Wholesale mobile provider ispONE has been placed in administration, potentially affecting 120,000 Kogan mobile customers.

Melbourne-based ispONE, which provides telecommunications services to wholesale and retail phone and internet providers throughout Australia, voluntarily appointed Ferrier Hodgson as administrators.

The company provides prepaid mobile services for 250,000 mobile users through Aldi’s Medion brand and Kogan’s Kogan Mobile brand using Telstra’s network.

According to reports Aldi had secured a last minute deal with Telstra over the weekend, ensuring its pre-paid Medion members would not be cut off, however no such deal has been struck for Kogan.

For the Kogan users, the contract termination has now meant they will use interim Telstra services.

Telstra stated on its website users cannot recharge their Kogan Mobile prepaid phone, and any existing data, call, or text balances will expire in 30 days.

“You will not be able to recharge, so if you lose your outbound service, we advise you to transfer your service to another provider immediately,” Telstra said.

Telstra also advised customers on its website that it would be transferring users to a seven day plan.

“During the 7 Day Plan the service will be limited to 20 voice call minutes and 20 SMS messages to Australian numbers, while data services, international calls and MMS will be excluded,” it said in a statement.

“After the 7 Day Plan, and for a period of 6 months, the service will no longer be able to make calls, although it will still receive calls and you’ll be able to make emergency 000 calls.

“If the service has not ported out after the 6 month period, the service will be cancelled and the number placed in quarantine.”

Ferrier Hodgson said the 50,000 internet users whose services are provided via ispONE will not be affected.

A meeting of creditors will be held on August 29.