Woolworths returns to mobile telecom space

SUPRATIM ADHIKARI
MAY 28, 2015
The Australian
Woolworths is ready to return as a mobile virtual network operator (MVNO), with the retailer signing a wholesale supply agreement with Telstra.
The deal will see the retail giant initially utilise Telstra’s 3G network to provide mobile services, leveraging Telstra’s 850MHz and 2100MHz spectrum and the substantial reach of the telco’s 3G network footprint.
Woolworths’ previous play in the sector came undone in 2013, when its network operator agreement with Optus was decommissioned.
The retail giant said at the time that it was reassessing its presence in the sector.
Woolworths’ head of telco, Jason Hair, said that the partnership with Telstra was the first step in its plan to reinvigorate its telco offering.
“This relationship is the first step for Woolworths on the road to delivering a straightforward, high quality and value-driven service for our customers. We look forward to providing more details on our offer in the coming weeks,” Mr Hair said.
Telstra has been progressively opening up access to its 3G network as it continues to focus on 4G services.
Woolworths will now join Medion, the owner of Aldi Supermarkets and the Aldi Mobile product, as Telstra’s key wholesale customer.
LycaMobile, Telechoice and Think Mobile are other notable Telstra customers.
Telstra is planning to make its 4G mobile service open to wholesale access by June next year.
The 4G service will be available from Telstra Wholesale by June 2016, with Telstra Wholesale group executive, Stuart Lee saying in March that the telco’s MVNO customers were keen to get cracking on 4G services.
“Our 3G product continues to provide a high quality experience for end users but with mobile data use continuing to grow we know many of our mobile virtual network operator (MVNO) customers are keen to have the opportunity to offer 4G services on Australia’s leading mobile network,” Mr Lee said.