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Kogan and Aldi Mobile phone services on a sinking ship?

Discussion in 'Hobby Electronics' started by Don McKenzie, Aug 13, 2013.

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  1. Don McKenzie

    Don McKenzie Guest

    Kogan and Aldi Mobile phone services on a sinking ship?

    ISPone in a court battle with Telstra may kill Kogan and Aldi mobile phone services.

    Read the story at:
    http://whrl.pl/RdF7jc

    Don...


    --
    Don McKenzie

    $30 for an Olinuxino Linux PC:
    http://www.dontronics-shop.com/olinuxino.html

    The World's Cheapest Computer:
    DuinoMite the PIC32 $25 Basic Computer-MicroController
    http://www.dontronics-shop.com/the-maximite-computer.html
    Add VGA Monitor/TV, and PS2 Keyboard, or use USB Terminal
    Arduino Shield, Programmed in Basic, or C.
     
  2. Petzl

    Petzl Guest

    Thanks another article
    http://www.zdnet.com/au/ispone-sues-telstra-to-stop-mobile-service-termination-7000019248/
    --
    Petzl
    http://tinyurl.com/HAT-MURDOCH-PROMISED-ABBOTT
    http://tinyurl.com/AbbottsPorkPies
    Q: What has Tony Abbott promised Murdoch?
    A: A broadband network that will be so slow as to offer no competition to his pay TV interests.
    Rupert Murdoch tries to buy U.S. presidency
    http://tinyurl.com/ab3y6nl
    Federal Police investigating Murdoch http://afr.com/p/business/marketing_media/federal_police_join_news_probe_s0h2FfmrnzYD7dIbq8s04L
    Murdoch hiring hackers to kill off opposition
    In Australia Murdoch doing the same
    http://afr.com/p/business/marketing_media/pay_tv_piracy_hits_news_OV8K5fhBeGawgosSzi52MM
    Paul Keating's assessment of Rupert Murdoch as "a big bad bastard"
    "Murdoch 'not fit' to run News Corp" < http://tinyurl.com/7njegk3 >
    "Rupert Murdoch has let it be known within his organisation that Australia needs change in Canberra and his editors were simply doing his bidding"
    http://www.onlineopinion.com.au/view.asp?article=12041
     
  3. Don McKenzie

    Don McKenzie Guest

    31 minutes ago:

    ispONE has undergone a restructure in bid to protect a segment of its enterprise telco business.

    According to EFTM, the company has formed a new group known as “iboss international pty ltd” and will allocate the
    customers its servicing through its Optus resale agreement in to the new entity.

    http://www.businessspectator.com.au...estructures-protect-enterprise-telco-business


    --
    Don McKenzie

    $30 for an Olinuxino Linux PC:
    http://www.dontronics-shop.com/olinuxino.html

    The World's Cheapest Computer:
    DuinoMite the PIC32 $25 Basic Computer-MicroController
    http://www.dontronics-shop.com/the-maximite-computer.html
    Add VGA Monitor/TV, and PS2 Keyboard, or use USB Terminal
    Arduino Shield, Programmed in Basic, or C.
     
  4. SG1

    SG1 Guest

    Good one Don, must be a member to login and read
     
  5. Have you tried a different browser?

    I'm not a member and wasn't offered any log-in prompts; the story just
    appeared.

    Note that I'm using FireFox with both AdBlock and Ghostery running, so if
    they're using any scripting to "force" such a log-in, either or both of
    those could've thwarted it.
     
  6. Yep, there's no login request.
     
  7. Don McKenzie

    Don McKenzie Guest

  8. keithr

    keithr Guest

    Telco claims wholesaler is "bankrupt".

    ispONE will pay a further $200,000 to ensure continuity of service from
    Telstra for another day while mediation between the two over unpaid
    bills moves into its second day.

    Telstra this week threatened to terminate mobile services to the
    wholesaler amid claims it owes the telco $12 million.

    The Victorian Federal Court on Monday granted a limited injunction until
    4pm yesterday to prevent Telstra from cutting the supply of prepaid
    mobile services to ispONE while the case was heard, which was yesterday
    extended to 2:15pm today.

    ispONE paid the court $300,000 for the initial injunction and $200,000
    for the second.

    In a late sitting that adjourned around 9.30pm last night, Justice Tony
    Pagone reserved his decision on whether to grant ispONE a full
    injunction while he considers the case.

