How is Lidl Expanding its Mobile Services into New Markets?

Lidl is preparing to expand its mobile service into new international markets as part of a strategic partnership with telecommunications provider 1GLOBAL.

The move positions the retailer as a growing competitor in the telco sector, with its plans to extend beyond its existing footprint in Germany, Austria and Switzerland, according to the Financial Times.

The agreement sees Schwarz Group, Lidl’s parent company, acquire a 9.9% stake in 1GLOBAL, which will serve as Lidl's exclusive technology partner for mobile connectivity over the next five years.

Lidl is targeting expansion into as many as 30 countries, which includes the UK, US, France and Spain as reported by Financial Times, though it has not yet specified which markets will launch first.

At the core of Lidl's strategy is the company's transition into a Mobile Virtual Network Operator (MVNO).

As an MVNO, Lidl does not own its own network infrastructure. Instead, it will partner with established mobile network operators across international markets to access capacity while managing customer relationships and service delivery directly.

MVNO model supports international rollout

By adopting the MVNO model, Lidl will gain flexibility to enter multiple markets while adapting to local telco legislation.

Through its partnership with 1GLOBAL, the retailer will negotiate agreements with national operators, allowing it to respond to regulatory and commercial requirements in each country.

Hakan Koç, founder and CEO of 1GLOBAL, explains: “Lidl is the partner that shares our vision: we want to make mobile communications as intuitive, flexible and digital as possible for millions of people.

“Our technology focuses on digital offerings tailored to the needs of users and their various devices.

“We want to successfully drive the technological transformation of the global telecommunications market in the best interests of people.”

1GLOBAL will provide the underlying platform, including telco licences and operator partnerships across 12 countries, with plans to extend that reach to more than 30.

Leveraging retail scale and digital platforms

Lidl’s mobile proposition builds on its existing prepaid service, Lidl Connect, which has operated since 2015.

The new phase of expansion integrates Lidl Plus, the retailer’s digital loyalty app, as a central distribution and management channel for mobile services.

The scale of Lidl’s retail and digital presence gives it a built-in customer base for cross-selling telco services. Lidl Plus is expected to act as the primary interface for users to manage mobile plans, track usage and access bundled offers.

This reflects a wider trend in telecoms, where non-traditional players are entering the market using digital-first models and existing customer ecosystems.

Digital-first telco strategy takes shape

The partnership also includes the development of telco services on STACKIT, Schwarz Group’s cloud platform.

This supports data sovereignty requirements, ensuring customer data is handled securely within defined jurisdictions in European telco markets.

Kester Mann, Director, Consumer and Connectivity Analyst at CCS Insight, says: “Working with 1GLOBAL would help Lidl take a digital-first approach to its mobile offer. This could include using eSIM, which is powering Revolut's mobile service.

“It appears that the Lidl Plus loyalty app would play a major role; it has over 100 million customers, representing a huge market to cross-sell into. 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 three markets where it already offers mobile plans."

eSIM technology is expected to play a role in simplifying onboarding and service management as Lidl expands into new regions.

With its combination of telco partnerships and digital infrastructure use as an MVNO, Lidl is building a model that allows it to enter multiple national markets while maintaining a consistent service approach.