FreedomPop is a phone operating service that offers its customers free data and voice plans. The company estimates that it will have over 1 million users by the end of 2015, only three years after it was founded. According to an online article written by Fortune, it recently ended a round of fund raising after pulling in about $30 million. FreedomPop’s staggering rate of growth is causing larger national carriers to tremble. Unlike other phone service company’s, FreedomPop doesn’t own a wireless infrastructure. Instead it is a mobile virtual network operator, this means is has to purchase its data from another source, primarily Sprint.
FreedomPop buys data at $1 per 100 MBs and fronts the cost in hopes that its customers will buy one of their many premium packages. These packages include anything from anonymous internet browsing, to roll over plans, to phone insurance. They even have international calling for those who are always traveling out of country. These additional plans cost an average of $6 dollars a month. With over half of the phone operating service’s users purchasing packages, they easily front the cost for being free. FreedomPop also makes their money off of people who go over their monthly limit of 200 voice messages, 500 text messages, and 500 MB of data. It costs users 1 cent for very message and 2 cents for every megabyte of data.
It seems like a small amount but it can add up if customers aren’t paying attention to their usage. There is also the $20 unlimited plan for those who think they may go over the set limit. With how fund raising and sales have been doing the company plans to make even more innovations. FreedomPop hopes to be able to increase their monthly limit to 800mb, 400 voice messages, and 100 text messages with in the next few years.