Woolworths enters the telco arena

Woolworths Limited has just announced that it has joined forces with Optus to launch Woolworths Everyday Mobile, a new prepaid mobile service to offer consumers a simple and low-cost prepaid mobile phone service.

Both companies have signed a Mobile Virtual Network Operator agreement, where Woolworths will use the Optus mobile network for its new prepaid service.

Alex Cochran, business manager for Woolworths Everyday Mobile, commented that the venture was created due to a large amount of confusion in the market.

“Our customers have told us the amount of plans, caps and bonuses is confusing and what they really want is clear and transparent pricing and everyday value,” he said.

“Woolworths Everyday Mobile cuts through the confusion and offers call rates that are easy to understand. There are no unnecessary extras, no lock-in contracts and no hidden charges making it the perfect choice for people who just want a simple mobile solution.”

Woolworths Everyday Mobile will offer consumers a sim-only service for any unlocked mobile handset. It features a 100 day credit expiry period, 15 cents flagfall and 15 cents for 30 seconds and 15 cent text messages.

To get started customers can purchase a SIM card from Woolworths supermarkets, Big W and Dick Smith stores across Australia for $2. A variety of unlocked mobile handsets will also be available for purchase.

Recharges are then available for $20, $30 or $50. In addition to this, customers will also receive $10 off their first recharge until 30 September 2009 when purchased in the same transaction as and Everyday Mobile SIM card.

As an extra incentive to join up, Woolworths customers who use an Everyday Money credit card will be able to receive two points for every dollar spent an Everyday Mobile SIM card or recharge.

Everyday Rewards card holders who have their account linked with the Qantas Frequent Flyer program will also receive one point for every dollar spent above $30.

Richard Umbers, general manager of customer engagement at Woolworths, commented on the extensive experience the company already has in the mobile phone market.

“Our stores are already a destination for prepaid mobile users. We also have a well established distribution network of more than 3,000 stores throughout Australia,” he said.

“Our customer reach and retail experience put us in an ideal position to deliver an offer that will stand out in the market. We believe there is a clear gap in the market for a good value pre-paid mobile offer that is simple and easy to understand.”

According to the company, more than 21 million prepaid mobile recharge transactions are processed through stores within the Woolworths Limited group each year.

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