FreedomPop has already started to change the mobile communications market with their ‘free’ services, and they continue to grow with the demands of their customers. The company has recently received investments totaling $50 million from a private investor to help reach new demographics and launch new, international products. FreedomPop will provide one-time purchase hot-spots that can give free data to users in over 25 countries, and they will also sell SIM cards for a small initial fee that can access free calls and data throughout many regions of the globe, starting in Europe.
FreedomPop CEO Stehpen Stokols has not yet revealed the source of the investment, stating that the investor is a large private-equity group in the process of negotiating their acquisition of another company to integrate with FreedomPop. It has been rumored that this same investor is also working with Uber, a transportation company valued over $60 billion.
Even without help from investors, FreedomPop has been making serious headway in the communications industry. Their practice of supplying all communication services through data allows them to be much more flexible in their pricing, sometimes only charging for physical products and more advanced services. They aim to make the most basic services free, as long as you have the device to take advantage of those services.
What makes FreedomPop different from other MVNOs is that they only buy data from carriers instead of data, messages, and minutes, like most other virtual operator companies. Additionally, they don’t prepay, meaning that their customers get the lowest price possible without having to worry about overuse charges. By taking advantage of this technology, FreedomPop has started to work with their data suppliers to create more useful, customer-friendly networks, and by doing so they have increased their own brand awareness and revenue stream.
According to Stokols, the expansion of FreedomPop into the global marketplace has been met with open arms. They already experience a conversion rate of about 45 percent, noting that at least 30 percent is required for success. Currently, SIM cards for the UK market are sold out due to their popularity. It has been estimated that over 1 million UK users will exist within a year, and the total number of current users is already well over 1 million, in both the US and UK markets.
FreedomPop plans to continue expanding into new markets, and its technology will keep advancing to meet the ever growing demands of the customers. The plans is to enter at least 40 countries by the end of the year.