Kogan tries to shake up mobile market

Online retailer Ruslan Kogan. Picture: Stuart Mcevoy Source: The Australian

Ruslan Kogan says entering the mobile market is a "natural progression" for Kogan.com. Picture: news.com.au Source: news.com.au

• Ruslan Kogan says mobile market is "ripe for disruption"
• Prepaid sim includes unlimited calls, SMS and 6GB data
• Kogan Mobile will run on part of the Telstra network

KOGAN is trying to shake up the Australian mobile market, which it says is "ripe for disruption", with the launch of a prepaid service.

Kogan Mobile will go on sale tomorrow and will be the first mobile provider to use part of Telstra's mobile network for prepaid services.

The service will include unlimited calls, SMS, MMS and 6GB of data per month.

It will cost $29 for 30 days access, $79 for 90 days access and $299 for 365 days access.

Kogan.com founder Ruslan Kogan said entering the mobile provider market was a "no brainer".

"We sell thousands of phones and tablets every day and every 3G device requires a mobile network provider," Mr Kogan said.

"It's just a natural progression of our business."

Mr Kogan added that the Australian mobile market was "ripe for disruption".

"Providers are taking customers for granted and confusing the s--- out of customers," he said.

"Things like $49 for $500 worth of calls - what does that even mean?"

Telstra spokesman Scott Whiffin said it was not in any direct relationship with Kogan.

He said the Kogan Mobile service would run via a Telstra wholesale customer, which was different to Telstra's NextG mobile service.

Mr Kogan confirmed this with news.com.au but would not say which retailer he had partnered with for the service.

"The way [Telstra] works, they don't deal with the retailer directly, there is a company we have partnered with," he said.

"We're definitely on the Telstra network … the service is using part of the Telstra network which we're really excited about."

Mr Kogan said his team had been working on the partnership "tirelessly for a number of months."

"It's been a discussion that's been taking place for quite a while," he said.

"When you're dealing with big companies they want to see numbers, that you have huge traffic to your website and huge volume."

Every phone and tablet sold on Kogan from tomorrow will include a Kogan Mobile starter pack, which has 100 minutes of free calls, 100 free texts and 100 megabytes of data.

Kogan will also launch an app for iOS and Android where customers can check their usage, extend their access plan and manage their accounts.

Kogan Mobile will provide a 3G coverage footprint of 97 per cent of the Australian population, covering more than 960,000 square kilometres.

It will have a peak network download speed of 7.2Mbps and upload speed of 300kbps-1Mbps.

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