O2 to launch Giffgaff MVNO

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‘Giffgaff’, a new MVNO that will launch on the O2 network before Christmas, will encourage members to get involved with the business and reward them in return.

The SIM-only service encourages users to refer friends Giffgaff, write blogs and post on its online forum. In return, the MVNO will reward members with cheaper calls for ‘getting involved’ in the company.

Twice a year the company will give customers rebates and they will be able to decide whether to use it for mobile calls and texts, take it as cash or donate it to charity.

The company will use parent company O2’s network but will work as a standalone business. It will be headed up by Mike Fairman, who spent 12 years at O2. Most recently he set up and ran the network’s home broadband business.

Fariman said: “The name Giffgaff came about from its meaning – to give and receive. We’re not spending millions of pounds on advertising campaigns – the incentive is for members to recommend others to join Giffgaff, which will contribute towards their rebate.

“We want to hear from members that care about the business via the forum, which will give us a better idea of how we can move the business forward. They’ll benefit from great offers at a very low cost.

“We’ve chosen this to run as a SIM-only service becasue that market is strong and growing at present. Many people are still happy to use the same phone and it means we’re not having to subsidise handsets.”

 

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