Business as usual for Aldi Mobile despite ispONE collapse

Low cost MVNO Aldi Mobile will continue to operate as usual, but Kogan Mobile will be shut down

Low cost MVNO Aldi Mobile will continue to operate as usual, after it struck a deal directly with Telstra wholesale following the collapse of original wholesale provider ispONE.

Aldi Mobile will continue to operate as usual, despite the collapse of former wholesaler ispONE.
Aldi Mobile will continue to operate as usual, despite the collapse of former wholesaler ispONE.

ispONE, which sells Telstra 3G services in Australia to MVNO's Aldi Mobile and Kogan Mobile, today informed Telstra wholesale that it has entered voluntary administration, effectively cancelling its contract to provide 3G mobile services.

However, Telstra wholesale has announced that it has entered into an "interim agreement" direct with Medion Australia, who sells mobile service through the Aldi Mobile brand.

"Telstra Wholesale has entered into an interim agreement with Medion Australia for the supply of wholesale prepaid mobile services. Medion is the supplier to ALDIMobile."

"Because Medion and Telstra Wholesale have been able to negotiate a direct supply agreement there will be no changes to the services for ALDIMobile."

ispONE was due in court tomorrow to fight allegations from Telstra that it owes around $12 million in unpaid bills. However, the Australian Federal Court today dismissed the case, effectively also dismissing Telstra's appeal against an injunction placed on the company last week.

"Telstra Wholesale has been advised that ispONE has appointed Ferrier Hodgson as a voluntary administrator and the administrator has cancelled ispONE’s contracts for the supply of Telstra Wholesale pre-paid mobile products."

While Aldi Mobile services will not be affected following the collapse of ispONE, Kogan Mobile will be shut down.

Telstra Wholesale's group managing director, Stuart Lee, has confirmed that Telstra would not be accepting any requests for new Kogan Mobile services from ispONE.

"For mobiles, we 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 they have time to choose their next steps."

Telstra wholesale has also published a statement on its Web site detailing the process to "progressively deactivate" Kogan Mobile customers over the next 30 days.

The telco will move all active Kogan Mobile services to a limited seven day plan that includes 20 voice call minutes and 20 SMS messages, but no data, MMS messages or international calls. The seven day plan will effectively enable Kogan Mobile customers to port their number to a new network.

Over the weekend, EFTM revealed that Kogan Mobile removed its 90 day and 365 day recharge offers which had been available since the network was launched in December 2012.

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

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30 Comments

Lateralnw

1

So what happens to me? I just purchased a Kogan 365 day plan. I stand to loose my money it seems or I have to go to consumer affairs/Telco Ombudsman to get my money back!!
What a bloody pain... Thanks for nothing you useless ISPone Directors... I hope they shut down IBoss and throw you lot in jail.

Jake

2

@Lateralnw Read the Kogan email. Kogan will be handeling refunds directly for all unused credit on a pro-rata basis. No need to go straight to the Ombudsmen and get angry.

Also, without knowing exactly what went on, your comments are just unnecessary and inflammatory. Would you have preferred to maintain the status quo of high mobile access. I recommend that you stick to paying for premium services that include allowance for support to irate consumers.

Steve

3

Sign up with ALDI, same network similar costs

fab

4

What is the cost of Aldi ? WHere can I join Aldi ?

Maximus

5

ALDI is here: https://www.aldimobile.com.au/
I liked them better than Kogan because the credit lasts 365 days, I don't think Kogans did. Their sort of service is NOT good with data use with no data plan though, credit disappears at a fast rate if you have some app pulling a little data here and there I found.

Jo Fraser

6

I had to wonder how long Telstra would last. With the NBN the major expansions of their 4G network, they'd be losing a heap of customers soon to random company's that will be able to provide an equal service on the NBN. Seems like Telstra's planning ahead for the loss.

kosta

7

pity about kogan, liked the plan i was on...amaysim looks pretty good too $39.90 unlimited and 50% off the first month. pretty good deal

Chris

8

Shame on you Telstra. You have just verified why I never wanted to go with you. Shame on you.

TAI

9

if you get aldi $35 bolt on you get 5GIG worth of data with it so it is definably worth it

Pissed of Customer

10

Yahoo, celebration time....Had the misfortune to switch to Kogan in January, customer service was NIl, callcentre wasnt available from NT, complaints nil care by Ruslan or his company.
Twitter and email complaints to them got one result - NOTHING, ignored totally. WOuld not deal with this company EVER again

kogan fan club

11

try aldi plan,
seem to be the next provider for me.
dont go with amaysim been there not happy,if you have an iPhone u get charge every time u switch phone off and turn back on,premium sms's extra,be careful with amaysim.and I forgot they use optus as there provider which have bad coverage.sorry but telstra is the provider for mobile.Telstra have us by the BALLS.enjoy these low cost unlimited plans because they will not last.TELSTRA will make sure of that.

taffy

12

we will now be screwed by Telstra, it seems kogan was to good and threatened Telstra profits, the politicians will now make a lot of noise with one finger jammed up their ar**, as was said they WILL have us by BALLS

Jo of Penrith NSW

13

I have both ALDI and AMAYSIM sims for my phones, both are good, did not go with KOGAN because of its restriction on daily data allowance and looking back I was not comfortable on my read of its mobile services for some reason that I could not exokain,

Don

14

I don't blame Kogan, they were at the mercy of ispONE. What is curious is why was ispONE the SOLE provider of Telstra wholesale services. AND Telstra has entered an INTERIM agreement with Aldi mobile, so what the heck does that mean, possibly a delaying tactic to give time to port out Kogan numbers, then pull the plug on Aldi. Otherwise wouldn't they have supported Kogan too? Maybe they hope it will BOOST their profits by eliminating competition, after seeing how popular these plans are, if you get my drift.

s.g

15

SHAME ON TESTRA, FOR KILLING OFF THE COMPETITION....VERY UNAUSTRALIAN.

