Yesterday saw the launch of giffgaff, a UK ‘people-powered’ service that claims to rely on its community of customers to help evolve the operation and will reward members for their input. “We’re the mobile model of the future,” proclaims the company’s website. “giffgaff payback is how we recognise and reward all the nice things members do to help us out,” adds a company blog. “With payback you earn points for helping out giffgaff – you can get someone else to join, help another member with their giffgaff queries or help our marketing team with ideas, website content or ad production. Each point is worth a penny and you can convert them to cash, mobile credit or a charity donation twice a year.” For example, getting someone to join giffgaff by giving them a SIM card will earn 500 points or £5 for the existing member.

The service uses O2 UK’s network and is actually a subsidiary of the country’s largest mobile operator. Not that it contains any element of the O2 brand. Instead, it proudly boasts that the service aims to offer “the most honest and transparent mobile network.” Prices are low; calls to UK mobiles and landlines cost £0.08 per minute and texts will be £0.04. Most calls between giffgaff phones are free. Web browsing will be free at launch, and the company will “listen” to user recommendations on data charging when it introduces charges next year. With no retail outlets, the operation is online only, and there are no long-term contracts. giffgaff provides the SIM card, although not the mobile device.