Australian MVNO Confirms Shut-Down Order
Around 120,000 Australians are looking for a new mobile network after being warned that their provider is being closed down within a month.
The MVNO, Kogan Mobile resold capacity from another company, ispOne, which has been placed into administration following a dispute over unpaid bills with the mobile network operator, Telstra.
ispOne resold services to Kogan Mobile and the retailer, Aldi. However, while Aldi was able to negotiate a deal direct with Telstra to protect its 130,000 customers, the same has not applied to Kogan Mobile.
Kogan Mobile customers have been given 30 days to find an alternative provider, otherwise their lines will be cut off.
The move will be a blow to the customers who chose Kogan Mobile for its exceptionally low 3G mobile data rates -- rates which were so low as to raise questions about how the company could afford to offer them.
It has been speculated that the collapse of ispOne was in part due to the wholesale agreement that it signed with Kogan Mobile where it massively underestimated the mobile data consumption by the MVNOs customer base.
Burdened by higher bills from Telstra than it was recieving in revenues from Kogan Mobile, the company was taken to court by Telstra for unpaid invoices. The company finally agreed to file for bankruptcy.
Telstra meanwhile, although it has offered service to Aldi, has refused to support the Kogan Mobile service beyond the 30 days it offered.
There are now around 120,000 heavy mobile data users looking for a new mobile network to support them.