Optus has dropped its retail subsidiary C2One Communications and has sold 11 C2One retail locations to the Strathfield Group.
C2One was purchased by Optus in 2001, as part of Optus' strategy to gain entry into the retail telecommunications market.
A spokesperson for the telco said the decision to divest C2One stores was part of its strategy to exit the C2One brand from the retail market.
“We will hand over 39 C2One store leases to existing channel partners including Telechoice, Strathfield, Optus World and Allphones,” the spokesperson said.
The Optus spokersperson also said these changes will result in 90 redundancies of C2One staff by the end of May.
Jack Shamoon product manager mobile Strathfield Group, said the acquisition was in line with its aggressive drive towards franchising its business.
“These stores will become owner-operated businesses, complying to our regulations and standards,” said Shamoon. “I believe franchising is a business model that will help drive down overhead costs.”
Shamoon said Strathfield would do what it could to retain as many C2One staff as possible, despite several internal staff members making inquiries about becoming franchise operators.
Strathfield’s acquisition of C2One stores also meant the retailer would not have to compete head-to-head with Optus, Shamoon said.
“We are an Optus partner and it makes commercial sense to acquire its stores rather than open up ones in competition to the telco," he said. "However we will be taking on Optus’ rival, Telstra, head on.”
Optus' C2One stores sold to Strathfield Group
By Lilia Guan on May 2, 2006 12:01PM