CUG is an acronym that can contain many meanings which are listed below.
CUG – Closed User Group
There may be many popular meanings for CUG with the most popular definition being that of Closed User Group
More CUG Definitions
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CUG means Closed User Group
It means that its probably a Corporate / Company Connection, and you can speak to the other people within your group either free or cheap (can be as low as 10p, or whatever your plan states).
Moreover, before calling the group users, do check their numbers are mentioned in this CUG group or not. Otherwise u would get charged at a local call rate according to your plan.
Having a CUG benefit is a very good feature. It saves on costs, that is if you do bulk calls within the group. Or you can use it to place before your TV set at home, and your colegues can listen to the cricket / football commentary during their lunch hour.
Its sad that GSM service providers do not offer this facility to each and every like the CDMA guys do