Woolworths to take on telcos with no-frills service

MELBOURNE - Australia's largest supermarket chain, Woolworths, has announced plans to enter the telecommunications market, offering a no-frills mobile phone service.

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

The rate applies to both mobile and fixed-line calls. Text messages will cost 15c. Woolworths business manager Alex Cochran said customers had told the company the number of plans, caps and bonuses in the market currently was confusing.

Woolworths will sell their own branded SIM cards for A$2 ($2.53) via their Woolworths, Safeway, BIG W and Dick Smith stores.

- AAP