Kogan and Aldi Mobile phone services on a sinking ship?

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.

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Don...

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Don McKenzie 

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Don McKenzie
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Thanks another article

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Petzl 
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Petzl
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.

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Don McKenzie 

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Don McKenzie

Good one Don, must be a member to login and read

Reply to
SG1

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.

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Bob Milutinovic 
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Reply to
Bob Milutinovic

Yep, there's no login request.

Reply to
Damian Andrews

?? agreed, no need to log in.

Don...

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Don McKenzie

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.

Reply to
keithr

court finding 20 minutes ago:

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

Don...

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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."

Reply to
keithr

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

Reply to
Damian

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?

Reply to
<n0spamp

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.

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Bob Milutinovic 
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Reply to
Bob Milutinovic

The web site hasn't even changed at all.

formatting link

Its never been the whole Telstra system.

Reply to
Rod Speed

On Mon, 19 Aug 2013 05:30:05 +1000 Bob Milutinovic wrote:-

Samsung S3, covers all bands

Reply to
<n0spamp

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?

Reply to
<n0spamp

Dunno, haven't bothered to check that.

Dunno.

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.

Reply to
Rod Speed

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

Reply to
keithr

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

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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.

Reply to
keithr

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 snipped-for-privacy@kogan.com.au 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

Reply to
keithr

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