid mobile products".

ISPOne had been taken to court by Kogan Mobile earlier this year after it had dumped around 600 Kogan Mobile customers for allegedly using too much data.

No more Kogan

Kogan wrote to customers last week that it had been monitoring the developments between the two companies closely.

"If Telstra terminates its contract with ISPOne, this is very likely to impact Kogan Mobile's own customers' services (through no fault of Kogan Mobile)," Kogan had said.

Telstra today confirmed that as Kogan Mobile is not a customer of the telco, it would not be accepting any new Kogan customers or credit recharges, although it would be providing interim voice services.

"People who want to change providers should approach their service provider of choice who can request the number port, but we would ask for patience as there are limits on how many ports the industry can undertake in addition to normal sales and activation activity," Telstra Wholesale Group Managing Director, Stuart Lee

"We do not have their account information and we cannot provide them any customer service support," he added.

Telstra has put up more details for Kogan Mobile customers on its website detailing a transition plan for the 120,000 customers that will be effected, though the telco added that customers should direct questions about their service to their retail service provider.

Medion saves Aldi Mobile

While Kogan Mobile and Aldi Mobile representatives were both invited to court ordered mediation between ISPOne and Telstra last week, it looks like Medion, which is Aldi Mobile's supplier, was able to enter into an interim agreement with Telstra.

"Because Medion has entered into a direct supply agreement with Telstra Wholesale, Telstra is able to continue to supply Medion to support their ALDImobile customers," the telco said on its website.

As such, there have been no changes to Aldi Mobile, and Medion may look to extend or renegotiate a new agreement with Telstra in the future.

  • While the dust settles from this debacle, why not check out who has Australia's best 4G network?