Optus has confirmed that it will be phasing out its Virgin Mobile Australia subsidiary over the next two years.
ZDNet understands that Virgin Mobile employees will be impacted as sales and marketing is consolidated under the Optus brand, with 200 staffers affected.
“For Virgin Mobile employees, our policy is always to talk to those who may be impacted by these changes first. Any potential options for redeployment within the wider Optus business will be discussed with affected individuals at that time,” an Optus spokesperson said in a statement.
“Virgin Mobile customers can continue to use their service in the same way they always have. We will be contacting them in the coming days to let them know more about the changes and their future options.”
Virgin Mobile has been continually losing market share, according to Kantar, with the market research company in November reporting the telco had lost 0.4 percentage points down to holding just 4 percent of the total Australian mobile market.
Optus has been forced by the Federal Court to pay AU$1.5 million in penalties after misleading its customers about switching over to NBN’s HFC network.
Optus argued in court that consumers could assume Telstra’s ‘unlimited’ mobile network ads refer to unlimited network coverage and unthrottled data speeds; Telstra argued the industry is ‘awash’ with unlimited advertising.
Optus now has 453,000 NBN customers and more than 10 million mobile subscribers, with CEO Allen Lew telling ZDNet that the telco is also examining the 3.6GHz spectrum band for possible 5G use.
Telstra has gained an interlocutory injunction against Optus’ potentially misleading ads that claim it operates Australia’s best mobile network.
The newest MVNO on the block in Australia will be wholesaling Optus’ mobile network.