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The Schwarz Group, one of the world’s largest retail conglomerates, has announced a comprehensive strategic partnership with 1GLOBAL, a pioneer in global telecommunications solutions. As part of the agreement, companies of the Schwarz Group are acquiring a 9.9% stake in 1GLOBAL, which will serve as the exclusive technology partner for Lidl’s mobile connectivity for the next five years.
The partnership signals a major shift in the "retail-telco" space, as Lidl transitions from a traditional reseller of prepaid plans to an independent Mobile Virtual Network Operator (MVNO). This move allows the retailer to offer mobile services autonomously while leveraging 1GLOBAL’s technical platform and international licenses.
From Reseller to Independent MVNO
Lidl has provided prepaid mobile plans through "Lidl Connect" since 2015. However, this new collaboration represents a fundamental change in business logic. By becoming an MVNO, Lidl gains the flexibility to:
Partner Directly with MNOs: Lidl will collaborate with local mobile network operators across different regions to optimise service quality and pricing.
Control Customer Experience: The retailer will handle customer acquisition and service internally, while 1GLOBAL provides the underlying technical infrastructure and regulatory compliance.
Scale Globally: 1GLOBAL currently holds licenses in 12 countries, with plans to expand its footprint to over 30 countries in the near future.
Hakan Koç, founder and CEO of 1GLOBAL, noted that the partnership aims to make mobile communications as "intuitive, flexible, and digital as possible" for millions of consumers.
Digital Integration via Lidl Plus and STACKIT
A critical component of the strategy is the integration of telecommunications services into the "Lidl Plus" loyalty app. With over 100 million users, Lidl Plus is being positioned as a "lifestyle companion" rather than a simple discount card.
Key technical and operational synergies include:
App-Based Management: Customers will be able to manage their mobile plans directly through the Lidl Plus app, increasing user stickiness and engagement frequency.
Cloud Infrastructure (STACKIT): The partnership includes the development of telco solutions on STACKIT, the Schwarz Group’s proprietary cloud solution. This ensures strict data sovereignty and secure handling of customer data.
Democratizing Connectivity: Julian Beer, Executive Vice President of Purchasing at Lidl International, emphasised that the goal is to provide high-quality, affordable connectivity without the barrier of long-term contract commitments.
Market Impact and Industry Transformation
For established network operators, the emergence of Lidl as a powerful MVNO offers both a challenge and an opportunity. While Lidl will compete for subscribers, MNOs stand to benefit from the higher network utilisation and massive reach of Lidl’s 12,000+ stores.
Industry analysts view this as a sophisticated "loyalty-driven" play. By embedding essential services like mobile data into the grocery ecosystem, Lidl is creating a multi-dimensional relationship with its customers that extends far beyond traditional retail.
Global Outlook and Expansion
The five-year exclusivity deal ensures that 1GLOBAL will be the primary engine behind Lidl’s telco ambitions as it eyes expansion into more than 30 markets. As 1GLOBAL scales its technical platform, the Schwarz Group’s equity stake provides the financial stability and industrial backing required to challenge traditional telco giants.
For the retail sector, the Lidl-1GLOBAL deal serves as a blueprint for how large-scale loyalty programs can be leveraged to enter specialised service markets like telecommunications, utilities, or financial services, turning a "retailer" into a comprehensive "service provider."
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