Giffgaff: An Alternative Mobile Phone Experience

Giffgaff, meaning mutual accomodation or mutual giving, is an ancient Scots word given a new lease of life by a new mobile network, whose principles adhere to the definition of their company name.

Giffgaff have formulated a business model like no other in the world of telecommunications. With the backing of O2, the small firm is a sim only provider, who do not believ in contracts or over priced tariffs. They are only available online in a bid to cut out the unneccesary expense and waste of stores and call centres.

They are proud of their environmentally friendly credentials, championing recyling, waste minimalisation, and energy saving measures.

Although they are a small company, their support from O2 provides peaceof mind to uncertain customers; the backing of such a well-known provider instils a sense of security in potential clients. With a team of just 14, one wonders how they are able to cope. The answer lies largely in their reliance on members to promote and market the product within their own circles, effectively becoming the sales and marketing department for the company.

Their efforts are rewarded through payments made twice a year - in June and December - by Gifgaff to their loyal members. By e-mailing friends about the Giffgaff service, sending SIM cards to friends, and contributing to the Giffgaff forum, users are able to earn "payback points" which can be redeemed in three ways:

Receiving the money as cash via a paypal account,
Exchanging it for airtime credit
Donating it to Cancer Research UK.

In the most recent batch of payouts, one user received £654 for their promotional efforts.

This is the latest company to gain recognition at a time when mobile network costs are being seriously challenged. There is a growing backlash against networks, and a resultant trend for companies to reassess the relationships they have with their customers.

Recent campaigns for cheaper mobile call costs, cheap international calls, and the reduction of MTR's (mobile termination rates), are becoming a prominent feature in the world of telecommunications.

It seems then, that Giffgaff have emerged at just the right time, and are developing into an exemplary embodiment of the current telecomms zeitgeist, which is personified by simplication, user empowerment, and ethicality.