Kogan Launching Low-Cost Pre-Paid Offering?

Online gadget retailer Ruslan Kogan has been selling cheap mobile phones online for some time, but now we're hearing murmurs that Kogan is about to start getting into the low-cost pre-paid market with new offerings powered by the Telstra network, and I'm inclined to believe it myself.

It all started on September 20 when Kogan registered the koganmobile.com.au domain name followed by the appearance of an app on Google Play which lists prices for an as yet unreleased Kogan Mobile pre-paid offering.

EFTM has done a great job looking into the matter, and revealed today that the pricing structure would start at $36 per month for an unlimited voice call service for 30 days, ranging through to a 90-day offering for $79 and a 365-day option for $299. What that screenshot didn't list, though, is the cost of data.

From EFTM:

Kogan Mobile will launch with a pre-paid no contract rate of $29 per month for unlimited calls and texts and 6GB of data. You read it correctly – 6GB of data and unlimited calls, on the Telstra network for $29 a month. Pay up front for 3 months and you’ll save $8 with a price of $79 on that bundle, or if you’re happy to commit to 12 months up front you’ll pay just $299 – saving you $49 on the month to month rate.

Kogan already sells cheap handsets, so offering bundled, pre-paid SIM cards with the devices seems like a no-brainer.

The report also states that Kogan is offering telco services via the Telstra network, which the telco has been wholesaling since January.

What's important to note about the wholesale offering from Telstra, however, is the fact that the service isn't the telco's Next G service. It's actually just a 3G network capable of down speeds between 550 kbps-3Mbps. Once again, not Next G.

Here's the only comment Ruslan Kogan had to offer about the carrier rumour:

We're constantly looking for new ways to shake up the consumer space and help Australians get a better deal.

That's not a confirmation or a denial, but I really hope that it's true. There's nothing wrong with more carrier competition on the market. [EFTM]

Image: Ruslan Kogan



    I know Telstra's 4G service is limited at the moment... but I cant see myself signing up for it unless it included 4G access.

    Its great pricing.... but it is stunted compared to being on Telstra's flagship network.

    That's an excellent price for unlimited voice/6GB of data, yes. Also an attractive option for those that require Telstra's coverage.

    The high data quota is spoiled somewhat by the slow 1.1Mbps speed cap though. And if you don't need that much voice or data (most people don't), there are much cheaper options ($70-200/year). Still, I do know a few people that can't stop talking on their mobiles...

    "up to 1.1mbps"
    Nope, the maximum theoretical speed of the TW3G product is 7.2mbps. And pop coverage is 98.5%
    No LTE. http://mobilemaps.net.au/3G has coverage

      From the link: "...typical download speeds of between 300 kilobits per second (Kbps) and 1.1 megabits per second (Mbps)"

      You'll never see anything close to theoretical.

        The ZDNET link? The same one that says the TW 3G product is only 97% pop coverage?
        It had a few inaccuracies in it at the time of writing which was almost 12 months ago now.
        And I can pull between 5.5mbps and 6mbps on Telstra now using a 7.2mbps device .. the 1.1mbps number is not a hard limit

    I'm currently on Telstra Pre-Pay with my iPhone 5. I, too, would change if it was LTE. However, in the Sydney CBD the LTE network is so clogged that you only get about 2Mbs downstream anyway. One to watch....

    My Telstra speeds here aren't much better than 1.1Mbps anyway, so I could put up with it. Sounds awesome to me!

    If data usage is charged in 8KB blocks, awesome. Until shown otherwise however, I expect it to be 1MB blocks which would bring it back in line with other offerings under normal usage. Needless to say I'll be reading the fine print.

    What are you talking about, not Next G. Next G IS 3G. I thought this was a tech site, and you don't even know what the Next G service is? Pretty weak.

