Retailer Lidl plots MVNO push across its markets

Supermarket chain Lidl is set to expand its MVNO footprint to a potential 30 countries, following a five-year deal with 1Global which will see the retailer’s parent company take a 9.9 per cent stake in its technology partner. In a joint statement, the pair announced an ambition to meet the need for easily accessible, flexible and affordable connectivity without long term contracts. Lidl already provides MVNO Lidl Connect in: Germany using Vodafone’s network; Switzerland hosted on Salt Mobile; and Austria on Drei’s infrastructure. All three services are advertised on their ease, price and are pre-paid. Following its deal with 1Global the Schwarz Group-owned retailer will enter partnerships with local mobile network operators in each of its target markets. The duo stated they are “transforming the industry and expanding the overall telecommunications market” asserting partner operators hosting the service would benefit from “Lidl’s reach, growth and higher utilisation”. Currently 1Global has partnerships with operators in 12 countries but plans to expand this to over 30. It will supply the technical platform for the Lidl MVNO and will be its exclusive technology partner for the mobile service. The deal will also see the vendor develop for Schwarz Group’s cloud offering. Lidl International EVP purchasing Julian Beer said the partnership “enables us to become active as an MVNO ourselves” adding “thanks to our reach of well over 12,000 stores and more than 100 million customers in our Lidl Plus loyalty app, we are creating an attractive platform for established telecommunications companies.” The move was first reported by Financial Times yesterday (12 April) before being confirmed in the official statement today. Headache for operators Commenting on the move reported by the FT on LinkedIn CCS Insight director consumer and connectivity Kester Mann said “Lidl would almost certainly look to leverage its brand values around affordability and simplicity that would place further downward pressure on mobile pricing. That’s good news for consumers, but another headache for operators”. “It will be interesting to see the extent to which Lidl brings its mobile and grocery services together. Surprisingly, it has kept the two largely separate so far in Austria, Germany and Switzerland.” The post Retailer Lidl plots MVNO push across its markets appeared first on Mobile World Live .