woolies dumping telstra

Woolworths drops Telstra as telecoms, internet service provider

WOOLWORTHS has confirmed it will end a $300 million exclusive deal with Telstra for telecommunications and internet services.

The overhaul covers telecoms and data services for the retailer's food and grocery, liquor, petrol, general merchandise and consumer electronics operations.

Following a year-long review, Woolworths decided to seek individual suppliers for its communications needs, such as fixed-voice, data, mobile telephony, networking and internet.

Tenders for the services had closed and successful respondents would be announced in coming months, the company said.

Optus could be a frontrunner for myriad services. The telco already supplies infrastructure for the Woolworths-branded no-frills mobile phone offering, Woolworths Everyday Mobile.

Dimension Data has been awarded a five-year contract as integration services manager to facilitate the transition to the new regime. The value of the deal was not disclosed.



"The enterprise telecommunications market is changing rapidly and it is important to look at specialist players . . . with specific expertise and points of difference," Woolworths chief information officer Dan Beecham said.

It is understood the retail giant expects to save tens of millions of dollars by breaking up with Telstra -- a relationship that began almost seven years ago.

"Woolworths currently uses one provider for telecommunications services across the whole business. As a result of the review, we will take a flexible approach to telecommunications procurement, establishing a framework that encompasses a range of services modules," Mr Beecham said.

"This approach will enable us to better leverage Woolworths' internal capabilities and combine them with the expertise of individual service providers. It will also provide us with greater scalability of services and deliver cost savings for our business."

The appointment of Dimension Data followed an extensive request for proposals.

"Dimension Data's remit will cover governance, contract management and relationship management, architecture and technical leadership, account management, transition, and service delivery management," Mr Beecham said.

http://www.theaustralian.com.au/business/woolworths-drops-telstra-as-telecoms-internet-service-provider/story-e6frg8zx-1225851585090