Kogan hones in on NBN market through Vodafone deal

Extends carrier agreement and extends into fixed line

Ruslan Kogan - Founder and CEO, Kogan.com

Ruslan Kogan - Founder and CEO, Kogan.com

Online retailer, Kogan, is making a play in the increasingly saturated Internet service provider (ISP) market following a new deal with Vodafone Hutchison Australia.

Kogan said the deal will see it offering fixed-line National Broadband Network (NBN) in 2018 in addition to mobile and mobile broadband services.

The company signed an agreement with the telco in 2015 to re-enter the mobile market, following an unsuccessful attempt to break into the market in 2012.

After launching mobile offerings in December 2012, the company was forced to close down nine months after the collapse of its wholesale provider, ispONE.

The new agreements will also enhance the economics of the Kogan Mobile partnership for Kogan.com, the company said in a statement to shareholders.

Kogan Mobile is the profitability poster child for the greater business delivering stronger growth than expected in the company’s recent full-year results. The division achieved 78.6 per cent of its full year FY17 prospectus forecast gross within the first half of the financial year.

In the six months ended 31 December 2017, Kogan Mobile contributed 4.2 per cent of Kogan.com’s gross profit.

The agreements tie the two companies together with mobile and fixed line agreements which extend until 2022 and includes rolling two-year extensions.

Kogan Agora Lite smartphone
Kogan Agora Lite smartphone

Kogan said that it will continue to provide mobile plans on the Vodafone network and begin to offer mobile broadband plans and NBN plans on Vodafone’s fixed-line NBN network.

While the terms of the deal were not disclosed, it is a big boon for Vodafone as the first commercial agreement for the company since it announced its intention to enter the fixed-line broadband market in October 2016.

Vodafone consumer business director, Ben McIntosh said that given the success of the partnership to date, it made sense to extend the agreement and add in mobile broadband and fixed broadband.

The service will be delivered via the National Broadband Network (NBN) by the end of 2017, reflecting a timely and “natural progression” for the telco, Vodafone Hutchison Australia chief executive, Iñaki Berroeta, said at the time.

In May this year, the telco began reaching out to customers for expressions of interest. Vodafone general manager of fixed, Matthew Lobb, said at the time that the timeline for a late 2017 rollout was still on track and the expressions of interest will allow interested customers to be the first to know where and when Vodafone’s fixed broadband offer will be available ahead of the launch.

It is unclear whether these expressions of interest lead to the commercial partnership with Kogan or if such deals always formed a part of the company’s NBN strategy.

As part of its deal with Kogan, the telco has agreed to provide network and customer service support along with marketing incentives when Kogan launches its service.

Kogan executive director, David Schafer, described the launch of NBN services as a major opportunity for Kogan.com and said the partnership of the two “challenger brands” would deliver value and choice for consumers.

“Kogan Mobile has delivered on its promise to save Aussies money, with tens of thousands of customers already making the switch,” 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.”

“We are thrilled to extend our partnership with Vodafone to enable Kogan.com to offer great new services in mobile broadband and fixed-line NBN.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags fixed broadbandmobile broadbandkoganVodafoneKogan.comNBN

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.
Chris Player
Show Comments

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Matthew Stivala

HP OfficeJet 250 Mobile Printer

The HP OfficeJet 250 Mobile Printer is a great device that fits perfectly into my fast paced and mobile lifestyle. My first impression of the printer itself was how incredibly compact and sleek the device was.

Armand Abogado

HP OfficeJet 250 Mobile Printer

Wireless printing from my iPhone was also a handy feature, the whole experience was quick and seamless with no setup requirements - accessed through the default iOS printing menu options.

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?