Phone Users Face Higher Prices as Kogan Mobile Collapses


By: Zain Nabi  |   August 25th, 2013   |   News

Kogan mobile has recently closed down its services in Australia after a major dispute with Telstra. Kogan mobile after Red Bull Mobile and Savvytel is the third lowest cost phone carrier to close this year. Even if a low-cost phone carrier remains open, consumers also closely examine the offers of others phone carriers in order to avoid bad service from these carriers, said industry analysts.

 

Kogan Mobile started its services in December last year. Their mission was to provide low-cost phone services to Australians and rescue them from mobile madness. They with Telstra 3G network launched unlimited plans for only $29 per month.

 

But soon they lost the Telstra connection because of raising the prices by 34% within just three days’ notice. The company will soon lose its Telstra connection as one of the providers because of the price increase. This act will end service to more than 120,000 users of Kogan mobile, they now have 30 days to find a new mobile phone carrier.

 

Similarly, Vodaphone withdrew its services due to which Red Bull Mobile will close down on September 1, and Savvytel has already ended its services in August. There are a number of companies in Australia that sell higher price carriers. Australian Communications Consumer Action Network chief executive Teresa Corbin said, companies that have larger network can now think to lower their prices so that mobile phone services can be used by everyone at an affordable rate.

 

Customers through low cost budget can get their mobile phones connected for “almost a third of the price, “she said, and the prices of the plans can be greatly affected due to reduction in that competition. “Generally, the more competition in the market, the better for customers,” Ms Corbin said.

 

“While some might argue that the Mobile Virtual Network Operators (MVNOs) have driven prices down to dangerous levels of the industry, for consumers it has resulted in most generous data allowances in lower prices.”

 

The 10 low cost mobile phone carriers in Australia are: Virgin Mobile, Amaysim, Dodo, Just Mobile, Woolworths Mobile, Boost Mobile, Fone Zone, iiNet Mobile, Think Mobile and TPG Mobile.

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