Optus announces it is shutting down Virgin Mobile just hours after the company is slapped with a $1.5million fine for pressuring customers to move to NBN – leaving 200 employees out in the cold

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Virgin mobile is being shut down with 200 jobs on the chopping block.

Optus, which has owned the brand since 2006, confirmed the move today after weeks of speculation.

All 36 Virgin mobile stores will close with Optus expected to reassign at least some staff to their shops.

End of an era: Virgin mobile is being shut down with 200 jobs on the chopping block

The telco aims to switch its one million Virgin Mobile users to Optus - but customers can use Virgin as normal for now.

It said in a statement: 'Virgin Mobile customers can continue to use their service in the same way they always have. 

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

Optus was today fined $1.5million for pressuring customers to move to the National Broadband Network to make more money.

The Federal Court ordered the telecommunications giant to pay up after it misled customers to believe they needed to sign up to Optus' NBN services when they could have chosen any internet service provider.

Optus (Sydney store pictured) has been slammed with a $1.5 million fine for lying to 14,000 customers by telling them they'd have their internet cut off if they didn't upgrade to the NBN

Optus benefited by about $750,000 as a result, the Australian Competition and Consumer Commission (ACCC) announced on Wednesday. 

Optus also incorrectly told 14,000 of its customers their services would be disconnected in 30 days if they did not upgrade to the NBN.

'Businesses should not make false representations which distort customers' decision making. This is particularly important when many Australians are moving to the NBN for the first time,' ACCC Chairman Rod Sims said.

'It is illegal for businesses to mislead their customers and create a false impression through their communications.'

Mr Sims said the $1.5 million penalty 'serves as a warning to all businesses that such behaviour will be met with ACCC action'.

An NBN Co. technician handles hardware in a fiber distribution cabinet during the installation of fiber-to-the-building connections in Sydney

Since an investigation was launched, Optus has paid $833,000 in compensation to customers whose services were disconnected.

The $1.5 million decision comes just months after the ACCC launched proceedings against Optus, Australia's third largest provider of NBN internet services, in December 2017. 

Virgin Mobile was set up as a 50-50 venture by Optus and Virgin Mobile UK in 2000.

Virgin Mobile UK owned 75 per cent of the brand in 2002 but was bought out by Optus in 2006.

Optus has been owned by Singapore Telecommunications since 2001.