Since its inception in 2012, FreedomPop has steadily grown as a viable competitor in the cellular industry. The free service has gained the trust of the consumer market and it has single-handedly kicked the telecommunications door wide open. FreedomPop has made it possible for consumers to swap out their high-price contracts for a free, no obligation, cellular plan.
Competitors dislike FreedomPop because they let subscribers use their own cellular device, or subscribers can purchase a smartphone or tablet directly from FreedomPop. FreedomPop’s free cellular plan and affordable premium services are attributed to a few factors, such as FreedomPop being a “mobile virtual network operator,” which means they do not own any wireless infrastructure; rather, FreedomPop purchases data blocks from Sprint at wholesale prices and allocates them to FreedomPop subscribers.
FreedomPop is shaking up the cellular industry by offering plans that are hard to compete with. They offer free talk, free text and free data with the FreedomPop basic subscription plan. The basic plan has limitations of course – 200 talk minutes, 500 texts and 500MB of data per month, but these limitations are not really limitations at all, for customers can pay extra to go over their minutes, or they can upgrade their service plan to an unlimited $20 per month talk, text and data plan.
FreedomPop is growing on a global scale and expanding their services into the United Kingdom as a SIM-only provider. SIM-only subscribers provide their own cellular device, but they still get access to all of the standard and premium features that FreedomPop offers. In addition, UK customers can make calls to over 60 countries without incurring international rates.
Actually, FreedomPop has raised over $30 million dollars within the past year from investors in the U.S. and Europe, and they plan to raise an additional $50 to $100 million dollars in 2016. The company plans to use the investment funds to expand into Latin America and Europe in addition to strengthening its customer service and marketing departments. FreedomPop’s CEO, Stephen Stokols, claims that the current goal of the company is to stay independent and generate over a billion dollars in revenue.
Even with low-rate add-ons and below-market costs for a FreedomPop unlimited plan, the company is still generating tremendous revenue that is close to $50 million per year with almost 1 million active subscribers.