    Mediation between the parties includes representatives from ispONE
    customers Kogan Mobile and Aldi.

    ispONE has this week also been forced to deal with a damages claim by
    Kogan Mobile in the Victorian Supreme Court, after the retailer was
    successful in its bid to stop ispONE suspensing and blocking Kogan
    Mobile customers for "overuse".

    That case that was raised by counsel representing Telstra as they argued
    ispONE would be unable to pay its debts and was, they alleged, “bankrupt”.

    Telstra’s legal team cited ispONE’s confidential balance sheet and
    profit and loss statement as proof the firm had negative equity and was
    insolvent.

    “Whichever way this company turns, it is, with great respect, finished,”
    they alleged.

    Counsel representing ispONE argued Telstra should amend unpaid invoices
    to reflect the service price ispONE believed it should have been
    charged. Then it would be able to clear its debt.

    ispONE will claim Telstra engaged in unconscionable conduct by making
    representations to the wholesaler that it would match call and data
    pricing offered by Optus as part of the deals it was seeking to strike
    with Kogan Mobile and Aldi.

    It also alleges Telstra asserted “commercial pressure akin to duress” in
    demanding ispONE make prepayments of future amounts owing in order to
    ensure its service wasn’t terminated.

    But counsel representing Telstra argued in some cases Telstra’s pricing
    was more favourable than that offered by Optus, at 7.5 cents per minute
    versus 8 cents per minute, and 7.3 cents per SMS compared to 8 cents per
    SMS in the case of one plan included in the contract.

    They also argued the Optus agreement was for six months, with prices
    variable on 48 days notice, while Telstra’s agreement was for a fixed
    term of three years, with pricing also fixed for three years.

    “Even on the Optus rates, the deal that ispONE made with Kogan and Aldi
    was improvident,” counsel representing Telstra alleged, arguing ispONE
    took a risk and miscalculated the usage by end users with Kogan and Aldi.

    Justice Pagone moved to hear arguments immediately after yesterday’s
    hearing was delayed due to ongoing mediation, in the hope of finalising
    the injunction request before moving to a full trial on the issue of
    misleading and deceptive conduct.

    “It is not appropriate for the court to impose on any organisation,
    whether Telstra or any other, the obligation to provide some sort of
    service for which it is not likely to be paid,” he said.

    Counsel representing ispONE said it could offer additional assurance of
    $300,000 if a trial were to proceed today, and if an injunction were
    granted for three weeks, it would look to the $4 million it had owing to
    it by month-end to make good on its undertaking.

    He said ispONE had acted in good faith, facilitating discussions to
    allow its proprietary platform, necessary for continuity of service to
    prepaid mobile customers, to be made available to others.

    A decision is expected by 2.15pm tomorrow. Justice Pagoine said he would
    extend the limited injunction if he was not able to come to a decision
    by that time.
     
  9. Don McKenzie

    Don McKenzie Guest

    court finding 20 minutes ago:
    http://forums.whirlpool.net.au/forum-replies.cfm?t=2135162&p=42#r828

    takes a bit of reading but it looks like Kogan and Aldi have been holding back from paying invoices for some reason.

    Don...


    --
    Don McKenzie

    $30 for an Olinuxino Linux PC:
    http://www.dontronics-shop.com/olinuxino.html

    The World's Cheapest Computer:
    DuinoMite the PIC32 $25 Basic Computer-MicroController
    http://www.dontronics-shop.com/the-maximite-computer.html
    Add VGA Monitor/TV, and PS2 Keyboard, or use USB Terminal
    Arduino Shield, Programmed in Basic, or C.
     
  10. keithr

    keithr Guest

    The Federal Court in Victoria has placed an injunction on Telstra,
    preventing it from disconnecting 280,000 mobile services currently
    operating on the Telstra 3G mobile network through reseller ISPOne until
    a court case between the two companies over money owed to Telstra has
    been resolved.

    (Credit: ISPOne)

    ISPOne, which resells mobile services to smaller telcos such as Kogan
    Mobile and Aldi, filed an urgent application in the Federal Court on
    Monday, claiming that Telstra had sought to terminate services due to a
    failure to pay invoices. ISPOne has said that no money is due, because
    Telstra is calculating the amount owed based on incorrect pricing of
    data for prepaid mobile services.

