- Lidl is preparing to launch a low-cost mobile virtual network operator supported by 1GLOBAL, with Spain among its priority markets.
- The service will be integrated into the Lidl Plus app, which has over 100 million users, as a loyalty and diversification tool.
- The Schwarz group has acquired a 9,9% stake in 1GLOBAL, giving it access to licenses, eSIMs and wholesale agreements in 12 countries, including Spain.
- Lidl's entry increases the pressure on the Spanish low-cost segment, already highly competitive with operators such as DIGI and various MVNOs.
Lidl has decided to take a leap beyond supermarket shelves and enter the highly competitive mobile telecommunications market. The German group is finalizing the launch of Low-cost mobile phone plans in Spain and in much of Europe, relying on a mobile virtual network operator model and the huge user base of its loyalty app.
The company already offers mobile services in markets such as Germany, Austria and Switzerland under the Lidl Connect brand, but now wants to scale that experience to around thirty countries. Spain is among the priority destinations This expansion comes amid a fierce price war in the low-cost segment, where large telecoms, second brands, and new digital players compete.
Lidl enters the cheap mobile tariff war
According to information reported by international business media and confirmed by the company itself, Lidl is preparing to launch Affordable mobile plans in up to 30 marketsThese include Spain, France, the United Kingdom, and the United States. The roadmap anticipates completing the rollout before 2026, although the company has not yet specified the exact order of arrival in each country.
In the Spanish case, the objective is to position itself in the segment of low-cost mobile plansThis is a particularly price-sensitive market where both large traditional companies and their budget brands already operate, along with numerous independent MVNOs. The entry of a consumer goods giant like Lidl adds a competitor with a very particular weapon: millions of customers who already shop regularly in its stores and use its discount app.
The launch also comes in a context of high competitive tension. Spain is one of the European markets with greater price pressureWith operators like DIGI pushing prices down, and brands like O2, Lowi, and Simyo trying to defend their market share with competitive offers, any new player that arrives with scale and notoriety can force the rest to adapt.
Lidl's intention is not to behave like a classic telecom focused solely on minutes and gigabytes, but to use telephony as a natural extension of their daily relationship with the consumerMobile thus becomes a new piece of its commercial ecosystem, alongside weekly shopping, coupons and other digital services.
For now, the chain has not specified the exact activation date of its MVNO in Spain, nor the final structure of the pricing plans, but the inclusion of the country in all the leaked expansion plans makes it clear that The Spanish market is on our immediate radar. of the German group.
A mobile virtual network operator supported by 1GLOBAL and the network of major telecoms
To enter the telecommunications business without building a network from scratch, Lidl has opted for the model of mobile virtual network operator (MVNO)Instead of investing billions in antennas, spectrum, and network equipment, it will lease wholesale capacity from an established operator and resell the service under its own brand.
The chain's owner, Schwarz Group, has signed a strategic agreement with 1GLOBAL (formerly Truphone), an international provider specializing in mobile and eSIM services. This company operates as a full MVNO in several European countries and holds licenses and wholesale agreements in a dozen markets, including Spain, where it uses the Orange network integrated into MasOrange.
As part of the agreement, the Schwarz group has acquired a 9,9% of 1GLOBAL's capitalThis stake guarantees Lidl preferential access to the technical infrastructure, the core network, and existing regulatory agreements, greatly simplifying its entry into new countries. Based on this, the retail giant will be able to design its own tariffs, control billing, manage number portability, and issue eSIMs independently.
This configuration corresponds to the model of Full MVNOThis is more ambitious than that of a basic MVNO, which simply provides the brand and leaves almost all operations to the wholesaler. In this case, Lidl will handle sales management, customer relations, and a significant portion of the systems, while delegating the physical network and international connectivity to its partners.
In Spain, Lidl's mobile offering will likely rely on agreements with 1GLOBAL with MasOrangeThis will allow it to offer nationwide coverage and high-speed data services without deploying its own infrastructure. This combination of existing network and lean infrastructure reduces financial risk and accelerates the launch timeline.
Prices within Lidl Plus: loyalty and digital ecosystem
If there is one element that differentiates this approach from other forays into the low-cost segment, it is the central role of the application. Lidl MoreThe company wants the entire mobile line contracting and management cycle to go through its loyalty app, which already has over 100 million users worldwide and millions of active customers in Spain.
