LIDL has joined the latest trend to make lots of money: setting up your own low-cost operator

Lidl is at the doors of launch a low-cost mobile phone serviceeven more competition for a Spanish MVNO market that is beginning to become saturated and in which it seems practically impossible to surpass the current king: Digi.

The LIDL plan. Grupo Schwarz, owner of LIDL, has acquired 9.9% of the communications provider 1Global, currently operating in Spain under the Orange network. The plan is to create a virtual mobile operator (OMV) to offer low-cost telephone services, wanting to expand the proposal throughout Spain and 30 more countries.

The how. The service will be offered through LIDL’s nerve center for the smartphone: LIDL Plus. The application will allow the contracting and management of the service, ensuring the executive of the hypermarket chain that it will offer “simple connectivity.”

LIDL has an important advantage over the rest of its rivals: physical presence throughout the entire Spanish territory and a potential customer in search of low prices. It is not the first in its sector: Eroski and Carrefour They were among the first in Spain to offer this service.

The electrical phenomenon. The MVNO market is beginning to become saturated with more and more companies outside the sector. The keys? Low operating costs and high margins. The most recent example is PcComponentes, which overnight became an operator with the help of Likes Telecom, a Spanish company focused on the creation of telecommunications brands.

We also have recent examples in Revolut, Klarna or N26, players in the financial sector introduced into the world of telecommunications. A simple way to diversify sources of income and build customer loyalty through applications they already use.

Yes, but. None of these players are fighting to win the telecommunications market, where the king is simply unbeatable. DIGI is not only the low-cost operator with the largest volume of clients in Spain: it is the only one that can face giants like Telefónica, MásOrange or Vodafone (whom to pretend to surprise in the coming months).

In Xataka | Digi wants to become one of the largest teleoperators in Spain. And that is why it has gone from 4,000 to 10,000 workers.

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The news

LIDL has joined the latest trend to make lots of money: setting up your own low-cost operator

was originally published in

Xataka

by
Ricardo Aguilar

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