The community-based MVNO, Giffgaff, launched their first range of mobile phones last week. This marks a significant change in their strategy as it was known to be an operator without any customer service or any distribution channel – a pure SIM-only PAYG SIM card provider. However, right now this O2-backed MVNO has introduced a range of phones business for their customers.
Currently, Giffgaff’s offer includes such smartphones as Samsung Galaxy S4, Lumia 925, HTC One or Blackberry Q10. It means that apart from an iPhone, the MVNO has all upmarket handsets in offer. All phones are available in a PAYG deal, which means you need to buy a ‘goodybag’ bundle for £10 and the phone will come with Giffgaff PAYG SIM card. If you don’t want to pay the whole amount for the handset at once, there is a possibility to get instalments. This comes with a pleasant twist, as it is usual with Giffgaff. The instalments are offered in cooperation with a peer-to-peer lender RateSetter. This solution connects borrowers and lenders, cutting the banks out of the deal. Thanks to RateSetter customers will get a very good instalment deal without too many additional costs or too high interest rate.
All in all, introduction of a handset range that offers modern phones in a PAYG model at an affordable price may help Giffgaff boost its customer base and increase the market share.