Woolworths joins hands with Optus to enter telco market

Australia's supermarket giant, Woolworths, has announced its plans to diversify into the mobile telephony market, piggybacking Singapore Telecommunications Ltd owned Optus, by offering a no-frills mobile phone service.

Under the plans announced, Woolworths will team with Optus in a pre-paid service that offers a flat rate for voice calls of 15 cents flagfall and 15 cents for every 30 seconds of conversation.

The rate applies to both mobile and fixed-line calls. Text messages will cost 15 cents.

Woolworths business manager Alex Cochran said customers had told the company the number of plans, caps and bonuses in the market currently was confusing.

"What they really want is clear and transparent pricing and everyday value,'' Cochran said.

Woolworths will sell their own branded SIM cards for $2 via their Woolworths, Safeway, BIG W and Dick Smith stores.