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Tuesday, 6 September 2011

Changes to call and text prices

Latest news from the giffgaff blog

Changes to call and text prices
by tom on 06-09-2011 12:27 - last edited on 06-09-2011 12:46

For the last two weeks we have been having a very important consultation with our members. This discussion has been regarding a price increase to our standard UK call and text rates. To encourage participation we sent all our members a Newsfeed to highlight the consultation. Before any decision was made we wanted to discuss this with our members to get their thoughts and views. With over 150 pages we have now reached the end of the two week consultation period.

As Vincent posted last week as a part of the consultation, taking on board feedback, it was looking likely we would increase to 10p per minute for UK calls to landlines and mobiles per minute and 6p per UK texts to mobiles and landlines. I can today, confirm that is the case.

From today we are sending out texts to all members highlighting the price changes and directing them to this blog for more information. We’ll then wait 30 days (from today) before implementing the price change on 6th October.

So to recap, from the 6th October 2011;
Calls from your giffgaff mobile to other UK landlines and mobiles from the 6th October 2011 will be 10p per minute (an increase from 8p).
Texts from your giffgaff mobile to other UK landlines and mobiles from the 6th October 2011 will be 6p per text (an increase from 4p).
Call forwarding from your giffgaff mobile to other UK landlines and mobile from the 6th October 2011 will be 10p (an increase from 8p). As Calling forwarding should be the same price as calling mobiles and landlines this has also been increased.

None of the goodybags or other call rates (including voicemail) are affected by any of these changes and our Terms and Conditions on usage remain the same.

How do we compare from 6th October.

This has not been an easy decision. When we first launched we only had 8p calls and 4p texts, after which we together with the community, first discussed and then launched our goodybag range making us more competitive. The goodybags are giving our members value where they wanted it and they are the most popular product we offer - with 86% of members who used their phone in July being, or being better off, on a goodybag. With our members, the role of unlimited data has also proved extremely popular with our members as have free giffgaff to giffgaff calls. All our products are used to a great extent, from free giffgaff to giffgaff calls, to unlimited data, to using the full extent of calls available on the goodybags, so we don’t get an upside from the unused minutes, unlike many other networks.

We will continue our Best Plan e-mails. And as part of our monthly best plan recommendations we'll be including the best plan once the price changes come into effect so our members can continue to get the best value

We are a new business and significant investment has been made into giffgaff and we haven’t yet broken even on that investment. On top of this, at the start of the year, mobile termination rates have gone down and will continue to do so throughout 2012 as part of an EU initiative. Like all networks this directly affects our profit and will continue to do so.

To grow giffgaff needs to be a profitable business. We want to put that profit back into the business on things such as; product development, innovations, Payback, Marketing, Ideas board, to name but a few. We continuously assess our prices and business decisions, making sure we are making the right ones and investing in the right areas of the business.

As I said, I’m sure you can understand that this has not been an easy decision but one that is necessary.


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