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Coles Dump Telstra for Optus-NBN Deal

The Australian supermarket chain Coles has decided to ditch Telstra for an Optus-NBN Co deal that will cover 2,400+ sites including its brick and mortar stores, distribution centres and store support centres.

On Friday, Coles announced the new “multi-year partnership”, however, Coles could switch providers at the end of the Optus deal without being disconnected from the NBN network, as NBN owns the fibre network.

The deal was described in the announcement as a “strategic alliance” aiming to deliver “high capacity fibre services across Coles’ retail, distribution and support centres nationally.”

Paul Tyler, NBN Co’s chief customer officer for business, stated, “This is a landmark deal for NBN Co and a significant proof point of the maturity of business NBN.”

NBN Co is currently working to increase its annual revenue from the business sector to $1 billion by 2022 through deals like this and the Woolworths-Telstra deal announced in January.

Coles also stated the new “strategic alliance” and infrastructure will allow the grocery giant to further its digital strategies and improve customers’ experiences.

“The increased speeds and capacity of this new network give us the flexibility to rapidly increase the speed at which our stores can access and transfer data,” Coles Chief Information and Digital Officer Roger Sniezek said.

“We are delighted to be partnering with Optus to leverage the speed, flexibility and agility of the new network, implement new digital initiatives, and ensure we are well-placed to take advantage of emerging technologies in coming years.”

In addition, Optus products will also be showing up in Coles stores and online, and flybuys members will have the opportunity to earn points via Optus offers.

The exact details of these are unclear, but the potential is there for mutually-beneficial outcomes.

“As the newest partner of the flybuys program, Optus will provide great offers to flybuys members on a range of Optus mobile, broadband and wearable products,” the statement said.