9/23/2009 12:54:00 PM
Giffgaff ‘people powered’ MVNO to launch on O2
A ‘people powered’ MVNO, called ‘Giffgaff’, will launch on the O2 network before the end of 2009.
The Sim-only product offers its members cheaper calls in exchange for ‘getting involved’ with the company by writing blogs, posting on a forum, and referring friends to the service. The blog will go live today (23 September).
Giffgaff, which is an online only business, will operate with a low cost base, with no overheads from high street stores, handset subsidies and call centres.
Members have a choice of what to do with their ‘rebate’ from the company – they can use it for mobile calls and texts, take the cash, or donate it to their preferred charity.
The company will work as a standalone business, but will use parent company O2’s network. It will be headed up by former O2 head of broadband Mike Fairman.
Fairman (pictured) said: ‘The idea came from a mate of mine, one of our O2 brand guys. He was very excited about the possibilities of a potential new business model, and he thought it would be great to apply the principles of web culture to a mobile network operation.
‘As I’ve run online businesses at O2 for a number of years, we took the idea to the O2 board who loved it and decided it was strong enough to become a company in its own right.’
He added: ‘The people-powered model will be at the heart of our business and we believe it will help us build better long-term relationships with our members. For instance – who needs market research when you have an active community talking to each other and sending you suggestions?’