Kogan.com is finally making its entry into the National Broadband Network, with the online retailer’s telecommunications arm to offer fixed broadband services from next year.
The NBN offer comes into play courtesy of an ongoing services partnership with Vodafone Hutchison Australia, which has been extended until 2022. The partnership will see Kogan.com offer fixed-line NBN services in 2018 as well as mobile broadband plans.
“These agreements broaden and deepen the successful partnership between Kogan.com and Vodafone, who have been collaborating on Kogan Mobile since 2015,” the company said.
The online retailer had a somewhat problematic entry into the telecom space in 2013, with a deal with wholesaler ispONE, which resold Telstra’s 3G network, coming to grief. The wholesaler’s collapse in August 2013 saw the Telstra prepaid mobile contract terminated with almost 12,000 Kogan customers disconnected.
The 2015 deal with Vodafone deal resuscitated the mobile service, which is starting deliver returns to Kogan.com’s overall books.
According to the company, in the six months ended December 31 2017, Kogan Mobile contributed 4.2 per cent of Kogan.com’s gross profit. Kogan Mobile’s gross profit for the third quarter of 2017 increased 50 per cent on the previous quarter, highlighting an uptick in market share.
The contract extension will see Kogan.com continue to provide branding and marketing services for mobile plans, and start offering mobile broadband plans and NBN plans on the Vodafone fixed-line NBN network.
Vodafone will provide network and customer service support and will also provide marketing incentives for the launch of the Kogan fixed-line services.
Plan details of the fixed-line NBN services will be released closer to the launch date.
Kogan.com executive director David Schafer said that the launch of NBN services is a major opportunity for the company.
“With a brand that has built a reputation for price leadership through digital efficiency, a huge online audience and a data driven and analytical culture, Kogan.com is well poised to offer and grow a market leading NBN service,” he said.
“With low prices, and an easy-to-use online platform, switching to Kogan Mobile is simple. Vodafone continues to invest heavily in its network — meaning it is faster and broader than ever, and improving every day.”
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