Wednesday, 07 June 2017 10:53

Kogan, Vodafone set to tackle broadband market with NBN fixed-line deal Featured

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Kogan, Vodafone set to tackle broadband market with NBN fixed-line deal Image courtesy of Stuart Miles at FreeDigitalPhotos.net

Online discounter Kogan is branching out further from its delivery of mobile phone services to offer fixed-line NBN services in 2018 in a deal with partner company Vodafone Hutchison Australia.

In an extension of its partnership with VHA, Kogan will continue providing branding and marketing services for mobile plans, but has signed new agreements to commence offering mobile and fixed broadband plans and NBN plans on the Vodafone fixed-line NBN network.

The new agreements will extend the Kogan.com and VHA partnership across both mobile and fixed-line services for an additional four years to 2022, with rolling two-year extensions after that.

Under the agreement, VHA will provide network and customer service support and marketing incentives for the launch of the Kogan fixed-line services.

David Shafer, executive director of Kogan.com, says plan details of the fixed-line NBN services to be offered in 2018 will be released closer to the launch date.

He says the agreements will also enhance the economics of the Kogan Mobile partnership for Kogan.com and “broaden and deepen" the successful partnership between Kogan.com and VHA.

He says both Kogan and VHA will have significant incentives to continue the partnership at the end of the initial term of the new agreements, and at each extension.

The two companies have been collaborating on Kogan Mobile since 2015 and Shafer says the mobile division is a fast growing business unit for Kogan.com, “leveraging the strength of the Kogan brand and its active and highly engaged audience”.

According to Shafer, in the six months ending 31 December 2016 (1H17), Kogan Mobile contributed 4.2% of Kogan.com’s gross profit – and in 3Q17, Kogan Mobile’s gross profit increased 50% on the previous quarter, continuing its strong trajectory.

He says the proof of Kogan Mobile’s success is in the uptake.

“We are proud of the partnership between Kogan.com and Vodafone which represents the coming together of two challenger brands to deliver value and choice for consumers,” Shafer said.

“Kogan Mobile has delivered on its promise to save Aussies money, with tens of thousands of customers already making the switch. With low prices, and an easy-to-use online platform, switching to Kogan.”

Shafer says mobile is simple. “Vodafone continues to invest heavily in its network – meaning it is faster and broader than ever, and improving every day.

"We’re thrilled to now extend our partnership with Vodafone to enable Kogan.com to offer great new services in mobile broadband and fixed-line NBN at the incredibly low prices that Aussies have come to expect from Kogan.com. Vodafone has been investing heavily to establish its own NBN infrastructure, and is set to roll-out its capability over the coming year.”

According to Shafer, the launch of NBN services is a major opportunity for Kogan.com.

“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. Most importantly, we will be offering extremely competitive plans that save Aussies more of their hard-earned money.”

VHA consumer business director Ben McIntosh says the partnership with Vodafone would deliver “even greater competition in the Australian market”.

“Since 2015, the VHA network has been powering Kogan Mobile to offer more choice to Australian mobile customers. It’s been a win-win-win for consumers, VHA and for Kogan.

“Given the success of our partnership to date, it makes sense that we extend our agreement, and also to add mobile broadband and fixed broadband services to the mix.”

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