    ISPOne has claimed that Telstra is in breach of its agreement with
    ISPOne, and that it is entitled to damages because of problems with the
    wholesale service that Telstra offered, over which ISPOne said it saw a
    delay in mobile numbers porting to Telstra.

    The two companies battled it out in court until late Wednesday night,
    with the court ruling that the injunction preventing Telstra from
    cancelling ISPOne's services will be held over until the case can be
    heard on an as-yet-unannounced date.

    In the meantime, ISPOne has been asked to pay the court AU$300,000, but
    it is believed that Telstra is seeking millions of dollars that it
    claims the company owes Telstra.

    Telstra said that it has given ISPOne many chances to pay the money owed
    to it.

    "As the court has heard, we are a creditor of ISPOne. Over a period of
    several months, we have given them every opportunity to develop a
    repayment plan for their debt, but to date we have been unable to reach
    a satisfactory agreement," a Telstra spokesperson told ZDNet in a statement.

    "We will continue to defend the claims raised by ISPOne. We have
    contingency plans in place to limit the impact on end users."

    ISPOne declined to comment.

    The case throws into question the future for the services sold by
    ISPOne's customers Kogan and Aldi. Both telcos have long contracts in
    place with ISPOne, but ZDNet has heard from multiple sources that Kogan
    Mobile is currently shopping around for a new provider to ensure a
    continuity of services for its hundreds of thousands of customers.

    Moving to any mobile network operator that isn't Telstra may prove to be
    difficult, however, with both Optus and Vodafone recently moving to
    scale down the number of resellers on their networks, instead focusing
    on customer retention rather than customer acquisitions.

    The move would come as no surprise to many of Kogan Mobile's customers,
    however. In May, ISPOne was ordered to pay Kogan Mobile damages for
    suspending over 700 Kogan Mobile customers who were flagged by the
    company to be using too much data.

    The court case comes as ISPOne is reportedly restructuring and
    rebranding its business. A spokesperson for ISPOne denied that the
    rebrand is in relation to its dispute with Telstra.

    "The recent communication, sent in commercial confidence, informed
    wholesale partners of an organisational restructure and rebrand
    initiative that is part of an ongoing strategy that has been in
    development for the past 18 months. The rebrand is not related to the
    legal issues currently undergoing mediation."
     
  11. Damian

    Damian Guest

    It's pretty obvious, the reason they are rebranding their business.
     
  12. Guest

    Guest Guest

    On Mon, 19 Aug 2013 00:21:10 +1000 Damian wrote:-
    Anybody see any news from Aldi regarding all of this?

    As an aside, any reason why an Aldi (Telst$a) sim will not pick up 3G
    in Moree, where 3G is available?
     
  13. Which bands does your 'phone cover? It's possible that Telstra's using only
    the 850MHz band there and your 'phone doesn't support 3G on that band.
     
  14. Rod Speed

    Rod Speed Guest

    The web site hasn't even changed at all.
    https://www.aldimobile.com.au/
    Its never been the whole Telstra system.
     
  15. Guest

    Guest Guest

    On Mon, 19 Aug 2013 05:30:05 +1000 Bob Milutinovic wrote:-
    Samsung S3, covers all bands
     
  16. Guest

    Guest Guest

    On Mon, 19 Aug 2013 05:51:09 +1000 Rod Speed wrote:-
    How do they control which bands you use / pick up?

    Is this a SIM card thing, or at the exchange?

    And what advantage would it be to them to deny access to 3G where
    available?
     
  17. Rod Speed

    Rod Speed Guest

    Dunno, haven't bothered to check that.
    Likely it isn't about advantage, but since I don't
    know why it isnt the who Telstra system, it isn't
    obvious why it isn't. Its likely spelt out on Whirlfool.
     
  18. keithr

    keithr Guest

    Accountancy firm Ferrier Hodgson has been appointed to act as the
    administrator to the mobile service reseller that was responsible for
    acting as a wholesale intermediary between Telstra and mobile service
    providers such as Aldi Mobile and Kogan Mobile. ISPOne also had a small
    number of fixed-line products.

    Telstra and Medion Australia, which supplies the Aldi Mobile brand, have
    entered into an interim agreement to continue service to Aldi customers
    subsequent to the ISPOne administrator's termination of its contract
    with Telstra Wholesale.

