Giffgaff Limited
TypeSubsidiary
IndustryTelecommunications
FoundedNovember 25, 2009 (2009-11-25) in Slough, England, UK[1]
FounderGav Thompson[2]
HeadquartersUxbridge, England, UK[3]
Area served
United Kingdom
Key people
Ash Schofield (CEO)
ProductsContract and PAYG telephonic services. Phone sales.
ServicesMobile telephony
Revenue
  • Increase £559.1 million (2022)
  • £524.4 million (2021)[4]
  • Increase £66.3 million (2022)
  • £42.6 million (2021)[4]
Number of employees
Zero direct employees.[4] Services are seconded from parent company or outsourced.
ParentTelefónica UK Ltd
Websitegiffgaff.com

Giffgaff Limited is an MVNO, marketed as a budget service provider and flanker brand of Telefónica UK (trading as O2 UK).[5][6][7] The stylised 'giffgaff' brand was founded[8][9] by Gav Thompson a former marketing executive for Telefónica UK and was launched online only, on 25 November 2009.[1]

Products and services

At launch, Giffgaff's first product was a prepaid SIM card providing all standard 2G and 3G mobile phone services and charging on a pay-as-you-go basis. Following this, Giffgaff announced bundles of minutes, texts, and data, called "goodybags". The idea for bundles emerged from the community forums.[10]

In June 2012, it was announced that customers could renew "goodybags" automatically via a PayPal account when saved on their platform payment profile.[11]

In 2011, Giffgaff added data-only tetherable plans called "gigabags" to their lineup of products.[12] Gigabags were officially retired in 2018, as part of product restructuring.[13] Giffgaff allow tethering to other devices, using their bundled data allowances.[14]

In March 2014, Giffgaff announced that it would add a line of 4G LTE "goodybags" with purchase available starting April 2014.[15]

In May 2014, Giffgaff announced that they were now an official Apple carrier,[16] which was closely followed by another announcement that they would soon be stocking iPhones in their online shop – this would unlock options on iPhones that would have normally been locked for users, including tethering and voicemail options. iPhone devices went on sale starting 4 June 2014, to accompany a wide range of manufacturers including Samsung handsets. Refurbished devices have become a purchase option, with a Giffgaff 12-month+ warranty included. On 2 November 2020, Giffgaff announced that they are terminating their business relationship with RateSetter, the former peer-to-peer lender, now owned by Metro Bank.[17] Giffgaff's current phone loan initiative is with Klarna Bank Ab , branded as Klarna, a Swedish bank that provides financial services.[18]

From 2020, all goodybags now include unlimited minutes and texts to standard UK numbers. Full speed data allowances range from 1GB to unlimited. The prices listed are between £6 - £35 per month and are reviewed periodically. In August 2020, the company launched its 9GB golden goodybag to compete directly with its own 6GB goodybag product, both priced at £10. In August 2021, the company launched a third £10 product, their "Student Golden Goodybag", debuting at 13 GB of data, later increasing to 15 GB.[19] The Student Golden goodybag was retired in July 2022 after one year.[20]

To be eligible to purchase from the selection of "golden goodybags", the member must register a bank payment method and agree to recurring monthly purchases. There is no ongoing commitment and the recur can be switched off or cancelled at will. On 20 October 2020, Giffgaff introduced their "unlimited golden goodybag" priced at £35 a month. At the same time, they announced future 5G access for customers, initially on golden goodybag products, later extended across all products.[21]

In January 2021, the goodybag range was expanded to give more data.[22]

From 24 February 2021, using pay-as-you-go data without a "goodybag" doubled in price from 5p MB to 10p MB.[22]

In April 2022, Giffgaff announced a UK price freeze for the remainder of 2022.[23] In September 2022, Giffgaff announced their UK price freeze would be extended until the end of 2023.[24]

In April 2023, Giffgaff announced a major departure away from their previous business model by introducing 18 month pre-pay contracts for monthly bundles of data, calls and texts named "good contracts". For the first time, customers would be financially penalised for terminating their bundle purchases early, prior to the expiry of their entire contract term.[25][26]

Customer service

Giffgaff does not operate customer service phone helplines. Non-account-specific problems are raised via an online community system and are answered by other Giffgaff members in exchange for "payback points" (a virtual currency). Account-specific queries are directed to "agents", who are contracted by Giffgaff and partnered through Firstsource Solutions to administer all their account matters.[27][28][29] There is a second tier dedicated complaints team, who respond to complaints made by email and from a recorded voicemail. Written responses can take five business days.[30][31] As of March 2023, the contact hours for Giffgaff's agents are 8 am to 10 pm on weekdays, and 8 am to 8 pm on weekends and public holidays.[32]

Educators

Giffgaff use O2 employed remote workers as full and part-time community moderators that they call 'Educators' who monitor and patrol the online community forum.[33][34]

Payback

Giffgaff offers payback points to members who recruit other members and who provide customer service to the Giffgaff community. Previously members who suggested ideas on their Giffgaff Labs platform (which closed in 2021) also received payback points.[35] Payback points can be exchanged for real money, added as airtime credit, or donated to five charities (this option was added in 2020) nominated by members and paid out biannually in June and December. Giffgaff promises to match their members' charitable donations, pound for pound. Giffgaff itself is an old Scottish word for 'mutual giving'[36] and the company states they attempt to maintain that ethos as much as possible.