Lidl Plus was created as a tool to collect discounts, receive personalized coupons, and view brochures from your mobile phone, but the German group intends to turn it into the gateway to an ecosystem of digital servicesMobile telephony will be one of the pillars of that strategy, along with other products that the conglomerate develops through its technology division Schwarz Digits.
According to Julian Beer, an executive at Lidl International, the goal is to offer users a “simple connectivity”Without complex fine print or cumbersome processes. The idea involves easy-to-understand plans, digital contracting, the option to sign up via eSIM, and integrated daily management with the rest of the app's features.
This approach fits with a broader trend in Europe: more and more companies with an established customer base are using mobile telephony as loyalty and revenue diversification toolInstead of seeking large margins per line, the goal is to strengthen customer relationships and increase the frequency of interaction with the brand.
In the specific case of Spain, Lidl intends to leverage its network of over 700 stores and the millions of Lidl Plus users to offer a relatively convenient experience: sign up for the plan from your mobile, resolve basic tasks without needing to go to a telecommunications store and, potentially, link supermarket promotions with the use of the mobile service.
More competition in the Spanish low-cost market
Lidl's potential entry into the Spanish mobile market comes in an already crowded environment. Operators such as DIGI has gained market share through aggressive pricing And a strategy based on their own network gives them a cost advantage over many MVNOs that rely on wholesalers. Around them, second-tier brands like Lowi, O2, Simyo, and Pepephone try to maintain their market share with different commercial approaches.
In this context, the entry of a player from outside the traditional telecom sector creates a different dynamic. Lidl doesn't simply compete with another tariff; it relies on... a mass-market brand with millions of repeat customersFor a consumer who is particularly price-sensitive, being able to adjust both their mobile phone bill and their shopping receipt at the same time can be an attractive combination.
Industry experts consulted by various media outlets suggest that the move by the German group This will increase pressure on margins. of the operators already present in the budget segment. Not only because of the direct impact on prices, but also because of the obligation to strengthen loyalty programs, improve their digital channels, and review additional benefits to retain the most fickle customers.
Furthermore, Lidl's commitment joins that of other non-traditional companies that have entered the telecommunications sector, such as fintechs like Revolut, Klarna or N26, which have already started similar projects taking advantage of wholesale agreements with providers like 1GLOBAL. The common denominator is always the same: to better monetize an existing user base through high-recurrence services.
For the Spanish consumer, the most immediate consequence of these types of movements usually translates into greater commercial offering and more price competitionThe trade-off, from the operators' point of view, is the need to balance the continuous reduction of tariffs with investment in networks and the sustainability of the business.
A move aligned with the Schwarz Group's strategy in Europe
Lidl's entry into mobile telephony is not an isolated experiment, but rather another piece within its digital transformation strategy. Schwarz Group, parent company of Lidl and Kaufland. The conglomerate has been strengthening its presence in areas such as cloud computing, cybersecurity and technology services for some time through its Schwarz Digits division.
The underlying objective is build your own ecosystem that goes beyond simply selling food and general merchandise. Controlling the digital relationship with the customer, managing data centrally, and adding recurring value-added services are all part of that roadmap. In this sense, mobile telephony fits in as an additional component to be present in the user's daily life.
For European markets, including Spain, this means that Lidl is not just opening new stores or adjusting product ranges, but is trying to position itself as a relevant player in digital servicesMobile connectivity, combined with your app and physical network, allows you to establish additional customer touchpoints, both inside and outside the supermarket.
Important questions remain to be answered, such as the exact price at which the service will launch in Spain, the configuration of data plans, and the role that bundled offers combining mobile and fiberThe company has already hinted that it is considering complementing its mobile plans with fixed broadband connections in certain countries, which would point to an offer closer to the complete package that dominates the Spanish market.
In any case, the message the group is sending is clear: it wants to leverage its European scale and negotiating power to position itself at the lower end of the price market, while maintaining a relatively simple user experience supported by eSIM technology and digital management from Lidl Plus.
Lidl's move to sell gigabytes along with the weekly purchase This clearly illustrates how the telecommunications landscape is changing in Spain and Europe: it's no longer just the established operators and their secondary brands that compete, but also supermarkets, fintech companies, and digital platforms that use the MVNO model as a fast track to diversify revenue streams. If the German chain manages to apply its formula of competitive pricing and simplified processes to mobile tariffs, the Spanish low-cost segment could experience a further tightening of competition in the coming years.
