Telstra have joined the supermarket wars allowing customers to earn Coles flybuy points when they fork out for Pre-Paids.

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Coles customers will be able to earn flybuys points when they purchase Telstra Pre-Paid products, in a new partnership, announced today, and includes Target, Kmart and Coles Express.

Over eight million Oz households will start receiving flybuys Welcome Packs, which include a flybuys card from next week.

Telstra’s Pre-Paid customers who are existing flybuys members can start earning points using their new/existing card from next week.

“This partnership will give our loyal Pre-Paid customers even greater value and reward them for choosing Telstra as their mobile provider,” Telstra Chief Marketing Officer, Mark Buckman, said.

“Telstra Pre-Paid customers will earn points for every dollar they spend at Coles, Target, Kmart and Coles Express, which can be redeemed for a huge range of rewards from shopping to travel and accommodation.”

Purchase of a new Android smartphone, such as LG’s Optimus Spirit  (costs $49.50), will earn 1000 bonus points, while Coles customers will be rewarded with nine points for every $1 spent when they recharge.

Or you use your points to reduce your supermarket bill.

Users earn nine points for every $1 spent on Telstra Pre-Paid Recharge until 22 July and three points thereafter.

A $30 Telstra Pre-Paid recharge at a Coles earns you a freebie $2 SIM Starter Kit ansd a massive 1,000 flybuys bonus points can be got by activating the SIM card by 22 July.

Other partners joining the new flybuys include Webjet and AGL. Existing partners include NAB, Target, Kmart, Kmart Tyre & Auto Service, Coles Express, Liquorland, 1st Choice Liquor and Coles Insurance.