Super Recruiters

When Giffgaff members have recruited 15 or more new members to join the network, they are permanently promoted to super recruiter status, earning potentially larger rewards depending on their recruit's second and subsequent payments to Giffgaff and ongoing member retention. Super recruiters are also eligible to receive enhanced benefits, such as dedicated email support, marketing materials, phone calls with employees, and visits to Giffgaff's HQ.[37]

Ownership

Giffgaff is a wholly owned subsidiary of Telefónica UK Ltd, which trades under the brand name of O2 UK inside the United Kingdom.[38]

As part of the merger of Liberty Global and Telefónica's UK-based assets, Giffgaff's parent company, Telefónica UK, is now a 50-50 joint venture of these two companies, while Giffgaff remains wholly owned by Telefónica UK.

Network service and infrastructure

4G

As of September 2015, all of Giffgaff's "goodybags"[39] come with 4G data included at no extra cost. If the user doesn't have a 4G ready device or is not in a 4G area, the device will connect to O2's 3G or 2G network instead.

5G

Giffgaff implemented 5G on their "Golden Goodybag" range using their new 5G SIMs[21] on 7 January 2021.[40] Initially, only new 5G SIMs would work on the technology, but later access was extended to existing 4G SIM cards.[41]

Giffgaff's 5G, like all their network services, runs on O2's network. O2 rolled out their 5G network access to O2 customers in October 2019.[42]

Awards

In November 2010, Giffgaff won the Forrester Groundswell Award and was later nominated for the 'Marketing Society's Brand of the Year' award, losing to the department store John Lewis.[43] In December 2010, Giffgaff won the 'Most Innovative Community Award' at the Social CRM Customer Excellence Awards.[44][45]

In June 2012, Giffgaff was named the Best MVNO at the Mobile Industry Awards.[46]

In 2014[47] and 2015,[48] Giffgaff won the Which? best telecom services provider award. In 2018, Giffgaff was a runner-up in the Best Utilities Provider of the Year Awards.[49]

In 2019, Which? reviewed 13 mobile network's customers. Giffgaff was rated the best network by the sample surveyed.[50]

Since 2016, Giffgaff has regularly won the uSwitch Network of the Year award for 5 consecutive years.[51][52][53][54][55] They also won three other uSwitch awards in 2019, for Best SIM Only Network, Best Network for Data, and Best PAYG Network.[56]

In 2022 and 2023, according to uSwitch, the public voted for Giffgaff as the network of the year.[57][58]

Controversies

Unlimited internet

After "goodybags" with unlimited internet allowance were introduced, complaints were made to the Advertising Standards Authority (ASA) from customers who were refused the further sale of unlimited plans. The reason given by Giffgaff for their disconnection was a clause in the terms and conditions stating "[We may disconnect you] if you do anything ... which we reasonably think adversely impacts the service to other Giffgaff customers or may adversely affect the Network". The complaint was not upheld by the ASA who concluded that unlimited internet was advertised correctly. Giffgaff noted that their customer service agents had used the clause above incorrectly and promised to rectify this.[59]

Giffgaff removed the "goodybags" in question and replaced their unlimited internet allowance with an "Always On" data allowance. This means that users will get 80 GB of full-speed data usage but after these 80 GB, will be speed-limited to 385 kbps between 8 am and midnight every day.[60] However on 20 October 2020, the company reintroduced a version of their unlimited monthly (Golden) Goodybag to recurring customers, priced at £35.[21]

Advertising campaigns

In May 2013, Giffgaff ran an online and television advertising campaign with the strapline "Don't be scared", which featured zombies converging on a village. Although the television advert appeared after the 9 pm watershed, the ASA received 105 complaints. The ASA did not uphold the complaints, stating that it was not in breach of any BCAP rules.[61]

In October 2013, Giffgaff ran two adverts in an online campaign with the strapline "Different takes guts". The advert featured a crowd of people dressed in white in an empty swimming pool throwing guts at each other. The ASA upheld the complaints that the content was in violation of BCAP rules for harm and offence, and also BCAP rule 5.2 because the advert was not suitably age rated. It was recommended that the advert not appear again in its current form.[62]

