Woolworths introduces pre-paid mobile service

Supermarket group Woolworths has made a step into the mobile phone market, partnering with Optus to introduce a pre-paid mobile service.

The service, under the “Woolworths Everyday Mobile” brand, is targeted at inexperienced mobile users and the millions of costumers who purchase pre-paid recharge vouchers at Woolworths supermarkets.

The service will charge a 15 cent flagfall, and 15 cents for 30 seconds of call time along with 15 cents for standard text messages. The Everyday Mobile product is a SIM-only service, with SIM cards available at Woolworths Supermarkets, Big W and Dick Smith stores.

The SIM cards can be used in any unlocked handset, while Woolworths is offering a deal whereby customers can earn one Qantas Frequent Flyer point for every dollar spent above $30 in one transaction.

Both Woolworths and Optus have said the service will contain no hidden charges, no caps, no peak or off peak rates and no contracts that “lock-in” customers.

Richard Umbers, general manager of customer engagement at Woolworths said in a statement that the Woolworths’ Everyday Mobile offer would provide good value.

“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,” he said.

Vicki Brady, managing director of Optus wholesale and satellite, also said the product will help Optus control its share of the market.

“Optus recognises the opportunities non-telcos can bring to the market and is looking forward to a long and successful partnership with Australia’s number one retailer.”