German supermarket chain Lidl is set to expand its MVNO mobile offering to more European markets.
The Financial Times reports that Lidl will start to offer mobile plans in several countries later this year.
MVNOs: A niche or a nuisance?
Mobile virtual network operators are shaking up the telecoms market, but is this at the expense of the mobile operators?
At present, Lidl offers mobile services in Germany, Austria, and Switzerland. The FT notes that this could expand to up to 30 countries, including the UK, US, France, and Spain.
The company's owner, Schwarz Group, has signed an agreement with mobile communications provider 1GLOBAL so the retailer can become a virtual network operator, or MVNO.
Lidl will offer the services through its Lidl Plus app, which has more than 100 million users.
An MVNO doesn't own its network infrastructure, but instead offers services via an established carrier.
A number of new entrants have been tipped to enter the market, including fintechs such as Revolut and Monzo. A lot of companies launch MVNOs to tap into their already existing customer base.
Several supermarket chains offer mobile plans – Tesco Mobile is notably one of the largest in Europe, with around six million customers in the UK.
Comments