In August 2014, Giffgaff ran three adverts in an online campaign with the strapline "At home with your parents you're not the boss" which featured siblings being subjected to awkward situations with their parents, one of which was reported to the ASA and featured an adult son walking in on his parents as they were engaged in sexual intercourse. The ASA upheld the complaint that the content was in violation of BCAP rule 4.1 for harm and offence and recommended that the advert not appear again in its current form.[63]

References

  1. 1 2 Bradshaw, Tim (3 January 2010). "Original ideas suggest customer knows best". Financial Times. Retrieved 13 January 2010.
  2. ↑ "Case Study: giffgaff". Figaro digital. Archived from the original on 18 January 2016. Retrieved 11 April 2013.
  3. ↑ "We've moved gaff! - The giffgaff community". giffgaff community. Retrieved 1 May 2020.
  4. 1 2 3 "giffgaff Limited Annual Report and Financial Statements". Companies House. Retrieved 6 January 2024.
  5. ↑ "Our brands | Acerca de Telefónica | Telefónica". www.telefonica.com. Retrieved 13 September 2016.
  6. ↑ "GIFFGAFF LIMITED - Filing history (free information from Companies House)". find-and-update.company-information.service.gov.uk. Retrieved 4 November 2020.
  7. ↑ Gallimore, David (6 April 2021). "Telefonica and Liberty Global announce CEO and CFO for proposed UK joint venture between O2 and Virgin Media". Liberty Global. Retrieved 16 July 2021.
  8. ↑ "Giffgaff founder Gav Thompson on zig-zag career in marketing". Marketing Week. 20 August 2018. Retrieved 11 March 2023.
  9. ↑ "About me". Gav Thompson. Retrieved 11 March 2023.
  10. ↑ Mobile Network Comparison (1 June 2019), Giffgaff Review - Goodybags, retrieved 10 September 2019
  11. ↑ Cutlab, Gary. "GiffGaff Goes Semi-Contract With its "Recurring Goodybags"". Gizmodo. Gizmodo UK. Retrieved 15 March 2014.
  12. ↑ Cutlag, Gary (13 October 2011). "GiffGaff Unlocks Tethering Potential With Gigabags Mobile Data Plans". Gizmodo. Gizmodo UK. Retrieved 30 July 2019.
  13. ↑ vespaash. "Announcement of gigabag retirement". community.giffgaff.com. Retrieved 29 April 2023.
  14. ↑ "Tethering policy". Giffgaff. Giffgaff Help.
  15. ↑ Campbell, Matthew. "Giffgaff to launch 4G service in April". Mobile Today, Industry. Mobile Today. Archived from the original on 16 March 2014. Retrieved 15 March 2014.
  16. ↑ "iPhone carrier profile". Giffgaff.com. Retrieved 4 June 2014.
  17. ↑ "Buying a phone is going to look a bit different soon". The giffgaff community. 2 November 2020. Retrieved 3 November 2020.
  18. ↑ Collinson, Patrick (3 October 2020). "Klarna: shopper's best friend or a fast track to debt?". The Guardian. ISSN 0261-3077. Retrieved 29 April 2023.
  19. ↑ Student Golden, Goodybag (July 2021). "Student Golden Goodybag". giffgaff.com. Retrieved 4 August 2021.
  20. ↑ "Announcements". community.giffgaff.com. Retrieved 29 April 2023.
  21. 1 2 3 "Our second golden goodybag is now live - with 5G". The giffgaff community. 16 October 2020. Retrieved 22 October 2020.
  22. 1 2 "Goodybag Changes". community.giffgaff.com. Retrieved 25 February 2021.
  23. ↑ "Cost of living - how giffgaff's UK price freeze could help you". www.giffgaff.com. Retrieved 7 April 2023.
  24. ↑ "Giving you peace of mind for another year". www.giffgaff.com. Retrieved 6 April 2023.
  25. ↑ Jackson, Mark (3 April 2023). "Giffgaff to Launch Cheaper 18 Month UK Mobile Contracts". ISPreview UK. Retrieved 5 April 2023.
  26. ↑ "Good Contracts". community.giffgaff.com. Retrieved 5 April 2023.
  27. ↑ "Firstsource Solutions unveil £1 million investment in Belfast". GOV.UK. Retrieved 29 April 2023.
  28. ↑ "Firstsource and giffgaff win two awards at National Outsourcing Association's Outsourcing Professional Awards". Firstsource. Retrieved 29 April 2023.
  29. ↑ Team, NIJobs com (16 March 2016). "giffgaff renews contract with Firstsource". NIJobs Career Advice. Retrieved 29 April 2023.
