Kogan Mobile To Sue Its Wholesaler, ISPOne, Over 'Unlimited' Dramas

Kogan Mobile has had more than a few dramas with the word "unlimited" recently. After offering so-called "unlimited" plans to customers at launch, some have been left with a sour taste in their mouths after allegedly violating the company's Fair Play policy and being shoved off the network. Kogan Mobile blames its wholesale provider, ISPOne, for the dramas, and now it wants punitive relief: Kogan is taking ISPOne to the Supreme Court.

We can reveal this afternoon that Kogan Mobile has instituted legal proceedings against ISPOne in the Victorian Supreme Court, with hearings set to kick off tomorrow morning.

Negotiations between Kogan Mobile and ISPOne have reportedly broken down after ISPOne allegedly implemented a block on the usage of Kogan customers without the telco's permission.

Kogan wouldn't comment on the legal action to us this afternoon.

ISPOne resells Telstra's wholesale Next G network to the likes of Kogan Mobile.

We're seeking comment from the wholesaler about the legal action.



    We've been with this mob on access 365 since early Jan, I've now downloaded the call/data logs for each month. We actually only make and receive a few calls, so they win there. We've used 5GB of data most months, but have never actually maxxed it out on any. I got an email along with everyone else a couple of weeks ago. It stated that the new usage conditions didn't hit till April. I got the impression that it was for new recharges and not existing ones like those on pre-paid 90 or 365 like us. Even then there was a guideline saying if you use more than 400mb in any one day, three times a month or on two days consecutively, you can be suspended. Well I haven't done that certainly not in the month of April. ISPOne have not been nobbling Aldi mobile customers like this. The worst aspect of the block is the message callers get when they try ring you "This number has been disconnected", I wonder how many of my contacts think I don't pay my bills or have a different mobile number? I paid $300 for 365 day access and now the sims dead - Thanks kogan/ISPOne.

      You do get what you pay for

        He paid $300 and got nothing out of it, how is he getting what he paid for?

          If he got the kind of usage, i.e. Telstra network for 3 months using ~5GB per month, then he's gotten what Telstra would charge $400 for, and that's not knowing or accounting for what calls he used. That's why you get what you pay for. If you cobble yourself as a customer to companies like Aldi or Kogan who have had more than a handful of issues of unscrupulous behaviour, you must accept that there might be issues down the track. If it seems too good to be true, it probably is.

          In this case, it's because Kogan clearly didn't negotiate properly with ISPOne, who from the very name of them gives me a massive OneTel vibe anyway. Yes, it's also possibly that ISPOne has bitten off more than they could chew, but they should have forecast this issue, and so should Kogan have.

          I had the same situation I made a TIO complaint at http://www.tio.com.au - the ombudsman is all over this sh*t, like a fat kid on a mars bar

        How can you be so callous? This guy paid $300 upfront for mobile access. He paid good money and expects good service. At the very least, he expects a functioning mobile service. You cannot honestly be so daft as to suggest he received what he paid for.

          It is a saying guys, calm down. It basically means that regardless of how good a deal looks ultimately the service or product you receive will be equivalent to the price you paid.

          It is not meant as a justification for poor treatment but a reality of selling and buying.

          This is exactly what has happened and I would be contacting the relevant consumer body (in this case the TIO) and asking for a full or partial refund.

          Finally, keep in mind the adage "if it seems too good to be true..."

          I suspect we will hear more about ISPOne over the next 12 months.

            But "what you were paying for" was a cut down version of the telstra 3g network with no subsidised handset with unlimited calls and 5GB a month for 12 months. So no he did not get what he paid for. I worked for a small wholesale telco for a number of years and we always priced ourselves below the major carriers and never did this to any of our customers.

            So I guess if you buy a Hyundai and not a Bentley and it breaks down, hyundai say sorry you broke our fair use policy you don't get to drive your new car anymore that would be a case of you get what you pay for?

            Reduce cost sim only plans may not have all the frills of 4G and full telstra network, subsidised handsets etc. but they still have to offer what is advertised and its not a case of buyer beware. This is not some third world marketplace, this is Australia and we don't tolerate that sort of crap.

              It is a saying! Like "Always look on the bright side of life." That doesn't mean you ensure that you always face the sun.

              You are taking the comment too literally. "You get what you pay for" is a generalisation regarding the simple fact that the price of item is directly correlated to what you get regardless of the promises made in the sale.