    "Because Medion and Telstra Wholesale have been able to negotiate a
    direct supply agreement, there will be no changes to the services for
    Aldi Mobile," Telstra Wholesale group managing director, Stuart Lee,
    said in a statement.

    For Kogan customers, the outlook is less stable. Telstra said that it
    would not be accepting any requests for new Kogan Mobile services, and
    that existing Kogan customers would have the opportunity to switch.

    "For mobiles, we will not be accepting new activations, number port-ins
    or processing credit recharges from ISPOne on behalf of Kogan Mobile,"
    said Lee. "An interim service will be available for a fixed period of
    time for people who have active prepaid mobile services from Kogan
    Mobile, so they have time to choose their next steps."

    Kogan Mobile customers will not be able to recharge their accounts, with
    existing quotas expiring in 30 days, and Telstra porting the customers
    onto a "limited 7 Day Plan". The movement of Kogan customers will be
    prioritised by the amount of the user's balance; users with low or zero
    numbered balances will be the first moved over.

    The 7-Day Plan is a large reduction in service from the "unlimited"
    plans that Kogan Mobile offered at its launch. Telstra's interim service
    gives customers only 20 voice call minutes and 20 SMSes, while any data,
    international calling and MMS services are disabled.

    After the 7-Day Plan, if a Kogan Mobile customer has not moved to
    another provider, the customer will be unable to move calls, but can
    still receive and make emergency calls for six months. If the number has
    not been ported after six months, the service will be cancelled
    altogether, and the number placed in quarantine.

    Telstra cited the fact that it does not have access to Kogan customer
    data, and cannot therefore provide any customer support; the telco does
    not regard Kogan Mobile customers as Telstra customers.

    Customers with concerns are being urged to speak to their retail
    providers, but Lee warned of potential delays due to industry limits in
    processing churning and porting requests.

    "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. To
    provide for a smooth transition, we are providing interim voice services
    across the impacted mobile and fixed-line services," he said.

    Kogan Mobile has had a troubled existence in its eight-month tenure. The
    telco was criticised early on for blocking customers who used too much
    data, with Kogan Mobile blaming ISPOne for suspending customers without
    its authorisation. Following this incident, Kogan took ISPOne to court
    and won damages for losses suffered due to ISPOne suspending its customers.

    Earlier this month, ISPOne claimed that Telstra was attempting to
    disconnect its customers for failure to pay invoices. ISPOne won an
    injunction against such a move.

    Kogan Mobile was approached for comment, but no response had been
    received by the time of writing.

    Via ZDNet.com.au
     
  19. keithr

    keithr Guest

    ispONE’s voluntary administrator has cancelled supply of Telstra
    Wholesale Pre-Paid Mobile

    ispONE has been a customer of Telstra Wholesale for mobile products, as
    well as broadband and a relatively small number of fixed line voice
    products. ispONE on-sold these products and services to retailers and in
    some instances to the public. For example, ispONE supplied two
    companies, the online retailer Kogan Mobile and Medion (who sells mobile
    services through the ALDImobile brand), utilising the Telstra Wholesale
    Pre-Paid Mobile product.

    Telstra Wholesale has been advised that ispONE has appointed Ferrier
    Hodgson as a voluntary administrator and the administrator has cancelled
    the contract for the supply of Telstra Wholesale Pre-Paid Mobile
    products. Post-Paid Mobile, fixed and broadband (other than Pre-Paid
    Mobile broadband) services have not been impacted by the appointment of
    the administrator.

    Telstra Wholesale has entered into an interim agreement with Medion
    Australia for the supply of wholesale Pre-Paid Mobile services. Medion
    is the supplier to ALDImobile.

    How are Pre-Paid Mobile services affected?
    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.

    Given the Pre-Paid Mobile relationship with ispONE has ended, and in the
    absence of any direct contractual relationship with Kogan Mobile,
    Telstra will not be accepting new activations, number port-ins or
    processing credit recharges from ispONE on behalf of Kogan Mobile.

    An interim service will be available for a fixed period of time for
    people who have active pre-paid mobile services from Kogan Mobile, so
    that they have time to choose their next steps. The interim service will
    be provided at Telstra’s cost.

    We will progressively deactivate Kogan Mobile services according to the
    transition plan described below. Through this managed process, we aim to
    ensure that everyone can transfer their mobile phone number to another
    provider if they wish to do so.

