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FreedomPop Begins Licensing Its Technology, A USA Carrier Partner Will Soon Be Announced

FreedomPop Free Talk, Text and Data
FreedomPop Offers Free Talk, Text, and Data
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FreedomPop is an MVNO that has historically operated on Sprints network, but recently it has added service via AT&T as well as through some global partners.  The companies claim to fame is that it offers completely free phone service with a plan that includes 200 minutes of talk, 500 text messages and 500 MB of data.

The company uses its free service model to aggressively push customers towards paid service with a higher revenue stream.  FreedomPop's free service model offers voice calling via VoIP, or in other words through a data network as opposed to a traditional cellular voice network.  This allows the MVNO to save money as it purchases wholesale data from major carriers at a fraction of the cost that traditional voice minutes cost ((sourced via Forbes)).

FreedomPop has announced that is has begun licensing its proprietary monetization platform with its first partner being Italy's largest carrier, Wind-Hutchison.

Wind-Hutchison intends to use the platform to grow its user base through digital channels as well as to increase its average revenue per customer through the upselling of services.

FreedomPop's CEO Stephen Stokols had the following to say about the new partnership:

"Extending the underlying capabilities and technology that have enabled FreedomPop to deliver 50 percent service revenue margins on a freemium model will accelerate industry disruption on an unprecedented level, ...... FreedomPop is excited to power the more progressive carriers willing to embrace innovation."

FreedomPop has said that it plans to announce a similar deal with a major US carrier in the coming months as well as agreements with more carriers in Asia and Europe.  I would not be surprised if the major US carrier ends up being Sprint, as RingPlus recently unveiled in their lawsuit against Sprint, that the carrier is in fact interested in developing alternative revenue models and perhaps low cost service.

Thus far in its existence, FreedomPop has been able to gain a lot of financial support, having secured over $109 million to date.

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