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Kogan Mobile Pricing Changes August 2013

Posted on the 24 July 2013 by Prepaidplans @prepaidplans

ZDNet this week reported that Kogan Mobile had informed customers that it would be making further changes to its Acceptable Use policy and that these changes would apply to new subscribers from March 2013 onwards. The changes where subtle and somewhat technical in nature and I am sure most users would have no idea what they really mean nor even if it affects them.

Although victorious in the courts, Kogan Mobile appears to be refining its acceptable use policy even farther. Last week, the company began informing customers that from August 1, customers who signed up after March 22, or have topped up their service after that date even through auto-recharge services, will be subject to a new policy.

This policy includes many of the same restrictions around data usage, but also classifies maintaining a continuous packet data session for 12 hours or more on a single day on two or more days in a three-day period as unreasonable use for the service.

The change in policy has caused concern on broadband forum Whirlpool, with suggestions that users could get caught by the 12-hour packet data session clause just through regular use of their smartphone.

The acceptable use policy states that customers who have breached the policy can have their service suspended, limited, or terminated.

What the article also reiterates is what was clearly published by Kogan Mobile on their website that the launch offer was just that, a one time (6+ months) special introductory offer and that in time pricing would change and mostly become more expensive.

These changes are due in August sometime. No doubt the volume of users is in Kogan Mobile’s corner but with such volumes also comes the need for greater support numbers or eventually the natural churn will begin.

It is a wonder that Kogan has been able to sustain this pricing for so long, but when you can also sell customers phones and other gadgets/devices, making money from the plan sale is not your primary concern. I guess this is where the likes of Red Bull Mobile fell over, being undercut by Kogan (at their own unlimited game) and being stuck on the Vodafone network whilst it was being repaired did not help them. Without a secondary revenue source, they had little alternatives but to keep waiting. Maybe these pricing changes will see a leveller in the pricing landscape and even allow the likes of Amaysim to take a breath again, as I expect that they would also be hurting.

If you have ever tried the Kogan Mobile service, you will have experienced the promotional emails that come with it (and can be turned off) about their many other goods for sale. The model works and maybe others need to look into it rather than relying on just plans sales as their only revenue stream.


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