­Australia's Telstra is set to target the youth market by establishing a new retail alliance with Boost Mobile, a provider of pre-paid mobile products and services.

Under the agreement Boost will market its Boost Mobile branded products on the Telstra network from early next year. Boost Mobile currently operates as an MVNO on the Optus network.

Group Managing Director Telstra Innovation Products and Marketing Kate McKenzie said Boost would enable Telstra to further extend its reach into the youth segment.

"This agreement aligns with our strategic priorities to build new growth businesses and grow our customer numbers," Ms McKenzie said.

Boost markets pre-paid mobile products and services to the youth mobile customer segment and has captured a significant share of this segment over the past 12 years.

Ms McKenzie said Boost will continue to market its products, offers and devices under its own brand.