ispONE in voluntary administration
Posted on August 21, 2013
2 min read
This week people may have seen that ispONE has gone into voluntary administration and the impact this has had ispONE’s customers, including Kogan Mobile. We are concerned at the misinformation and confusion around our role in this matter.
ispONE had been a customer of Telstra Wholesale for mobile and fixed line products. ispONE on-sold these products to retailers and in some instances to the public. For example, ispONE supplied the online retailer Kogan and Medion (who supply the ALDImobile brand) utilising the Telstra Wholesale pre-paid mobile product. Under this arrangement, Telstra had no direct relationship with Kogan, Medion or ALDI.
On Monday, ispONE went into administration owing tens of millions of dollars. The voluntary administrator who took over ispONE, Ferrier Hodgson, cancelled the Telstra Wholesale pre-paid mobile contract.
This meant there was no supplier for Kogan and Medion.
We are prepared to enter into direct arrangements with both Kogan and Medion on commercial terms. Fortunately, we were able to enter into a direct supply arrangement with Medion so that ALDImobile can continue to offer services to its customers. To date, we have not been able to reach an agreement with Kogan.
The decision by Ferrier Hodgson, as ispONE’s administrator, to terminate Telstra’s Wholesale’s pre-paid mobile contract meant we had no choice but to progress with disconnecting Kogan’s services, although we are currently providing an interim service at our own cost to Kogan end users so they have time to choose their next steps.
Telstra has played a leading role in the highly competitive and dynamic Australian mobiles market since its inception. In addition to providing mobile services to millions of Australians directly, our wholesale mobile offerings result in more choice for consumers by providing access for other retailers to parts of our 3G mobile network covering 98% of the Australian population.
We have a strong business providing mobile products through Telstra Wholesale to a number of mobile retailers and this is not going to change.
For any of Kogan’s end users who are impacted by their retailer’s decision to no longer provide services, more details on the interim arrangements we have put in place is available on the Telstra Wholesale website.