Optus is pulling the plug on Virgin Mobile, leaving more than one million customers of the failing network asking questions.
The telecommunications giant confirmed the shut down, and the closure of all 36 Virgin Australia stores, on Wednesday after weeks of speculation.
The move will leave more than one million customers who use Virgin Mobile in the dark.
End of an era: Optus is pulling the plug on Virgin Mobile leaving more than one million customers of the failing network asking questions
But Optus assured the closure would not affect Virgin Mobile customers.
The telco said it would personally call each one of Virgin’s customers to discuss their options.
The company will hope to switch them across to Optus but said the decision will not be forced.
The shut down will also leave 200 jobs on the chopping block but Optus is expected to reassign at least some staff to their shops.
‘Virgin Mobile customers can continue to use their service in the same way they always have,’ Optus said in a statement.
‘We will be contacting them in the coming days to let them know more about the changes and their future options.’
The move comes after Optus was fined $1.5million for pressuring customers to move to the National Broadband Network to make more money.
Optus (Sydney store pictured) has been slammed with a $1.5 million fine for lying to 14,000 customers by telling them they’d have their internet cut off if they didn’t upgrade to the NBN
The Federal Court ordered the telecommunications giant to pay up after it misled customers to believe they needed to sign up to Optus’ NBN services when they could have chosen any internet service provider.
Optus benefited by about $750,000 as a result, the Australian Competition and Consumer Commission (ACCC) announced on Wednesday.
Optus also incorrectly told 14,000 of its customers their services would be disconnected in 30 days if they did not upgrade to the NBN.
‘Businesses should not make false representations which distort customers’ decision making. This is particularly important when many Australians are moving to the NBN for the first time,’ ACCC Chairman Rod Sims said.
‘It is illegal for businesses to mislead their customers and create a false impression through their communications.’
Mr Sims said the $1.5 million penalty ‘serves as a warning to all businesses that such behaviour will be met with ACCC action’.
The shut down will also leave 200 Virgin Mobile jobs on the chopping block but Optus is expected to reassign at least some staff to their shops
An NBN Co. technician handles hardware in a fiber distribution cabinet during the installation of fiber-to-the-building connections in Sydney
Since an investigation was launched, Optus has paid $833,000 in compensation to customers whose services were disconnected.
The $1.5 million decision comes just months after the ACCC launched proceedings against Optus, Australia’s third largest provider of NBN internet services, in December 2017.
Virgin Mobile Australia was set up as a 50-50 venture by Optus and Virgin Mobile UK in 2000.
Virgin Mobile UK owned 75 per cent of the brand in 2002 but was bought out by Optus in 2006.
Optus has been owned by Singapore Telecommunications since 2001.