Melbourne-based unlimited NBN retail service provider Mungi has gone into voluntary administration just a year after it was created.
The company’s website was replaced with a message today that blamed “economic conditions” for the collapse.
However, in a Whirlpool post, Mungi attributed its collapse to an inability to achieve the scale required to compete in an NBN world.
That makes it the second RSP in a week to exit NBN citing small scale, following Amaysim’s surprise exit from the NBN business.
“We’ve tried our best to grow Mungi into a world-class ISP however we faced some hurdles which we’ve tried our best to overcome,” co-founder Jamie L. said.
“Offering NBN is incredibly difficult. There is a huge advantage for the larger players to remain large and only as NBN and the larger players squeeze the market further.
“We’ve always kept a lean operation, however we we’re just unable to compete and reach the same economy of scale.”
Jamie L. claimed that Mungi had been an acquisition target in the months leading up to its demise.
“Mungi was in the process of being acquired by a few other larger separate providers who would have allowed us to continue our journey,” he said.
“Both these providers saw a profitable customer base already. However, these negotiations fell through.”
Mungi was only set up in November last year. It was unclear how many customers were impacted by the sudden closure.
Aussie Broadband is among RSPs immediately offering switch deals for customers left stranded by the sudden closure.
