Woosh in administration; Vodafone NZ facing court case

26 May 2016

New Zealand wireless broadband operator Woosh Wireless has gone into voluntary administration. Woosh was founded in 1999 and was acquired by California-based Craig Wireless for USD5 million in 2011. It won the rights to several packets of wireless broadband spectrum, but much of this was recently sold off to Spark (formerly Telecom New Zealand). Meanwhile, Woosh’s fixed line operations were offloaded to rival ISP Slingshot. Neale Jackson, a partner at administrator KordaMentha is quoted by the New Zealand Herald as saying: ‘Woosh hasn’t been trading profitably for some time and there have been some service issues for its 2,000 customers. We are also mindful of the customers who rely on Woosh Wireless for their landline and broadband services, particularly those in remote parts of New Zealand.’

Meanwhile, New Zealand’s Commerce Commission has filed court proceedings against mobile operator Vodafone New Zealand alleging it breached the Fair Trading Act by making false price representations. The proceedings relate to invoices sent to customers who signed on to the ‘Red Essentials’ mobile phone plan between January and December 2014. The Commission says Vodafone reduced the price of the plan from NZD79 (USD53.65) to NZD69 in January 2014, but did not apply the new price for around 15,000 customers. Affected customers were overcharged just over NZD90,000, though Vodafone has now offered refunds to 98% of those users.

New Zealand, Vodafone New Zealand, Woosh Wireless