    Transition plan to help those with Kogan Mobile services
    To minimise any inconvenience, Telstra Wholesale will provide limited
    interim services. If you have an active pre-paid service with Kogan
    Mobile, Telstra Wholesale will enable a limited service to give you time
    to choose your preferred retailer and, if necessary, move your number to
    that retailer.

    What service is available?
    Telstra Wholesale will send an SMS to users of Kogan Mobile services as
    follows:
    “An important message from Telstra Wholesale about your mobile service.
    Kogan Mobile services are no longer supported. You can't recharge but
    your number remains active for voice calls & SMS. Find out at
    http://goo.gl/9qYEEO about how you can keep your number & transfer your
    mobile service to another provider. Contact Kogan Mobile for support.”

    From today, you cannot recharge. Regardless of your plan’s expiry date,
    existing voice, SMS and data balances will be available for up to a
    maximum of 30 days from 19 August 2013. If your current plan adds a data
    allowance each month, this allowance will no longer be added.

    Over the next 30 days, Telstra will progressively move all active Kogan
    Mobile services to a limited 7 Day Plan. There are limits to the whole
    industry’s capacity to implement mobile number porting requests. If
    large numbers of people try to port out at once there may be some delays.

    The time you have left to consume any existing voice, SMS and data
    balances will depend on when you are moved to the 7 Day Plan. This could
    be any time during the next 30 days. We will prioritise those with no or
    low credit balances or time left on their plan, consistent with our aim
    to keep the mobile number porting process working efficiently.

    What is the limited 7 Day Plan?
    During the 7 Day Plan the service will be limited to 20 voice call
    minutes and 20 SMS messages to Australian numbers, while data services,
    international calls and MMS will be excluded. Voice call durations will
    be rounded up to the next whole minute and the 20 minutes allowance
    includes calls forwarded to voicemail.

    Unplayed voicemail messages are held for 10 days. Played voicemail
    messages are held for 7 days. Played and stored messages are held for 10
    days. Voicemails can be played until their expiry. Voicemail retrieval
    will not use up your 20 voice call minutes during the 7 Day Plan.
    Current voicemails cannot be retrieved after you transfer your mobile
    phone number to another service provider.

    When will the 7 Day Plan start for me and how will I be notified?
    Over the next 30 days, Telstra Wholesale will progressively send out
    another SMS message, confirming that start of your 7 Day Plan.

    We will send this SMS message in batches every day over the next 30 days
    and we will prioritise those with little or no remaining credit balance.

    What happens after the 7 Day Plan?
    After the 7 Day Plan, and for a period of 6 months, the service will no
    longer be able to make calls, although it will still receive calls and
    you’ll be able to make emergency 000 calls. If the service has not
    ported out after the 6 month period, the service will be cancelled and
    the number placed in quarantine.

    If you lose outbound service before your 7 Day Plan
    You may lose your outbound voice and SMS service if your credit, plan or
    monthly recharge expires before your 7 Day Plan begins. Data top up will
    also no longer be available.

    You will not be able to recharge, so if you lose your outbound service,
    we advise you to transfer your service to another provider immediately.

    Transferring to another mobile provider
    If you are affected by this situation you may want to move to another
    mobile service provider. You can keep your existing mobile number when
    you change to a new service provider. This is known as mobile number
    porting.

    Mobile service providers will act on porting requests from anyone
    wishing to transfer their mobile number to the supplier of their choice.
    There are limits on how many ports the industry can process in addition
    to normal sales and activation activity, so please be patient. Telstra
    has briefed the industry group that ensures the efficient operation of
    Mobile Number Porting to prepare for increased volumes of transfers as a
    result of this event.

    The Australian Communications and Media Authority (ACMA) publishes a
    factsheet on mobile number portability here.

    Contact your service provider for support
    Please contact Kogan Mobile for customer service support and for any
    other matters.

    Customers of Kogan Mobile are not customers of Telstra. If you are a
    customer of Kogan Mobile, we do not have access to your personal
    information and we cannot provide you with customer service support. The
    company that sold you your service is your retailer and your best point
    of contact.
     
  20. keithr

    keithr Guest

    Dear Kogan Mobile Customers,

    Important update concerning the continuity of your Kogan Mobile Service

    As a challenger brand, we’re used to being up against some of the
    biggest companies in the world to get the best deal for our customers.
    We’ve successfully disrupted entire industries, with our low margin,
    high volume technology business.

