Woolworths entry into prepaid mobile could shake up the industry

Stuart Corner
Monday, 03 August 2009 12:03

Business IT - Technology

So does this mean that all the major telcos have got it wrong? During the press conference to announce the deal, Woolworths executives stressed repeatedly that the product had been shaped to appeal to the widest possible cross section of its customer base and how current offerings are too complicated and confusing. However the head of Optus Wholesale and Satellite, Vicki Brady disagreed.

The deal won't immediately mean that Woolworths will cease selling its existing range of prepaid other branded offering, but the company's general manager of customer engagement, Richard Umbers, made it clear that there would likely be some rationalisation of choices based on market demand - just as Woolworths own brands compete with those of all its other suppliers for limited space on supermarket shelves.

This offering, everyday Mobile is very much Woolworths first foray into mobiles. If it is successful there is every reason to believe that it will evolve, possibly into a contract postpaid offering, into mobile data and beyond.

Also, the prepaid mobile user base represents a readily available channel through which Woolworths can communicate with it to sell other goods and services, engender customer loyalty or gather feedback. Rewards of free calls are easy to deliver, and likely to be very much appreciated by budget conscious customers.