O2's people-powered giffgaff unleashed

This insight is locked

This insight is open to all subscribers and registered users, or available by completing the form.

The UK has largely escaped the widespread Western European phenomenon of multiple-branded mobile offerings from network operators. In markets such as Belgium there are numerous wholly-owned and operated brands by the three mobile network operators (Base, Mobistar and Proximus) for consumers to choose from – over 20 brands were being marketed at the last count. However, the launch of Scottish-themed prepaid mobile offering giffgaff this week heralds the initial arrival of this phenomenon in the UK retail market. giffgaff has been widely referred to as a new MVNO but it is actually owned and operated by the UK’s largest mobile network operator O2 – therefore making it an O2 brand. giffgaff has done little to challenge the MVNO moniker being attached to it. No doubt it's hoping to benefit from the perception of it being the little guy taking on the might of the big operators.

giffgaff states that its name is Scottish for ‘mutual giving’ and claims to be a ‘people-powered’ mobile network as it will involve its customers in the way it is run. Customers, or ‘members’ as giffgaff calls them, will be rewarded with points whenever they get someone else to join, help another member with their giffgaff queries or help the giffgaff marketing team promote the service. The points are convertible to cash, mobile credit or a charity donation twice a year.

So far the offering appears rather gimmicky, with initial marketing efforts focussed on a range of novelty items (or ‘tools’ as giffgaff calls them) that members are encouraged to ‘hire’ and film themselves with before posting the results online; just who would want to be filmed collecting dog poo or with a bondage-suited 'gimp' remains unclear! The management team at giffgaff, led by ‘gaffer’ Mike Fairman, have equally entertaining job titles that would place them at the head of the queue to be deemed surplus to requirements when cost-cutting is being considered at 'traditional' mobile operators, including a ‘Chief of Member Experience’, a ‘Proposition and Product Theorist’ and a ‘Digital Guru’. Which one of them drew the short straw to be the gimp is not yet known.

Despite the initial novelty value, the primary attraction to customers will be the potential to reduce their mobile phone charges. giffgaff has announced that calls to UK mobiles and landlines will cost GBP0.08 per minute and texts will be GBP0.04 each. Calls between giffgaff members will be free for up to 60 minutes per call and web browsing will be also free at launch for up to six months. giffgaff claims it will listen to user suggestions on pricing when it introduces data charges next year. Call me a cynic, but I can’t see many members suggesting that they start charging for something they started off giving away for free!

giffgaff may be Scottish for ‘mutual giving’ but the only thing being given at the moment to industry watchers (especially those who recall former user-community mobile offerings like the ill fated, ad-funded blyk) is a healthy dose of scepticism. Gimmickry will only get giffgaff so far; the real test will be if it can deliver a proposition that customers are looking for. Until then, one thing that appears unlikely to disappear anytime soon is the rise of operator-owned branded offerings.

Report details

O2's people-powered giffgaff unleashed
Released
NOVEMBER 2009

Download the report

Complete the form to get instant access to this content. For easier access in the future, you can register for a free account here.

By submitting this form, you agree that your email address and related activity on the platform will be processed for the purpose of generating and providing the requested report. Your data will be shared with GSMA Intelligence for this purpose. For more information, please see the GSMA Intelligence Privacy Policy.

Opt-in for Marketing Communications:
To ensure you stay up-to-date on the latest developments in the mobile industry, GSMA Intelligence would like to send you information about events, products, services, and initiatives, as well as industry news. Please subscribe by ticking this box; once subscribed, you can tailor what you receive from us at any time, or unsubscribe, should you wish.

Related research

The Mobile Economy Latin America 2026

Topic
Mobile networks and connectivity

The role of the mobile industry as an engine of economic development is particularly important as Latin America experiences moderate growth and persistent productivity challenges. With traditional growth drivers under pressure, digital technologies are becoming essential tools to boost competitiveness and support economic diversification. In 2025, mobile technologies and services in Latin America generated $600 billion in economic value, supported nearly 3 million jobs and contributed $50 billion in public revenues.

This insight is locked

Mobile investment needs in Europe

Topics
Public policy and regulation
Mobile networks and connectivity

Many European markets are lagging behind in terms of network quality and the deployment of advanced mobile networks. To quantify the investment required for Europe to meet its 5G goals and regain its global leadership in mobile connectivity, GSMA Intelligence conducted a detailed economic modelling exercise.

This insight is locked

Assessing operator scale in the mobile data era in Latin America

Topics
Mobile networks and connectivity
Public policy and regulation

Latin America’s mobile markets are transitioning deeper into the data era, where rising data demand, high investment requirements and declining mobile prices have made operator scale increasingly important. This report examines how market structure, consolidation and entry have affected investment, network quality and consumer outcomes across Latin America since 2010.

This insight is locked

Authors

How to access this report

Annual subscription: Subscribe to our research modules for comprehensive access to more than 200 reports per year.

Enquire about subscription

Contact our research team

Get in touch with us to find out more about our research topics and analysis.

Contact our research team

Media

To cite our research, please see our citation policy in our Terms of Use, or contact our Media team for more information.

Learn more
Full access
Get full access to our research now, get in touch with us to find out more about our research topics and analysis
  • 200 reports a year
  • 50 million data points
  • Over 350 metrics

How can we support you?

Get in touch

Contact the GSMA Intelligence support team for help with your account, subscriptions, or access to reports and insights.

Newsletter

Subscribe to the GSMA Intelligence newsletter for the latest industry news and insights, delivered to your inbox.