giffgaff mobile network

Stuart_W

spadge_2356 wrote: »

In several forums I have noticed that people have commented that GiffGaff is part of the 02 network (telefonica) if this is the case why is this not stated on GiffGaff's website? There is no mention or connection to 02 mentioned, not even in the GiffGaff forums! However it does state that it USES the '02 signal'.
In the case of the phone co-op it says that it uses the 'orange network'

Therefore my next question is; what is the difference between using another company's signal/network and being owned by the network as a subsidiary (EG I know Tesco uses the 02 network but does that mean the are owned by 02?). Does using the networks signal mean the company is owned by the network it uses?

I'm slightly confused.

Thanks,
SPADGE_2356

Good question.

I would choose to say that Giffgaff is merely a branding style of 02. It is a Telefonica company, wholly owned by the same company that owns 02. Therefore, it is similarly owned by shareholders whose sole purpose of ownership is profit. The about us page confirms ownership by Telefonica.

The Phone Co-op, on the other hand, is a MVNO (Mobile Virtual Network Operator) - this is like TescoMobile, AsdaMobile, VirginMobile, FamilyMobile, TalkMobile, Siminifi and oodles of others knocking about. They have made a wholesale arrangement with one of the network providers and resell their own services, under their own branding.

Giffgaff could be descibed as being like a MVNO that is owned and run by one of the actual network operators. All the gubbins about "community run" in my opinion is just identity branding and represents an online-based approach, but has nothing to do with community ownership. It has lower overheads as it aims to be an online-based service with other customers helping each other out (I prefer to avoid the term "member" as this implies "membership" in the style of a co-operative society. Members get to vote in co-operative societies, elect the board and so on. I don't really see any evidence of this member-control in giffgaff. All companies listen to their customers, if they didn't they'd be unlikely to make much of a profit).

Only four actual network owners exist currently - Three, Vodafone, o2 and Everything Everywhere (T-mobile/Orange). The truly prohibitive cost of setting up a network means no one else will set on up.

Does this help?

dangerman7uk

spadge_2356 wrote: »

• Am I paying money into the fat-cats pockets
• How much effort is put into helping charities
• Is the customer service excellent
• To what degree can members control the network

I know others have answered, but I would answer this way:

*Yes, rich people are getting richer.

*Probably not very much at all, but this is irrelevant if you want to save money. They do more for charity than the major networks at least.

*Customer service isn't required in the usual sense. It's pay as you go, so there is no need for bills and problems are almost non existent. If you have a problem with something, just stop paying them. If you want something spelling out for you because you don't understand - forums.

*Zero. The members and forum reps are only there to reiterate and help people understand the very simple system that is in place.

jenhug

at the bottom of the home page on giff gaff it states it is o2 network

spaceboy

I've been using giffgaff it's saving me loads of money compared to Vodafone who I was with before.

JJ_Egan

spaceboy wrote: »

I've been using giffgaff it's saving me loads of money compared to Vodafone who I was with before.

Likewise and it helps me be a fat cat capitalist tory !!!!!!! .

Charity if always give my old very expensive shirts to my cleaner as they make excellent dusters .

jje

Guys_Dad

The whole point that many people who take a simplistic view of companies making profits is that a huge proportion of the shareholders in major conglomerates are Insurance companies and Pension Funds - far more than fat cats.

If these large companies fail to make sufficient profits, they can't distribute dividends and, in consequence, any one with life insurance or pensions will be adversely affected.

Just a factor that should be kept in mind.

c-m

Something being a co-operative, doesn't necessarily mean it's run ethically. It's just another form of business structure like LTD, PLC, Parternership etc..

payless

it is not from the benevolence of the butcher, the brewer, or the baker that we expect our dinner, but from their regard to their own interest.

by pursuing his own interest he frequently promotes that of the society more effectually than when he really intends to promote it.

Adam Smith

Guys_Dad

The more I think about the question originally posed, the less I seem to understand what OP means by ethics.

For example, I can understand the ethical stance of a pharmaceutical company not testing on animals, fashion chains not using sweat shops and cheap child labour or Oil companies putting money into green solutions and re-establishing the environment.

Bur Giff-Gaff are a mobile provider that relies upon the O2 network and operate, I believe, in the same way that all the energy companies do with gas and electricity by bulk buying from the host and selling on cheaper to its users.

So, Giff-Gaff have a financial model that allows them to undercut O2, but are totally at the mercy of O2 re it's purchase price from them.

The only sway I see they have is to alter their financial model within the cost structure of O2 pricing.

Are they a part of O2? I don't know. Is running at a smaller profit margin and benefiting users equal to working ethically? Not in my definition of ethically.

So, OP, what exactly do you mean about their "ethical policy"?

rejsystems

From Companies House webcheck, see previous names so definitely owned by o2.

Name & Registered Office:
GIFFGAFF LIMITED
260 BATH ROAD
SLOUGH
BERKSHIRE
SL1 4DX
Company No. 04196996


Status: Active
Date of Incorporation: 09/04/2001

Country of Origin: United Kingdom
Company Type: Private Limited Company
Nature of Business (SIC(03)):
9305 - Other service activities
Accounting Reference Date: 31/12
Last Accounts Made Up To: 31/12/2009 (FULL)
Next Accounts Due: 30/09/2011
Last Return Made Up To: 09/04/2011
Next Return Due: 07/05/2012
Last Members List: 09/04/2011
Previous Names:
Date of change Previous Name
08/09/2009 O2 ASH LIMITED
10/11/2008 O2 COMMUNICATIONS LIMITED