Woolies phone for loyalty

WOOLWORTHS is pursuing new revenue streams outside its supermarket base forging a deal with telecommunications company Optus to sell a no-frills mobile phone service.

By InvestSMART · 4 Aug 2009

By InvestSMART ·
4 Aug 2009

WOOLWORTHS is pursuing new revenue streams outside its supermarket base forging a deal with telecommunications company Optus to sell a no-frills mobile phone service.

The deal comes shortly after the supermarket group unveiled its Qantas Frequent Flyer points program through its Everyday Rewards customer loyalty program and continues to duel with rival Coles over petrol discounting schemes.

Woolworths said yesterday it had signed a Mobile Virtual Network Operator (MVNO) agreement with Optus, representing the first agreement of its type for a retailer in Australia. It will be a pre-paid service called Woolworths Everyday Mobile.

The service will offer a flat rate for voice calls of 15? flagfall and 15? for every 30 seconds of conversation. The rate applies to both mobile and fixed-line calls, while text messages will cost 15?.

The value of the agreement was not disclosed, nor were the companies' customer and revenue targets for the new sales relationship. Woolworths shares closed down 45?, or 1.7 per cent, at $26.80.

-- ELI GREENBLAT