Dave

16

You blame Telstra because they wanted to be paid for the services that they provided? Low cost resellers have a place in the market but they also carry higher risk. If you are prepared to take that risk for lower prices, then that's up to the individual. But you can't blame Telstra for trying to recoupe their costs for wholesale services that they have provided and that other companies have on sold and charged their customers for.

John

17

I have had Kogan for past 6 months and have been extremely satisfied. It seems that Telstra are really trying to screw the public down to their plans (extremely expensive). They are also holding back on the NBN asbestos pit replacement, is all of this a part of a greater plan to drag back all Telco services to Telstra? When are politicians going to take notice, after all it is ELECTION time???????

Doug

18

Found Kogan to be OK. Try TPG , was with them before and were OK to deal with. Use Optus which is their only downfall.
How long will the Aldi deal last.

Monkey Hollow

19

How about Kogan works to setup a new agreement with Optus? I hate all the faffing around that is required to port from one provider to another. Optus can instantly grab 120k new users worth of wholesale revenue and hopefully Telstra will slowly rot away like its neglected copper network.....

UrSOUL

20

Don't borther with TPG...They require a $20 credit always on your account which is for incidentals like international calls etc...and it is auto top up once credit is used. but the punch line is...your will not be able to get any credit back if you don't use them when you leave TPG! This $20 is basically bonus for them!

Mussy

21

If you want to blame anyone for the mess with telecommunications blame the politicians that privatised Telstra way back. The obvious and better solution would have been to split the company into an infrastructure owner and a retail service company. One would on sell its infrastructure to all telcos while using its profits to to maintain and develop one infastructure for all telcos to buy and use. We wouldn't have the duplication of towers and no doubt have a better coverage in remote areas.

The conflict of interest we have where Telstra and Optus own the infastructure, on sell it when they want and manipulate the market does not put all providers on a level playing field.

How stupid were the politicians not to have understood this at the time? Not that they are any brighter now!

Mitch

22

Shame what Telstra has done with Kogan.
Telstra is not the only one to blame, politicians are big blame party here as well.

Kevin26024

23

"Telstra Wholesale has entered into an interim agreement with Medion Australia for the supply of wholesale prepaid mobile services. Medion is the supplier to ALDIMobile."
"Because Medion and Telstra Wholesale have been able to negotiate a direct supply agreement there will be no changes to the services for ALDIMobile."

I understood from press reports that ispONE was the only reseller of Telstra Wholesale Prepaid, from the statements repeated from above does that mean that a new reseller of Telstra Wholesale Prepaid is Medion and what does the words "interim agreement" really mean. I will be porting to AldiMobile in the morning if I can get SIMs.

just want a solution

24

I was with Kogan and happy with their service, I'm hearing that Aldi is good too and similar prices, but does anyone know what 'interim agreement' is? Will the plug be pulled on aldi too? I don't want to go through this drama again.... !

From reading through a bit, it seems that ISPone is the organisation to blame here - they agreed to pay telstra a certain price for their services, but then sold it to Kogan too cheap and couldn't pay their telstra bills... as far as I understand both telstra and Kogan are only operating as they should, it's ISPone who has been dodgy.

Allen

25

This falls directly on our politicians of the day when Telstra was privatized. Here we have telstra with a monopoly on the telecommunication system and operate on big profits to rip every one off and politicians say nothing only its competition yet telstra was spoon fed like a spoiled kid and other telcos have to struggle. Take the NBN telstra didn't want to play ball until they got what they wanted just like some spoiled brat taking his bat and ball so no one could play. You guessed it the whole telco system reeks of foul play that's why mobile phone make enormous profits. So its no surprise not to support Kogan and have just an interim agreement with aldi.

affordable mobile

26

Hopefully the ACCC will step in and sort Telstra out. As mentioned previously, Telstra seem to be closing down the competition.

GEN What!

27

I was very happy with Kogan. Extremely annoyed with ispONE - another dodgey company (in for the quick buck!). Telstra - well that's a whole other story - the short-sighted politicians gave into that privatisation deal just a few years ago! Now just wait and see how long the arrangement for ALDI customers lasts!

mick

28

my brother ported his number from Kogan to Aldi on monday and he still has NOT been activated with ALDI what the heck is going on ! grr he is fuming coz the 20 mins voice calls he has got ( for the interim 7 day period ) is used up he cannot call aldi to fix the prob ..i am still on the phone to ALDI WAiting over 30 mins so they fix it and call his phone ..he as at work on the road this is BS! :( grr fix the prob up aldi!

Rhonda

29

I ported to Aldi from Kogan on Tuesday and even though I had paid for a year with Kogan, I have no service on either.
Have a medical emergency with family, been on the phone (from landline) to Aldi 4 times, for at least 20-30 minutes, no answer, have recorded issue online to Aldi, no reply....soooo frustrated

Michelle

30

I ported Wed evening and have no service. Since then Telstra was trying to get me to Boost stating they had enough info to immediately port me. Aldi was also trying to get me to take a new number rather than complain. They are both not happy with Kogan and I'm sure not happy that customers have been so loyal to Kogan. Hopefully I will port soon. Telstra was asked many times by customers alerted by Kogan what the backup plan was but was told 'it was up to the courts'. Telstra had no plan to support customers other than suggest Boost. I'm sure this has disrupted many businesses and families, particularly low income people and regional Australians who can't get a fair deal from the one or two networks on offer in their region. I would hope for ministerial intervention but it is election time.

Comments are now closed

 

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