Woolworths Launch Mobile Phone Service

Woolworth's Australian Mobile Phone Network

Woolworth are going to become Australia's latest mobile phone provider with the launch of their own no frills pre-paid mobile phone service.

Unlke Telstra, Woolworth's are not going to have to build their own infrastructure. The supermarket chain will just piggy bank on Optus's mobile own infrastructure as an MVNO (mobile virtual network operator)(Kind of like how Tesco mobile piggy back on the O2 infrastructure).

The Australian First reported the new Woolworth's offering were expected to enter the highly competitive mobile phone market at the end of last year but but problems integrating Woolworth's backoffice IT systems with Optus resulted in a 9 month delay.

The Woolworth's pre-paid mobile phone service will be available across Woolworth's retail outlets under the Woolworth's Everyday Mobile brand and SIM cards will be sold for $2 at Woolworth's, Safeway, BIG W and Dick Smith stores. Customers will be offered a flat rate for voice calls of 15 cents flag fall and 15 cents for every 30 seconds of conversation. Text messages will cost 15 cents.

Customers can recharge accounts by buying credit at Woolworth's stores and outlets including Dan Murphy's, BWS and participating Caltex Woolworth's fuel outlets. Woolworth's said more than 21 million pre-paid mobile recharge transactions are processed through its 3000 stores each year. Richard Umbers, general manager of customer engagement at Woolworth's, said its retail stores have extensive experience in the mobile phone sales and recharge markets.

Mr Umbers said. "Our stores are already a destination for pre-paid mobile users. We also have a well established distribution network of more than 3,000 stores throughout Australia,"

The Woolworth's "MVNO" plan looks very familiar to the 2003 move by giant British supermarket chain Tesco that has resulted in it accumulating more than 2 million subscribers to its service.