  30. ↑ "Giffgaff Article". www.giffgaff.com. Retrieved 30 April 2023.
  31. ↑ "Has giffgaff become too popular for its own good? – CNET". CNET. 12 December 2011. Retrieved 28 April 2014.
  32. ↑ "Agents Closing Early". community.giffgaff.com. 10 March 2023. Archived from the original on 11 March 2023. Retrieved 11 March 2023.
  33. ↑ "Announcements". community.giffgaff.com. Retrieved 29 April 2023.
  34. ↑ "Tips". community.giffgaff.com. Retrieved 29 April 2023.
  35. ↑ "giffgaff". www.giffgaff.com. Retrieved 1 May 2020.
  36. ↑ "Meaning for giffgaff". Webster's Dictionary. Retrieved 31 July 2020.
  37. ↑ "giffgaff - Super Recruiter". www.giffgaff.com. Retrieved 1 May 2020.
  38. ↑ Annual Report and Financial Statements (Year ended 31 December 2020). p. 7.
  39. ↑ "SIM Only Deals and Plans | giffgaff". www.giffgaff.com. Retrieved 5 September 2015.
  40. ↑ "5G Availability on Giffgaff". community.giffgaff.com. Retrieved 8 January 2021.
  41. ↑ "giffgaff - Home". www.giffgaff.com. Retrieved 1 May 2020.
  42. ↑ "What will happen with 5G on giffgaff?". The giffgaff community. 2 August 2019. Retrieved 1 May 2020.
  43. ↑ "Winners Of The 2010 Forrester Groundswell Awards (Consumer International) | Forrester Blogs". 23 March 2014. Archived from the original on 23 March 2014. Retrieved 27 March 2019.
  44. ↑ Elliot, Nate. "Winners Of The 2010 Forrester Groundswell Awards (Consumer International)". Forrester blog. Forrester Groundswell. Archived from the original on 23 March 2014. Retrieved 23 March 2014.
  45. ↑ giffgaff: winner of Most Innovative Community award (20 May 2010). "Social CRM Excellence award". Community.giffgaff.com. Retrieved 23 December 2010.
  46. ↑ "Winners 2012". Mobile Industry Awards. Mobile Today. Retrieved 27 August 2012.
  47. ↑ "Which? Awards 2014 winners revealed". Which? News. 18 June 2014. Retrieved 7 May 2020.
  48. ↑ "Which? Awards 2015: the shortlist revealed". Which? News. 16 April 2015. Retrieved 7 May 2020.
  49. ↑ "Which? Awards 2018: winners revealed". Which? News. 23 May 2018. Retrieved 7 May 2020.
  50. ↑ "Best and worst UK mobile phone network for 2019 revealed". inews.co.uk. 24 April 2019. Retrieved 25 February 2021.
  51. ↑ "uSwitch Reveals the Best UK Mobile Operators in 2016 Awards - ISPreview UK". www.ispreview.co.uk. 11 February 2016. Retrieved 27 March 2019.
  52. ↑ "uSwitch Name the UK Best Mobile and Broadband Providers in 2017 Awards - ISPreview UK". www.ispreview.co.uk. 3 February 2017. Retrieved 27 March 2019.
  53. ↑ "uSwitch 2018 Awards Name the UK Best Mobile and Broadband ISPs - ISPreview UK". www.ispreview.co.uk. 9 February 2018. Retrieved 27 March 2019.
  54. ↑ "uSwitch 2019 Awards Reveals Top UK Mobile and Broadband ISPs - ISPreview UK". www.ispreview.co.uk. 8 February 2019. Retrieved 27 March 2019.
  55. ↑ "Uswitch 2021 winner". www.giffgaff.com. Retrieved 25 February 2021.
  56. ↑ "giffgaff scoops four gongs at Uswitch Awards, including Network of the Year". uSwitch Mobile Phone Deals. Retrieved 7 May 2020.
  57. ↑ Jackson, Mark (18 February 2022). "Uswitch 2022 Awards Reveal the Best UK Mobile Operators". ISPreview UK. Retrieved 11 March 2023.
  58. ↑ "Uswitch Telecoms Awards 2023". Uswitch. Retrieved 11 March 2023.
  59. ↑ "ASA Adjudication on giffgaff Ltd A12-192632". Adjudications. Advertising Standards Agency. Retrieved 28 October 2019.
  60. ↑ "SIM only Deals". giffgaff. Retrieved 28 October 2019.
  61. ↑ "ASA Adjudication on giffgaff Ltd A13-248779". Adjudications. Advertising Standards Agency. Retrieved 15 March 2014.
  62. ↑ "ASA Adjudication on giffgaff Ltd A13-248779". Adjudications. Advertising Standards Agency. Retrieved 15 March 2014.
  63. ↑ "ASA Adjudication on giffgaff Ltd A14-277947". Adjudications. Advertising Standards Agency. Retrieved 21 November 2014.
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