In recent news, the mobile carrier, FreedomPop has announced that they have recently raised $30 million to grow their free mobile service. This 4-year old company is now taking on national companies that have been around for years. FreedomPop, offering a free package that includes free texting, free data, as well as free calls, has as of recently, been beating out other competing mobile carriers.
What makes FreedomPop so popular is the fact that the mobile plan is free to subscribe to. This LA-based company has been surpassing its competitors because of this offering. Skype founder, Niklas Zennstom has been one of the lead investors in this company and is now being followed by several other investors. Within the last few years, all investors included have raised close to $50 million for the FreedomPop company.
By the third quarter, FreedomPop has a set goal of hitting over 1 million subscribers. What makes this company so different is that it is a mobile virtual network, meaning the network does not own any wireless infrastructure. This new company is attracting many customers through the fact that the user receives 500 MB, 200 voice minutes as well as 500 text messages. If the user has used all their data and minutes for the month, they can either pay for more or wait for the plan to be replenished. FreedomPop is making their money not from the data plans but from offering quality services on top of the free data.
In addition to getting free data and minutes, if there are any left over minutes or data by the end of the month, they are then added onto the next month. Not only does this carrier offer free minutes and data but offers them globally.