Kogan angrily hits back at Telstra after ispONE collapse

Kogan Mobile hits back at Telstra following closure

Kogan Mobile has angrily hit back at claims by Telstra that the telco is prepared to enter into a direct arrangement with the embattled MVNO, following the collapse of wholesale provider ispONE earlier this week.

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The company has today published a lengthy blog on its Web site responding to Telstra, just a day after the telco claimed in its own blog post that it is prepared to enter into a direct arrangement with Kogan.

Kogan said it was concerned at the "misinformation and confusion" that may arise as a result of Telstra's comments.

"We are concerned at the misinformation and confusion that may arise as a result of Telstra’s communication."

"Telstra indicated that it is 'prepared to enter into direct arrangements with both Kogan and Medion (who supply ALDImobile) on commercial terms'. This is news to Kogan Mobile, and is music to our ears. The only problem is that we’re not too sure it’s actually true."

"If Telstra is truly prepared to enter into a direct arrangement with Kogan on 'commercial terms', we invite Telstra to be open and transparent with the Australian public by disclosing the rates and terms on which it is prepared to supply Kogan. We have no skeletons in our closet."

Kogan goes onto claim that it has not received any terms of direct supply from Telstra, which could have enabled the network to continue running as usual.

"The reality is that to date, Kogan Mobile has not received even remotely 'commercial', let alone competitive, terms of direct supply. Kogan Mobile has done everything possible to protect its customers: if commercial terms of continued supply were available, of course Kogan Mobile would have taken them up, and still will."

Unlike Kogan Mobile, competing low cost MVNO Aldi Mobile will continue to operate, after it struck a direct deal with Telstra wholesale.

The collapse of ispONE, which triggered the shut down of Kogan Mobile, was due to the fact that the company entered voluntary administration earlier this week, effectively cancelling its contract to provide 3G mobile services.

The company was one of the largest wholesale mobile providers in Australia. It had been a customer of Telstra Wholesale for mobile products, as well as broadband and a "relatively small number of fixed line voice products."

Kogan earlier this week said it was "devastated" and "extremely upset" at being forced to close its business, saying it had "been muscled out of the mobile industry against our will".

As part of the Kogan Mobile shut down, Telstra wholesale will "progressively deactivate" approximately 120,000 Kogan Mobile customers over the next 30 days.

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Ross Catanzariti
Topics: ispONE, Kogan Mobile, kogan, MVNO, telstra wholesale, pre-paid mobile, Telstra
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