$5 a month unlimited access to the Internet is too cheap? FreedomPop will soon launch wi-fi service in the United States, use the uncapped, hot spots all over the country, and the costs only $5 a month. FreedomPop said the company’s marketing strategy is: with high cost performance, low profit “grab” the customer service and other operators.
FreedomPop is an emerging mobile virtual network operators, by Skype’s founders Niklas Zennstrom, it is trying to provide free basic cellular voice and data plans to gradually drew in other mobile clients of the company. Recently, there has been a new FreedomPop plan: they are about to launch low-cost wi-fi service, users can be unlimited use and automatic login the national 10 million wi-fi hotspots. And to use the service, need only $5 per month.
FreedomPop reference data, according to mobile phone users in data usage wi-fi accounted for 90%. Its latest launched the service is for those who provide LTE services at a high price poses a potential threat to operators, because of their habits are the same, in view of the customer and its use as FreedomPop apparently cheap.
CEO and co-founder Stephen Stokols said, in the initial stage, will cover 10 million hot spots, covers nearly 120 million people and 100 cities in the 65% to 90% (this means to the NFL, NBA cities of this kind of motion), the Numbers will be the end of the first quarter to 25 million.
the wi-fi service can be used in a variety of devices of users. It first in FreedomPop Android and iPhone applications (have not yet been completed) in the form of a launch, is expected to launch in the next few weeks. He also mentioned that the product of the automatic service function is far from the level of Google or some. , he said to call’s threat to make FreedomPop existing mobile operators, “iOS quite closed, compared with Google to realize the seamless connection of wi-fi, which also makes operators under threat.” He also added that they did not intend to launch WP application.
this is the first time FreedomPop in adding wi-fi service packages. “We’ve been looking forward to make a very attractive product itself, the wi-fi user experience can like mobile network (to be automatic), rather than rush out a will let the user use once lose interest in service.” Stokols said. He also claimed that FreedomPop plan of the new service in our users reached 1 million, and each quarter back hundreds of thousands of new users.
in terms of restrictions for the purpose of, FreedomPop don’t indicate the supplier of the wi-fi. As to where the user can even on wi-fi, Stokols told me in McDonald’s and Starbucks, Burger King and Best Buy these large retailers will be in the coverage area. (note: cloud network editor King hunting that seemed to hint that with FreedomPop teamed up with at least two companies, because the web is provided by Google, Starbucks and Burger King and McDonald two providers are AT& T.)
we have learned that Boingo costs not FreedomPop partners. But if the number of wi-fi hot spots in the late this quarter rose, it cooperates with FreedomPop is a possibility.
for the following two reasons, FreedomPop providers are curious. The first is that if you have already bought wi-fi hotspots in provider service, maybe you are more likely to continue to use the existing services, not to buy FreedomPop package. The second is, according to a recent OpenSignal survey, some of the provider network speed are much faster than other operators.
so far, FreedomPop business model is based on the supply of free but limited service (it is only 200 minutes free calls, 500 free text messages and a monthly 500 MB of data plan). Want to use voice mail, or increase the dosage of package, you have to pay. Stokols said he does not think wi-fi service are the extension of the business model, but a separate service, is another one of the ways to attract new customers, regardless of whether they are customers of other operators.
“it is a perfect opportunity to convey to the users of our service value, no matter which operators are now they customer”, he said, “for example, cost $5 a month, you can buy less half of cellular data. Now you only need to the flow of $300 package, so you no wi-fi in the 5% to 5% of time surfing the Internet.”
that there are no other on the market? Of course, another for customer base is the man who has a mobile phone but not connected to the Internet.
Stokols: “we have hundreds of thousands of” discarded “(refers to those who are not use cellular data network of mobile phone), the owner of the mobile phone to open FreedomPop service, but because they didn’t join the Sprint (American telecom operators), we are unable to help them to activate cellular data.” This is because the FreedomPop through a MVNO (mobile virtual network operators) company make a deal with Sprint. “It also gives us the opportunity to provide customers with cost-effective services, because the wi-fi package service to get the ‘discarded’ place, they can be in more places on the Internet now.” Stokols estimated, now there are about 200 million in the United States’ discarded mobile phones.
but on the other hand, although the company profitable in the service, but Stokols admitted that its profit is low.
FreedomPop Los Angeles headquarters has raised $190 million, investors including Skype founders Niklas Zennstrom under vc firm Atomico ventures, investment the first Mangrove DCM and Skype. FreedomPop also trying to expand the company scale and plan in this year will be the service to Europe.