The UK’s first-ever “people powered” mobile phone network is to launch later this year, offering customers a say in the business as well as financial rewards for their input.

Dubbed GiffGaff, the operator is to invite customers to provide feedback online to help shape the future direction of the business.

The company, which is a subsidiary of O2, will offer bill rebates and free airtime to consumers who bring in new business by encouraging friends to join as well as those who are especially receptive to inquiries.

Mike Fairman, head of GiffGaff, said: "There is so much collaboration already on the web that we wanted to see whether we could harness the enthusiasm people have online, take that idea and get a bunch of mobile users together and launch a business that is people-powered.

"The idea is simple: the more you do, the more you get back."

GiffGaff will be a SIM-only service, with customers signing up for 30-day rolling contracts, and will go live before the end of 2009.