Woolworths to run its retail sites on NBN fibre

Woolworths has struck what is being called a “significant enterprise deal” that will eventually see it run connectivity for some 3000 retail sites over NBN fibre.

The deal, which was first reported by telecommunications publication CommsDay, will cover retail sites like supermarkets, Big W, Dan Murphy’s and BWS.

The agreement was struck by Woolworths, the retailer’s existing connectivity supplier Telstra, and NBN Co.

Retail sites that aren’t currently serviced by fibre will have their connections upgraded by NBN Co, but only when NBN Co is already in the area already as part of the existing regular network rollout.

A Woolworths spokesperson confirmed the nature of the deal.

"We will be converting sites on to NBN provided fibre through our existing provider Telstra,” the spokesperson told iTnews.

“We have an agreement for uplifted connectivity favouring NBN Co's infrastructure through Telstra."

An NBN Co spokesperson told iTnews it was “pleased by the announcement of this significant enterprise deal which will see NBN Co provide the underlying NBN fibre access network to deliver voice and data services to Woolworths through their retail partner, Telstra.”

“Woolworths is a great example of the market responding to our compelling wholesale product and service proposition and we look forward to working with them and Telstra to deliver the NBN fibre access network to their sites.”

Comment was also being sought from a Telstra spokesperson at the time of publication.

Woolworths’ move onto the NBN marks a significant step for NBN Co as it takes its enterprise Ethernet products to market.  

“The business segment is an important revenue driver for NBN Co … and is expected to deliver around $1 billion in annual revenue by 2022,” NBN Co spokesperson said.

NBN Co is betting on the business sector to help boost the company’s average revenue per user (ARPU).