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Optus announces it’s shutting down Virgin Mobile

By Marni Dixit May 24, 2018
Virgin Mobile

Thirty-six stores to shut. 

Optus has officially announced they are going to phase out the Virgin Mobile brand within the next two years.

Two hundred jobs are going to be cut and 36 Virgin stores will be shut by 2020. Optus added 384,000 new mobile subscribers for the year as of March 31, 2018. However, the telco's average revenue per user for the year has slipped from $46 to $44.

Optus boss Allen Lew spoke to The Australian last week and said they had to get their costs down to remain competitive. 

By shutting down Virgin Mobile, they Optus will remove the branding licence fee they pay to Virgin Mobile.

There will not be any disruption for Virgin Mobile customers with a spokesperson saying:

“We will be contacting them in the coming days to let them know more about the changes and their future options.”

The news comes as Optus was hit with a $1.5 million fine after pressuring customers to move to the NBN sooner than required. 

The telco is reportedly going to look into whether some staff members can be reassigned to Optus stores.

“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.”

Image: PHILIPPE HUGUEN/AFP/Getty Images