Woolworths is returning to the Australian mobile market thanks to a new MVNO deal with Telstra.
The retailer has not yet disclosed when it plans to launch services, but in a statement on Thursday its head of telco, Jason Hair, said it will provide more details in the coming weeks.
"This relationship is the first step for Woolworths on the road to delivering a straightforward, high quality and value-driven service for our customers," Hair said.
Australia has proved a tough market for MVNOs in recent years.
Kogan Mobile made headlines across the world when it closed its doors two years ago following the collapse of enabler partner ispONE, although Kogan blamed network operator Telstra for its demise.
Meanwhile, Woolworths itself has a failed MVN O behind it. The retailer brokered a wholesale deal with Optus in August 2009 that enabled it to start offering mobile services, but four years later the deal was off and in March 2014 Woolworths’ remaining customers were transitioned to Optus. There is still an announcement on the firm’s Website to that effect.
Woolworths clearly believes it still has something to offer to mobile users though and its network of supermarkets will certainly give it an advantage over many virtual players, presuming it chooses to leverage it.
"We know our customers want great value, simplicity and convenience on a trusted network," Hair said.
Meanwhile, Telstra Wholesale group executive Stuart Lee described the agreement with Woolworths as "an important development in the continued evolution of Telstra’s wholesale business."
Telstra said Woolworths will "initially" offer services using its 3G network, which will enable it reach 98.5% of the population using spectrum in the 850 MHz and 2.1 GHz bands.
The comment suggests that a 4G service could follow at a later date.
However, Telstra has come under fire recently for alleged anti-competitive practices regarding wholesale access to its 4G infrastructure.
The Australian last month claimed that the Australian Competition & Consumer Commission (ACCC) has been looking into Telstra’s conduct for some time following complaints that it has delayed offering wholesale access to its 4G networks and that that access, when it comes, will not be on equivalent terms.
