Kogan's beef with failed Telstra supplier ispONE finally comes to a close

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Kogan's beef with failed Telstra supplier ispONE finally comes to a close
Ruslan Kogan

Kogan has won its claim with liquidators Ferrier Hodgson, finally laying the controversy surrounding the demise of telecommunications distributor ispONE to rest.

Kogan advised shareholders today that Ferrier Hodgson had awarded Kogan $692,414 in its claim against ispONE, four years after the company was liquidated.

The company stated in its FY2016 results that it was still owed $293,320 from the claim. As a result, the difference of $399,094 will be added to Kogan's profit in its 2017 financial results.

The conflict dates back to 2013 when Kogan's telco business, Kogan Mobile, sold Telstra mobile services from ispONE as its distributor.

In April, ispONE blocked a subset of Kogan Mobile customers from its network due to 'high-usage'. As a result, Kogan took the supplier to court after it was forced to offer compensation to customers, accusing ispONE of breaching its agreement.

Kogan claimed victory and ispONE was ordered to pay for Kogan's court costs and incurred losses.

However, ispONE entered administration three months after the court case was settled, with tens of millions owing to both Kogan and Telstra and was subsequently liquidated.

Kogan said it had no choice but to close its mobile business because Telstra was not prepared to supply Kogan with mobile services.

The controversy was revived in 2015 when Kogan relaunched the mobile business with services on Vodafone's network. Telstra issued a statement, refuting Kogan's implication that the telco was responsible for Kogan Mobile's demise.

Former Telstra wholesale director Stuart Lee said the telco was prepared to make a direct deal with Kogan but could not come to an agreement. Lee also noted that Kogan's pre-paid mobile contract was cancelled by ispONE after Ferrier Hodgson took over.

Kogan claimed Telstra was not prepared to supply mobile services on commercial terms.

Kogan will release its results for the first half of the 2017 financial year on Thursday.

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