      First of all, don't be presumptuous and rude. Of course I know what Next G is. The service Telstra is wholesaling isn't Next G. Next G (850MHz network) is reserved for them because it's their network and why shouldn't they. The network that Telstra wholesales is a different 3G network. That 3G network -- the one Telstra is wholesaling -- covers 97% of the population and gives you data speeds ranging from 300kbps to 1.1MBps. Telstra wouldn't sell off its flagship Next G or 4G networks to anyone in a hurry, simply because the congestion is bad enough as it is. Pull your head in.

        i think this video covers the correct response


        That just splitting hairs though. Your complaint seems to be that it's not the right 3G, when in reality there is negligible difference for the vast majority of users.

        It's the same physical network though.. just restricted speed and access.

      Sorry Karl - I believe Luke just wiped his dick all over your face, and probably enjoyed doing it.


      Gizmodo agent.

      Karl - wrong.
      NextG is not the same as 3G.
      NextG is purely a marketing term that Telstra use to market their product.

      If you want to get technical, they run a UTMS network operating at the frequency of 850mhz and in some places 2100mhz where extra capacity is required. This network supports many protocols such as W-CDMA, HSDPA, HSUPA, HSPA, HSPA+ & DC-HSPA+.
      They also operate an E-UTRA network operating at the frequency of 1800mhz. This network currently supports LTE.

      Because these names can be very hard to manage, they make it very simple. Telstra's product that offers access to all of the 850mhz & 2100mhz group of protocols is marketed as "NextG". Telstra's product that offers access to the 1800mhz E-UTRA network, in addition to the 850mhz & 2100mhz network is marketed as "4G". "4G" also includes "NextG" access so there is some cross-branding involved.

      At one point the 3GIS owned 2100mhz W-CDMA network was considered part of the "NextG" product that also covers the 100% Telstra owned 850mhz and 2100mhz networks, but this only applies to Telstra customers, as "NextG" is a Telstra-specific marketing term. Three Mobile (who also had access to 3GIS owned 2100mhz network) would not have been allowed to use the term "NextG" because Telstra owns the rights to that term (it is actually a registered trademark).

      "NextG" and "4G" are not tied to any specific technology. "NextG" can be whatever Telstra says that it is.Telstra can tie it to whatever they want it to.

      If Telstra decided to kill most of their 2100mhz W-CDMA network (eg: 3GIS) and have everything running mainly on their 850mhz W-CDMA network, they can do that, and it would still be "NextG". Conversely, if Telstra decided to kill 850mhz W-CDMA and have everything running mainly on 2100mhz W-CDMA , they could do this also and it would still be "NextG".

      In fact, Telstra own most of Hong Kong CSL, and launched a "NextG" branded network in Hong Kong, running purely on W-CDMA 2100mhz. So they have done it.

      It appears that the Telstra Wholesale product that Kogan is reselling is not "NextG", not only because Telstra has not granted Kogan a license to this term, but also it does not match the "NextG" product that Telstra are selling themselves. The "NextG" product that Telstra retail/business sell includes full access to all of the protocols running on the 850mhz W-CDMA network. The Telstra Wholesale product only includes access to W-CDMA 850mhz, not all of the cell sites (It looks similar to Three's "Roaming zone"), and not all of the protocols (It appears to be only HSDPA, and this is why it is limited to a theoretical 7.2Mbps) and thus a new name is required. "3G" seems appropriate, considering that W-CDMA HSDPA is the most basic version of "3G", and this protocol was marketed by Telstra as "3G" themselves prior to the introduction of the "NextG" brand which took over the marketing of this protocol for their own products.

      It would be correct if you said that Kogan 3G using "some of the same 850mhz W-CDMA HSDPA network sites" as Telstra "NextG", but Telstra "NextG" offers much more than this as well. More sites, more protocols, more bands/channels which leads to more coverage and more speed.

      So don't say that it's "NextG" because it's not. You are trying to look smart but you aren't even close.

        Argue semantics all you want. The fact of the matter is Telstra's 3G offering falls under Next G, and it is common knowledge that Telstra only wholesales 3G. The reporter writing the article as if it's surprising that Telstra aren't wholesaling their best network offering (which they don't wholesale) to Kogan (a budget provider) is at best very puzzling.

        Side note: "NextG is purely a marketing term that Telstra use to market their product."
        So is 3G.

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