Along with their announcement, FreedomPop also talked about the $50 million they have received in additional funding. With this, they have been able to obtain a total funding amount of over $190 million. This funding allowed the service provider to expand overseas after its launch in the UK last spring.
FreedomPop will be launching international plans that come with 200 MB per month of free data in supported countries. The service may be used on any connected device such as smartphones. If additional data is needed, users may simply make a purchase of $10 for every 500 MB. On their website, the company also launched a $10 SIM card and a $50 global hotspot.
FreedomPop offers limited buckets of free voice calls, texts, and data. In the US, it runs on Sprint's network as an MVNO. As a service, it encourages its users to purchase value-added services. But compared to other freemium-based businesses, FreedomPop doesn't shy away from its model. In fact, Constantinopoulos has been very vocal on how the company makes its money.
The CEO shares that the service is "ultimately a platform to sell digital services." And often, this means that it is getting people to pay a small monthly amount for a second phone number using a different area code in a specific region. The CEO shares that "Freemium is just about bringing people on board."
According to the MVNO, there is over 1 million customers using their freemium service. Out of this number, almost half regularly makes a payment for the service they are using. In the US, the company foresees free to paid service conversion rate of 48% and 40% in Europe. Constantinopoulos says that once people convert, "they remain there." This is in reference to the loyalty rate of 80% to 90%.
The CEO believes that apart from its reasonable amount for customer acquisition cost, operators in Europe are welcoming MVNOs since it provides a different approach to an already competitive and saturated market. By engaging in MVNOs, Constantinopoulos believes it is the "only actual way for MNOs (mobile network operators) to achieve growth."
Beyond its European market, FreedomPop has partnered with Malaysia's large Asian telecom group called Axiata; as a way to jointly develop a range of products and services to be released in European, South American, and Asian markets. Constantinopoulos believes that "MVNO is a way to enter new markets."