FreedomPop’s Free Mobile Service

In a recent online article Fortune’s published information on FreedomPop’s free mobile service. The fairly new, LA-based mobile operator is fighting back against all the well known national carriers by generously giving free voice and data plans to their users. This has caused thousands of people to switch to FreedomPop since it launched in 2012. They expect to reach over 1 million users by 2016. Just recently the start-up company has just finished raising $30 million in funds, adding to the $49 million made in the past 3 years. Many bigger companies have tried to acquire FreedomPop but to no avail.

FreedomPop doesn’t actually own a wireless infrastructure, it is a MVNO, short for mobile virtual network operator. Instead of making its own data it buys it from other companies such as Sprint at wholesale rates. The company has to deal with the bulk of the cost, but in turn the deals have been irresistible to users. People who are looking to join FreedomPop either have to buy older model Sprint phone and connect it to FreedomPop’s network or buy FreedomPop phone. Once activated users have 500 text messages, 200 voice minutes, and 500 MB of space each month for free. If a customer were to go over these set amounts all they have to do is buy more. It costs 1 cent for every text message or minute for going over and 2 cents a megabyte for going over. Users can also get the $20 unlimited plan.

Most of FreedomPop’s revenue comes from their premium packages. Some of these packages include phone insurance, rollover plans, anonymous browsing, and international numbers. These add-ons can cost anywhere from $3 to $10 every month. Based on information from Stephen Stokols, CEO and co-founder of FreedomPop, about half of the company’s customers have at least 2 of their premium packages.

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