    While the launch of Kogan Mobile was a success for consumers, securing a
    great deal on mobile access at an unbeatable price, not everyone in the
    industry was happy about it.

    We have fought hard for the Australian consumer, spending countless
    hours and millions of dollars in legal and administrative costs to
    defend your right to a fair deal! Our intention from day one was to
    build a long-term, sustainable, and value-based alternative to the big
    telcos. We believe technology makes the world a better place, which is
    why we have fought hard for better value mobile deals for everyone in
    Australia. The endless negotiations, and even the occasional visit to
    the Supreme Court to protect your interests and ensure that you continue
    to get the best deal have worked, until today.

    There are forces at play in the Australian telecommunications market
    that are beyond our control, very powerful, and impossible to ignore.
    When over 100,000 people took their services to Kogan Mobile, in such a
    short space of time, it attracted a lot of attention. Unfortunately and
    frustratingly, it appears like the telco heavyweights may be determined
    to take their former customers back and they may be prepared to do so by
    force.

    We believe that fair and open competition is great for consumers, but
    unfortunately that competition is being forcefully limited today.

    In our email last week, we advised that Kogan Mobile had recently become
    aware of the following -

    Telstra is in dispute with ispONE, Telstra’s sole distributor of
    prepaid 3G mobile services and Kogan Mobile’s essential supplier
    Telstra had taken steps to terminate its contract with ispONE. If
    Telstra terminates its contract with ispONE, this would be very likely
    to impact Kogan Mobile’s own customers’ services (through no fault of
    Kogan Mobile)
    ispONE had commenced proceedings against Telstra in the Federal
    Court and obtained a short term injunction to restrain Telstra from
    terminating its contract with ispONE
    The Federal Court ordered Telstra and ispONE to attend mediation.
    Although not party to the Federal Court proceedings, Kogan Mobile was
    permitted to (and did) attend the mediation

    We now understand the mediation between Telstra and ispONE failed to
    achieve a satisfactory result for Telstra. Telstra has today notified
    Kogan Mobile that it will be terminating the supply of 3G Prepaid Mobile
    services to its wholesale reseller ispONE within 24 hours, and has
    established a transition arrangement in respect of your service. Kogan
    Mobile understands that ispONE has appointed voluntary administrators today.

    Kogan Mobile has tried to do everything it can to protect its customers.
    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. This will
    impact the continuity of your service, and those of other Kogan Mobile
    customers. While the timing and nature of the transition arrangements
    are dictated by Telstra, Kogan Mobile has negotiated the optimal
    arrangements that Telstra would allow.

    While this matter is entirely out of the control of Kogan Mobile, we
    nevertheless sincerely apologise for any inconvenience that these
    transition arrangements may cause to you. Importantly, Kogan Mobile
    customers who have remaining credit at the time their services are
    terminated by Telstra will have their entire remaining balance refunded
    to them by Kogan Mobile. The refund amount shall be calculated as the
    pro-rata amount remaining on the date of deactivation of service.
    We’re Devastated

    We are extremely upset to have to bring you this news. We set out with
    the aim to make mobile services in Australia more affordable for all,
    and were well on the way to achieving this goal. The migration to Kogan
    Mobile was one of the biggest in Australian telecommunication history.
    As we lowered the prices for services, we were happy and so were our
    customers - but not everybody in the industry was pleased with what we
    were doing.

    As you may have seen recently, many companies have fallen out of the
    prepaid unlimited market. We’re afraid that due to certain industry
    dynamics, this is a sign of things to come. We’re concerned that it
    won’t be long before your choice as a consumer is eroded almost
    completely. We worry that the big telcos in Australia will continue
    their consolidation of power. Inevitably, this will mean higher prices.
    We’re not happy about this but at this stage it’s not something we can
    do anything about. Kogan Mobile has been muscled out of the mobile
    industry against our will by a force much bigger and much stronger than us.
    What will happen to my mobile number?

    Don’t worry, your number is safe! Your mobile number will stay active
    for 180 days from today. You will be able to transfer (port) your phone
    number to another provider at any time for the next 180 days.
    What does this mean?

