O2 launches Giffgaff - a new SIM only mobile network

The new network, named Giffgaff, has positioned itself as a ‘people-powered’ mobile network, using online recommendation activity and product innovation to reward customers with money off their mobile bills.

Similarly to Virgin Mobile, Woolworths, DoDo and TPG here in Australia, Giffgaff will work off the back of O2’s network but will not highlight the O2 brand.

Giffgaff, which is an olde worlde word that means ‘mutual giving’, will operate on a low cost base and offers fixed rate SIM only tarrifs and a range of online tools to allow members to suggest answers to each other’s questions in online user groups. To join, customers need to simply purchase a SIM card at an initial top-up fee of 10 pounds.

Members will then be rewarded for things like referring Giffgaff to a friend, creating user-generated marketing, or voting on business decisions. The more that members get involved, the more money they will get off top ups.

The basic idea behind this new network is to keep telecommunications as simple as possible while adding a social element into the mix to generate interest and to promote the new offering.

Here’s Giffgaff’s explanation as to why consumers should give them a go:
• One simple tariff for voice, text and data.
• We’re online only, which saves us money, which means we can offer you brilliant prices.
• Your calls become cheaper the more you get involved.
• There's no long-term contracts and you can use any existing ‘unlocked’ handset.
• The option to donate your rebate to a charity or cause you care about.
• Play a role in deciding what services we offer.

Giffgaff launches before Christmas 2009 with the pricing model and other unannounced features and benefits to be revealed. Customers can’t preregister at this time, but can leave their email address to receive updates.

Interesting idea and certainly one to watch.

Brand Republic.
Marketing Magazine.  
Mobile Industry Review.

Indian Farmer's Control Water Pumps With Their Mobile Phone

This is a classic example of how Indian Mobile Operator, Tata Teleservices are using innovative mobile technology to help people in rural areas.

Using a wireless automation system called Nano Ganesh, farmers are able to monitor and switch on irrigation pumps remotely.


Farmers would usually walk kilometres to water their crops, but due to India's erratic power supply there's often no electricity available to power the irrigation pumps. Now, farmers can simply dial a code from any phone to a wireless receiver attached to the pump's starter, which then tells the farmer if there's electricity available and if gives them a choice to turn the pump on or off.



The service is currently being trialled and costs $56 (US) for the system, plus mobile phone costs.

Website: www.nanoganesh.com

Nokia to Launch Mobile Bank Accounts in 2010

It's been confirmed that Nokia will enter the mobile banking market in 2010, after they recently purchased a stake in the mobile payments company Obopay. The launch of Nokia Money will allow users to pay for products, pay bills, top-up SIM cards using their mobile phone. It will also allow customers to send money to their mates just by using the person's phone number.

In amongst their plans, Nokia will aim to build a network of Nokia Money agents, or Automatic Teller Machines (ATMs) to be more flexible with their customer base.

Although Obopay already exists in a WAP format (see the iPhone demo below), Nokia predict that mobile payments will be the next big thing in the financial services industry.



Nokia could bring banking access to hundreds of millions of people, both urban and rural, who are undeserved by existing payment means, especially in emerging economies.

As Mary McDowell, Nokia executive, said:

"In many countries, mobile phone ownership significantly exceeds bank account usage, suggesting that many mobile phone users have very limited or no access to basic financial services. With more than 4 billion mobile phone users and only 1.6 billion bank accounts, global demand for access to financial services presents a strong opportunity to combine mobile devices with simple but powerful financial services such as Nokia Money."

The service will be available across different operator networks and on virtually any mobile phone, rolling out in Germany in September, before launching in specific markets in 2010.

What are the other benefits to consumers and opportunities for Telcos?

• This could significantly increase the use of mobile devices in general.
• Potentially break the age barrier of under 18y.o. Pre-Paid customers who don't own a credit card, to recharge their service on the run.
• Safety or convenience - send someone in need, money for extra credit, or to catch a cab late at night, or even in case you just need an extra $10 to buy that thing in the shop window.
• Gift - even though its still more exciting to get money from your Grandma when its tucked away in your birthday card, Grandma could instead get all tech savvy and send you money via her mobile phone. Wow, what a treat!

I'm sure there are many other benefits and opportunities, so if you think of any, please leave a comment.

Cheers,
Greg

Read the original article by Dan Leahul from Brand Republic 28 August 2009.