Giffgaff: Mobile phones another way

For the first time in many years there is a mobile phone network in the UK that is offering something that makes sense to me.

 

It’s not one of the big names like EE, Three or Vodafone but one of the smaller virtual network providers who have decided to do it differently.

 

This network is doing what Virgin did when it was launched by offering fantastic value for money call rates that are unmatched in the UK at the moment but also adding on a little twist or two in the way you purchase new mobile phones.

The Giffgaff proposition

 

First let me quickly cover those low call rates I mentioned above. At the moment the major networks in the UK are pricing out of bundle calls extremely high.

 

In fact they are so high that you could easily add hundreds of pounds onto your bill very quickly should you use up your free minutes or texts.

 

To highlight the point further I have included below the out of bundle call charges for Giffgaff users next to those of the network giant Vodafone.

 

Vodafone Giffgaff
Calls 45ppm 10ppm
Texts 18p 6p

 

But, the part of the Giffgaff offering that caught my eye was the way that the package is put together.

 

The first thing you need to do is pick the smartphone you want to buy. This can then be payed for either in full at the start of the agreement or its value can be broken down into monthly installments over 6 months or up to 24 months.

 

Next you need to choose your tariff with monthly line rentals starting from £7.50 per month.

 

Giffgaff goodybag plans

 

When you add the monthly payment for the phone and the tariff together you will get a line rental that is similar in price to what the major networks are offering.

 

The difference is of course though that once you have paid for the phone that element of your monthly billing is dropped so all that you continue to pay for is your tariff which could be as low as £7.50 per month.

 

There is still one final twist in the Giffgaff story and this is that paying the monthly tariff element every month isn’t compulsory! In fact you only need to buy new minutes and texts once in every three months to keep those fantastic call rates.

 

Verdict

 

Okay so talking about the ins and outs of tariffs and mobile phone contracts isn’t the most thrilling subject in the world but I like the way Giffgaff have put things together.

 

The proposition is a cross between contract and pay as you go. So just like with pay as you go you can top up your free time when you need to but still get the benefit of a contract where you can pay back the value of your new smartphone over 24 months.

 

You might ask ‘is Giffgaff any good?’ but when you consider that the network signal is actually provided by O2 then you should see that there is nothing standing in your way when considering Giffgaff as a potential company to buy your next mobile phone package from.

 

Giffgaff is also a great choice if your credit rating isn’t so great as they only perform a ‘soft’ credit check which has no impact on your credit score as the financing for the phone you purchase is provided by the RateSetter scheme.

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