    Based on information provided to us by Telstra, we understand that the
    following will be the transition arrangements that Telstra will enforce -

    Within the next 24 hours, Kogan Mobile customers will be unable to
    activate new services, or recharge existing services
    In the coming weeks, you can expect to receive an SMS from Telstra
    advising you that your service will cease within a limited period (up to
    60 days), but not before you receive a second SMS advising that there
    are 7 days to change (port) your number to an alternate provider
    During this period, you will be able to use your existing service
    and consume your existing credit
    Telstra will then send a second SMS at some stage during the 60 day
    transition period, which will advise that there are 20 minutes of calls
    and 20 SMS remaining credit available for use within 7 days to
    Australian numbers, while data services, international calls,
    international SMS and MMS will be excluded. You will continue to be able
    to retrieve your voicemail messages during this 7 Day Plan and for up to
    10 days afterwards.
    For 180 days from today, customers will still be able to receive
    calls, receive SMS and transfer (port) their mobile numbers and make
    emergency calls at any time for 6 months thereafter. If your service has
    not ported out after the 6 month period, the service will be cancelled
    by Telstra
    Kogan Mobile recommends that, upon receiving the second SMS from
    Telstra, you take action to transfer (port) your mobile number to
    another provider, or otherwise make arrangements for continuity of your
    mobile service. We also encourage customers to plan ahead for receipt of
    the second SMS from Telstra by acquiring a new SIM card from another
    provider as soon as possible.
    On behalf of our customers, we are currently seeking to negotiate
    some deals with several leading mobile phone providers. We will keep you
    informed about any special offers we manage to negotiate on your behalf
    and which you may wish to take up.

    What will happen to the unused credit I've paid for?

    Once you have ported your number to another provider, or your service
    otherwise ceases, Kogan Mobile will, of course, refund to you the unused
    portion of your Access Period back to the credit card or Paypal account
    that you originally paid with.

    As a consequence of Telstra’s termination of the 3G Prepaid Mobile
    services, the Kogan Mobile customer service team is likely to be
    inundated with calls and emails, and is likely to take longer than
    normal to respond. We will provide further email updates to answer your
    most common questions, and will provide you with further information as
    it comes to hand.

    If you have an urgent enquiry, please email and
    we will respond as quickly as we can.

    Thank you for your patience and understanding.

    For ease of reference, this is a copy of the email we sent you on
    Tuesday 13th August:

    Thank you for joining us on the journey to make mobile access in
    Australia more affordable. We entered the mobile industry in order to
    increase competition and give consumers more choice and better value.
    Since starting Kogan Mobile, we are proud to now serve more than 115,000
    active customers.

    We have fought hard for the Australian consumer – there have been
    endless negotiations and even the occasional visit to the Supreme Court
    to protect our customers’ interests and ensure that our customers
    continue to get the best deals. However, there are forces at play in the
    Australian telecommunications market that are beyond our control, very
    powerful and impossible to ignore.

    You may be aware that we procure our mobile services for part of the
    Telstra 3G Network through Telstra’s sole and approved distributor –
    ispONE. ispONE is the only company in Australia that wholesales
    Telstra’s Prepaid 3G Services and is essential to the operation of our
    and any business through that network. Telstra’s Prepaid 3G Network is
    not integrated with any other wholesale platform, other than ispONE’s.

    Since day one, Kogan Mobile has complied with all its obligations to its
    service providers. We keep our agreements. We have paid every invoice on
    time or early. Like our customers, we expect our service providers to
    deliver what they have been paid for.

    Kogan Mobile has recently become aware of the following -

    Telstra is in dispute with ispONE, Telstra’s sole distributor of
    prepaid 3G mobile services and Kogan Mobile’s essential supplier
    Telstra has taken steps to terminate its contract with ispONE. 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)
    ispONE has commenced proceedings against Telstra in the Federal
    Court and obtained a short term injunction to restrain Telstra from
    terminating its contract with ispONE
    The Federal Court ordered Telstra and ispONE to attend mediation.
    Although not party to the Federal Court proceedings, Kogan Mobile is
    permitted to (and will) attend the mediation

    Kogan Mobile is doing everything it can to protect its customers.

    We are monitoring these developments closely, as they may affect the
    continuity of our prepaid mobile services. We will provide a further
    update when further information comes to hand.

    You may also wish to contact Telstra directly and ask Telstra what it
    intends to do in respect of its wholesale prepaid mobile business and
    customers’ mobile telephone services if it achieves its goal of
    terminating its contractual arrangements with ispONE.

    Kindest regards,
    Kogan Mobile
     
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