OzEmail fishes for Froggy customers - News - Business

To print: Select File and then Print from your browser's menu

--------------------------------------------------------------
This story was printed from ZDNet Australia.
--------------------------------------------------------------

OzEmail fishes for Froggy customers

By James Pearce, ZDNet Australia
January 23, 2002
URL: http://www.zdnet.com.au/news/business/soa/OzEmail-fishes-for-Froggy-customers/0,139023166,120263089,00.htm

After becoming frustrated by an ongoing liquidation process, OzEmail has announced an aggressive strategy targeting customers of Froggy ISP.

Industry pundits point out that the drawn-out process associated with the demise of the Froggy empire will eventually wear out the company's customer base, leaving little but an office shell to tempt potential buyers. OzEmail have decided to cut out the middleman and woo Froggy customers directly.

Froggy has offered discount Internet access, with unlimited hours for AU$19.95. A similar service on OzEmail costs $24.95, with download restrictions. However, OzEmail have waived the standard registration fees, as well as offering three months free Internet access. The company considers this package to be 'exceptionally competitive'.

The Internet campaign will be supported by ads along the Eastern seaboard, including newspapers ads in Sydney, Melbourne and Brisbane. The future of the Froggy ISP has been under doubt ever since Karl Suleman Enterprises was placed into voluntary administration last November, when ASIC uncovered a complex unregistered investment scheme. Roughly $3 million is thought to have been loaned to Froggy ISP through a complex system of inter-business loans Suleman allegedly used sustain both his companies and his lavish lifestyle.

The noose tightened on Wednesday 16 January when Froggy Mobiles was liquidated, but so far the company's ISP arm has continued to operate, with ASIC refusing to comment on how much longer its investigations into the company will continue.

"Our enquiries into Froggy are continuing, there's really nothing else I can say," said Felicity Glennie-Holmes, a media spokesperson for ASIC.

While the future of the company remains in doubt, Froggy's customer base remains a tempting morsel in a competitive industry. iPrimus is looking at making a deal with Froggy, but nothing has been confirmed.

"Primus is still very keen if we can come to some common middle ground," Confirmed iPrimus spokesperson George Hazim.