Ruslan Kogan took on ispONE and won

Ruslan Kogan

Last month the online retailer faced backlash from consumers who were unceremoniously dumped from the network with little warning because they ‘used up too much data’. It turned out the the dumping was not being done by Kogan Mobile, rather by their wholesaler ispONE.

Kogan Mobile follows the MVNO model under which they own the end customers but not the infrastructure. The infrastructure is supplied by Telstra via the wholesalers like, you guessed it, ispONE. Legally the wholesaler should have nothing to do with the end users, but in this case ispONE communicated directly with users who exceeded a monthly data limit and kicked 600 of them off the network.

While customers railed against Kogan, the MVNO hauled ispONE to court for breach of contract. And won. The judge ruled┬áthe wholesaler did not have the authority to suspend user accounts. As a precautionary measure Kogan have modified their end user terms of service for all users to limit daily data usage to 400 MB on ‘Unlimited’ plans.

Mobile wholesale business runs on the assumption that most people don’t use up all their available quota. But usage patterns are changing. According to Cisco average data usage is already 342 MB a month and expected to hit 2.6 GB in 5 years. Businesses will have to work out alternatives if they want to remain profitable in the long run.

Click to see all Kogan Mobile plans starting from the free SIM with $100 in credit to Unlimited plans with 6GB data valid for 365 days.

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