              To use the analogy of Hyundai v Bentley. "You get what you pay for" is when someone sells you a Bentley for the cost of a Hyundai. It looks like a great deal, amazing car and a super cheap price. It then gets impounded because it is stolen which the seller didn't mention when you bought it.

              The comment isn't saying that this is right and the buyer should be blamed.

                I dont think this was sold as bently for the price of a hyundai, you knew going in that kogan wasnt offering the same service as telstra, e.g. 4g etc etc. I wouldnt say that it looked too good to be true, it was just a deal with pros and cons like any other. I mean TPG have been offering cheap deals on the Optus network and I know people that have been using them for years. Not too mention all the others that thousands of happy customers are getting cut price deals on Vaya, live connected, amaysim, redbull, Virgin to some extent.

                These customers aren't getting booted off the network, so are they getting more than what they paid for? lol

                  Ok. I'm officially giving up trying to explain the difference between literal and figurative language to you...

                  I understand the difference between literal and figurative. I just think in this case it's not apt and just a cop out.

                  A figurative saying that exactly relates to the experience is not "apt" in this case? Even though you accept that it is a figurative statement that describes the exact experience of the OP...

                  Look up eristic when you get a chance...

            That is actually rubbish. This isn't a question of anyone's opinion but one of contract and consumer law. At law the terms and conditions of a contract are determined at the time of signing, and any condition which says "we can change the terms whenever we want to whatever we want" are ignored in interpretation of that contract. There is specific consumer legislation governing the use of the word "unlimited" which Kogan is clearly in breach of. That is not my opinion, it's the law of the land.

            This is a simple question of what they promised, and what they delivered. I never would have switched if they didn't offer a better deal. Now they don't want to live up to that deal.

              Nobody is disputing the legality of the situation or rights under consumer law.

              I'm not going through the difference between figurative and literal language again. It is tiresome and I'm sorry you don't understand it.

    hahaha good luck with that russlan. Ispone was the most incompetent boobs i ever dealt with.
    when i worked in telco we had no access to any live system. to do a simple thing like a simcard swap required a spreadsheet to be emailed and actioned whenever they get to it.. get into bed with monkeys russlan....

    I have always had very positive experiences with my purchases from Kogan and I was surprised in the last few weeks when I saw these issues in the media and how they were handled - it was not inline with Kogan, what they stand for and how they treat their customers. It all makes sense now. Sounds like ispONE is very dodgy and hopefully Kogan can make them perform as they should. That said Kogan should still take responsibility for choosing ispONE (even if they are Telstra's only distributor of this service)

    More and More are using ispONE.. Telechoice, Aldi, Kogan... bit of a worry when they can change the terms and conditions at will... worrying

    Twice i have been told my 2gb of data is used up when both my data trackers say 230 & 160 mb was used. Anyone else got similar issues? it was always accurate on Telstra.

      Yes this happened to a friend of mine on the 2GB data plan. It also happened to me, we both believed we were well below our data limit. Something dodgey is happening here Mr Kogan?!?

      I was suspicious of the amount of data that I was supposed to be using on their data only plan. I installed a data tracker on my iPad and my actual use was much lower than Kogan claimed. I think it was around 1.7Gb when Kogan said I had used all my 2Gb allowance. There does appear to be something wrong with how they track data usage.

      I don't know how accurate Telstra was but it definitely felt like I was getting more usage from their 2Gb than from Kogan's.

      Unfortunately I can't find any information about how they charge for data. I know some charge in minimum blocks of 1mb, for example. So, download a small, text only, email and they will take 1mb off your allowance. Does anyone know how they charge or where to find this information?

      On another note: Kogan now limit users of its data plan to no more than 1 top-up recharge a month. So, the most you can have is 4Gb a month, for $20. But, subscribe to the $29.90 UNLIMITED plan and you get 6Gb, plus (limited) unlimited calls. Since I don't have a fixed line, and I use my iPad for study and job search, it seems that I'd be better off subscribing to their 6Gb for $29.90 plan even though I'm only using it for my iPad.

      Are you rounding up to the megabyte and not counting actual use? Remember Kogan charge in 1MB blocks.

