Categories: MobilityWorkspace

Giffgaff To Offer Handsets To Customers

Community-run Mobile Virtual Network Operator (MVNO) Giffgaff has announced plans to stock handsets in the near future, having previously resisted calls to do so.

Until now, Giffgaff has only offered standard pay-as-you-go (PAYG) and contract SIM cards to members, rejecting requests to offer mobile phones as incompatible with its ethos.

Launched in 2009, Giffgaff rewards members for running parts of its business such as answering questions in the community, recruiting new members or promoting the service, which operates on O2’s network. In return, it keeps costs down and passes on the savings to its customers.

Gifgaff handset sales

It questioned the profitability of selling SIM-free handsets which are often sold for either the same or less than cost price, while it “never felt right” about tying customers down to expensive pay monthly contracts in exchange for an attractive hardware price.

However, requests for handsets have become more frequent and Giffgaff says it has been forced to reconsider its stance because it discovered that members were leaving the network not because they were dissatisfied with the service, but because they needed a new handset.

Giffgaff says the only option it had was to find a way to offer mobile phones to customers but without using traditional contracts or costly SIM-free device sales. It says the task is a huge undertaking and it has spent the last few months talking to logistic suppliers, handset vendors and finance specialists to determine the feasibility of such a project.

It plans to consult with members before the handset packages launch. The first such discussion is already open, with the operator opening a forum thread inviting members to share their opinions on handsets.

What do you know about UK mobile operators? Find out with our quiz!

Steve McCaskill

Steve McCaskill is editor of TechWeekEurope and ChannelBiz. He joined as a reporter in 2011 and covers all areas of IT, with a particular interest in telecommunications, mobile and networking, along with sports technology.

View Comments

  • Hey, just to correct the giffgaff offering.

    giffgaff does not offer contract SIM cards to members. the word contract is a No-No for giffgaff. Although the offering is similar to one month sim plans, where the members are free to choose any of the 6 "goodybags" and 3 "gigabags" they want for the next month.

Recent Posts

Craig Wright Sentenced For Contempt Of Court

Suspended prison sentence for Craig Wright for “flagrant breach” of court order, after his false…

2 days ago

El Salvador To Sell Or Discontinue Bitcoin Wallet, After IMF Deal

Cash-strapped south American country agrees to sell or discontinue its national Bitcoin wallet after signing…

2 days ago

UK’s ICO Labels Google ‘Irresponsible’ For Tracking Change

Google's change will allow advertisers to track customers' digital “fingerprints”, but UK data protection watchdog…

2 days ago

EU Publishes iOS Interoperability Plans

European Commission publishes preliminary instructions to Apple on how to open up iOS to rivals,…

3 days ago

Momeni Convicted In Bob Lee Murder

San Francisco jury finds Nima Momeni guilty of second-degree murder of Cash App founder Bob…

3 days ago