Up to 50 jobs could be at risk after the Melbourne-based mobile phone and internet service provider ispONE collapsed with debts of about $30 million.

The company resells Telstra services to retailers, including Kogan Mobile, which has 120,000 customers.

It has been been placed into voluntary administration and creditors are set to meet next week.

The administrator, Ferrier Hodgson, says negotiations are underway for the sale of parts of the company.

Kogan Mobile prepaid users will receive a text from Telstra informing them services are no longer supported, and they will use interim Telstra services.

The 130,000 remaining ispONE users, part of the Medion network sold through Aldi, narrowly avoided the same fate under a deal with Telstra.

For the Kogan users, the contract termination means they cannot recharge their phone and any existing data, call and 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 on its website.

Telstra said it was also progressively moving Kogan customers to a limited 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."

Kogan customers will need to transfer their mobile number to another provider - a process known as porting - but given the large volume of people transferring, there are expected to be delays.

Telstra has urged Kogan users to be patient.

"There are limits on how many ports the industry can process in addition to normal sales and activation activity," the statement said.

In a statement to the ABC, Kogan said it had been in regular communication with its customers.

A spokesman said founder Ruslan Kogan was disappointed with the situation. 

 

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