Telstra prepared to cut off 280,000 mobile customers

Telstra’s (ASX: TLS) patience with Melbourne-based mobile reseller ispONE has worn thin. According to the telecommunications giant ispONE has fallen behind on payments which would allow them to cut off services to some 280,000 customers.

The customers are part of a low-cost mobile plan offering available from Aldi supermarkets and online store Kogan. However, even Kogan has had issues with ispONE and it successfully sued the reseller after it blocked 800 users of the mobile service.

According to The Financial Review on the other side of the story ispONE believes that Telstra was incorrectly charging them for data. Telstra has said it has “given them every opportunity to develop a repayment plan”.

Federal Court Justice Tony Pagone ordered ispONE pay $300,000 to the court as insurance and has stopped Telstra from making changes to the contract until 4:15 pm today, until mediation talks have taken place.

Telstra would have been hoping for a smoother end to the eight-year contract particularly given the ACCC’s decision to reject its takeover of South Australia’s Adam Internet last month. Telstra has been hoping to create a low-cost carrier for its services, similar to the Jetstar-Qantas relationship, a move aimed at increasing its market share.

Interested in our #1 dividend-paying stock? Discover The Motley Fool’s favourite income idea for 2013-2014 in our brand-new, FREE research report, including a full investment analysis! Simply click here for your FREE copy of “The Motley Fool’s Top Dividend Stock for 2013-2014.”

More reading

Motley Fool contributor Owen Raszkiewicz does not have a financial interest in any of the mentioned companies.  

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.