    If a plan is unlimited how can a limit be placed on it? If you have a 6gig data plan attached, surely you should be able to use it how you like until you run out of Data, then it should be cut or slowed. I used 180 gig in 22days and got cut off with a message on the phone saying it was a maintenance issue. I still have 6 weeks to run with my prepaid and also a $15bolt on attached, all not being able to use. This suspension of an account could leave a person in a life threatening situation if you relied on your phone for a safety issue. It has severely effected my wife's life who uses her phone for this type of situation.
    Sue ispone, yes that needs to be done, also the AAAC and the telecommunication ombudsman needs to address the issue. It should be illegal to advertise... unlimited and then limit the use to .... daily (data 400Mb) and monthly use (2500 minutes per month ) and 100 SMS each day. Plus Data is rounded up to the nearest Mb even if you use only 1Kb .... then = 1Mb

    I feel another OneTel coming to many promises and no ability to back them up.......

    As a former Civil Draftsman I can tell you that shit flows downhill.

    Grogan is to blame here, NOT ISPOne. Upper management is always 99.9% to blame.

    Last edited 10/04/13 7:04 am

    My guess is that Telstra is putting pressure on ISPOne due to network strain, these Telstra whole sellers are pretty much killing it, in terms of sign ups, and it doesn't help when Telstra itself is gaining heaps of subs as well. Telstra's network is probably at its limit, and I doubt Telstra want to upgrade there old network, nor put any onto there new network they charge 4x the amount to use.

    im considering the switch to this...the price is good

    whats the speed like on 3G?

    I only use about a gig of data a month anyway

    He paid good money to an unproven service provider. One with a business model based on cutting corners e.g. cheap TVs, phones etc. Sounds risky? Is risky! Guess what? Risk realised.

    Going on today's court injunction the court has directed ispONE to stop suspending users for merely using the data they're entitled to use. I think I can see what's happened here. Kogan are an online merchant, so in order to obtain a simcard in the first instance you have to surf into their website to do it. That sets them apart from Aldi or Woolworths where the bulk of new subscribers source their simcard from a shop. People who buy in shops are imo more likely to be interested in the unlimited calls rather than 6GB data. But with Kogan they may have got a much higher proportion of subscribers who are less interested in the calls but are attracted to the 6GB data on the Telstra 3G Network. The result of which means there's more data being chewed by Kogan subscribers than perhaps ispONE had factored in.
    If you look at the data without calls it works out as little as $4.50 per GB on access 365. Data speeds are limited - never faster than 7.2mbps as compared to the main Telstra 3G network speed which can be anything up to 15mbps and where available 4G, with speeds already tested in excess of 50mbps. For this service we pay Telstra $60 p/mth for 8GB on contract plus USB modem. so we're looking at $7.50 as opposed to $4.50 if you're not taking advantage of the included calls. Kogan also do a bolt on sim, giving 2GB for $10. So you can see that Telstra are not hugely more and I haven't a clue where linc get's his information from to suggest that using 15GB of data from Telstra equates to $400, I get 16GB over 2 months from them for $120.
    For the others who are at a loss as to where there data goes, I assume they also monitor uploads as they're also counted.
    I bear not grudges with Kogan themselves, this looks to be the handiwork of ispONE clear and simple, I hope to be re-instated over next few days. It's interesting how you always get those who laugh when anyone falls over, I'm no financial mug as it happens. My wife and myself were able to pack in work at age 54 as self-funded retirees which just about explains how we approach finances. I have little doubt that we'll be able to claw back the unused part of our investment from Kogan if it comes to that.

    Update - service was resumed last night -Wednesday :o)

    Last edited 10/04/13 2:02 pm

    I've switched to KoganMobile from Amaysim because there was more data and it was $10 cheaper. They suspended me in the first week without any warning or explanation and without any possibility to talk to anyone at Kogan and there was no response to my emails. I didn't have any other phone.
    The next day I took my number back to Amaysim ... I suggest you do the same.
    I don't care if it was the reseller or any other third party ... Ultimately I was brutalised mistreated by Kogan.
    I won't deal with anything Kogan ever again.

    I havent been affected, received no emails and my service is top notch!! Kogan is awesome! I congratulate and support Kogan in eveyway possible. I have no doubt that Kogan kept their end of the bargain and would of followed the guidelines given to them via their partners in this business transaction. ISPone and Telstra, hope you both have the decency to honour your contracts with Kogan, cause they aren't there to profit like a money hungry animal, Kogan are there to keep things low while providing a service for those that search and find a great deal. Realize the potential and join the cause! And for those that say they will never go Kogan again, trust me when I say, if its not kogan today, it will be another company tomorrow, that may not be kogan, but have the same deal. It's only cause Kogan has gotten a lot of customers and are doing something that these bigger telcos couldn't do, cause their all rip offs!!

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