Past problems *big time* with the kogan mobile phone 'business model'...
"Danger Will Robinson - do not go there"
$$$$$$$$$$$$$$$$$$$$$$$$
(From the Fin Review)....
Andy Taylor is not surprised about the collapse of telco ispONE and one of its main customers Kogan Mobile .
“It was always going to happen," says Taylor, who is the founder and chief executive of Yatango Mobile , the company which has won an exclusive endorsement from Ruslan Kogan ’s mobile phone service.
Kogan Mobile and the Aldi supermarket chain relied on ispONE, which was placed in administration on August 19 owing debts of between $25 million and $30 million, for access to Telstra 3G services.
Aldi has done an interim deal with Telstra to ensure its 130,000 customers can keep using their phones but Kogan’s 120,000 customers are required to make alternative arrangements.
Taylor says cheap deals from ispONE-associated retailers were always going to be unsustainable.
“When Kogan came into the market and undercut [competitors] by $10 [per month], we knew that was not viable," Taylor says.
“Somebody was losing money and it was very clear it was ispONE who was taking on the risk."
“On face value, Aldi will not be able to sustain that price point," Taylor says.
Kogan Mobile has referred its displaced customers to Yatango, which is offering them unlimited talk, text and 6GB of data for free for 30 days. They are also entitled to a free SIM card with no delivery fee.
Yatango began offering phone services in February. Taylor will not disclose customer numbers or how many he expects to get from Kogan Mobile but says the chance to bring across Kogan customers is a “great opportunity" for his business.
Neither Taylor nor a representative of Kogan Mobile would disclose to BRW whether Kogan is being paid by Yatango for the provision of an exclusive endorsement.
Yatango uses the Optus network and doesn’t rely on a wholesaler for access.
Taylor says his company’s direct relationship with Optus is important to protect customers and build confidence in its business model.
Up to 80 per cent of Kogan Mobile’s customers would save money switching to Yatango, according to Taylor. He says his business personalises plans much more than most providers, which helps ensure people aren’t paying for services they are unlikely to use.
Taylor is confident that Yatango can grow strongly in Australia and is eyeing international opportunities. A deal with a US carrier is about to be finalised, he says.
Read more: http://www.afr.com/leadership/entrepreneur/koganmobile-and-ispone-failure-was-always-going-to-happen-20130823-jz3hl#ixzz4xijMLQ1a
Follow us: @FinancialReview on Twitter | financialreview on Facebook
Sent from my SM-G950F using Tapatalk
