Optus ends Woolworths Mobile contract

Optus is terminating its agreement with Woolworths Mobile, with Woolworths Mobile sims to cease being sold from 1 October.

Existing Woolworths Mobile customers will be able to stay with the MVNO for another 12 months. Following this, Woolworths Mobile customers will be able to stay on the Optus network by purchasing recharge vouchers with the telco.

Woolworths Mobile was offering two prepaid plans – a $29 plan for $500 value and a $49 plan for $1000 value.

Report: MVNOs seek to differentiate, but not all will survive: analyst

Late last year, Optus also cancelled its retail distribution agreement with TeleChoice, which includes Virgin Mobile and Pre-Paid Services, as part of a decision to rationalise its third party distribution channels.

Optus also ended a 12-year agreement with Boost Mobile, which now sells services on the Telstra network.

The announcement comes after the collapse of Kogan Mobile following the termination of the agreement between Telstra and ispONE, which resold Telstra's services to Kogan Mobile.

“What [we’re seeing] is the first wave of consolidation in the crowded market and what’s really happening is that players with unsustainable business models or margins are exiting the market,” Rolf Hansen, CEO at MVNO Amaysim, recently told Computerworld Australia.

Copyright © 2013 IDG Communications, Inc.

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