Feeds

Wholesale telco IspONE goes titsup, Kogan mobile going dark

Telstra pulls the plug as ispONE calls in the administrators

Intelligent flash storage arrays

Wholesale telco ISPOne appointed administrators who have cancelled its contract to resell Telstra mobile connections and appointed administrators, leaving some of its wholesale customers without a network connection with which to serve their customers.

ISPOne's been tottering for some time, but has tried to negotiate with Telstra so it can continue its service.

Those negotiations seem to have been fruitless, as a Telstra statement says the telco “has been advised that ispONE has appointed Ferrier Hodgson as a voluntary administrator”.

The statement goes on to say that Telstra has no relationship with Kogan Mobile, the mobile phone service offered by mouthy electronics e-tailer Ruslan Kogan, and explains Kogan customers will soon lose service.

Kogan has posted a statement of his own, apologising for the mess, offering refunds and saying that despite “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.”

Another ispONE customer, ALDI Mobile, has been able to strike a deal with Telstra Wholesaleso. ALDI customers can carry on as usual, but Kogan customers will have to adopt a new plan with another carrier, virtual or actual.

In true telco industry style, the carrion crows are already hopping as close to the corpse of ispONE as they dare – Optus has sent Vulture South a press release about a Kogan-to-Optus migration plan.

IspONE is reportedly buried under over $AUD10m of debt, from which it is unlikely to emerge now that its customers have gone elsewhere.

Kogan's statement expresses fears for the future of mobile virtual network operators, or at least for cheap ones.

That's not a terrible argument: Australia has a history of telcos competing on price and foundering not long afterwards. One.Tel is the most spectacular example of an attempt to buy market share, but Hutchison Telecom's entrance to Australia with the Orange and 3 brands featured years of deep discounting … and balance sheets so ugly the merger with Vodafone became a sensible exit strategy.

Customers of the likes of Amaysim and LiveConnected may therefore be looking over their shoulders just a little today, hoping the demise of ispONE is an isolated incident and not the beginning of an industry shakeout. ®

Security for virtualized datacentres

More from The Register

next story
TEEN RAMPAGE: Kids in iPhone 6 'Will it bend' YouTube 'prank'
iPhones bent in Norwich? As if the place wasn't weird enough
Consumers agree to give up first-born child for free Wi-Fi – survey
This Herod network's ace – but crap reception in bullrushes
Crouching tiger, FAST ASLEEP dragon: Smugglers can't shift iPhone 6s
China's grey market reports 'sluggish' sales of Apple mobe
Sea-Me-We 5 construction starts
New sub cable to go live 2016
EE coughs to BROKEN data usage metrics BLUNDER that short-changes customers
Carrier apologises for 'inflated' measurements cockup
Comcast: Help, help, FCC. Netflix and pals are EXTORTIONISTS
The others guys are being mean so therefore ... monopoly all good, yeah?
Surprise: if you work from home you need the Internet
Buffer-rage sends Aussies out to experience road rage
EE buys 58 Phones 4u stores for £2.5m after picking over carcass
Operator says it will safeguard 359 jobs, plans lick of paint
prev story

Whitepapers

A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Beginner's guide to SSL certificates
De-mystify the technology involved and give you the information you need to make the best decision when considering your online security options.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.