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FreedomPop Gains Profit from Paid Additional Services Among UK Users

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FreedomPop, a California-based MVNO running on Sprint's network has gained the attention of its users by offering plans like a free basic plan with 500MB of data and limited minutes and texts. Other than this, they have offered a 4GB data plan for only $34.99 per month. Undoubtedly, it is their free plan that has put the wireless service provider on the map.

But if there's something that drives income to the company, it would be from the optional paid services they offer. The MVNO has attributed nearly half of its British users to opting for paid services such as Spotify and WhatsApp. According to FreedomPop CEO Stephen Stokols, it comes to no surprise as to why their users would spend for these services; especially since their plans come with decent prices and are of great value. Even though the company just launched in the UK last September, the British users were quick to welcome FreedomPop in the country compared to the other new arrivals.

Because of the numbers FreedomPop is seeing, the CEO believes they will get to see their first net profit in just a few month's time, which Stokols estimates to be "at six figures". And for an MVNO offering a free basic plan and dealing with operational costs, this can be considered as a huge accomplishment. To date, the wireless provider has a favorable 48% conversion rate; that being, the number of free users who switched to a paid service. This gives FreedomPop confidence that it is able to compete with other MVNO brands and even be at par with the prepaid options offered by major local carriers.

So what's next for the MVNO? For sure, the positive turnout of their expansion won't just stop in the UK. While it was once considered as an underdog MVNO, they now have the capital and flexibility to expand their free basic service to anywhere they believe a potential market would be profitable. As of this writing, the wireless service provider has already expanded into Spain. With the way the public is embracing the changes brought about by MVNOs like FreedomPop, it's about time big carriers are finally taking notice of their success. The next step would be to identify how FreedomPop could work together with the big telecommunications companies.

Source: Reuters



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9 comments:

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  1. Too bad they're still VoIP. RingPlus is free and offers much more data. I do suspect both FP and RP are fronts for Sprint to gain more positive reviews about network quality.

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  2. What network do they use in the UK?

    How will the Brexit vote affect their expansion plans?

    ReplyDelete
    Replies
    1. FreedomPop uses Three UK in the UK.
      I have no idea what impact Brexit might have on FreedomPop's global expansion plans, if it passes.

      Delete
  3. in usa, model after ringplus. in uk & world, model after truphone?

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    1. FreedomPop launched before RingPlus.
      Truphone is not freemium.

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    2. Freepop is only similar to truphone because it roams in several countries. Truphone works in about 230 countries, far more than Freepop with about 31. Truphone sim has monthly business plans but they do not use voip like Freepop.

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    3. "The Truphone Network 24-Feb-2016•FAQ

      Where Do We Operate?
      The Truphone network covers over 200 countries.

      How To Check Network Coverage?
      Our coverage checkers can be used to check for outages in any country in the Truphone Zone.

      What is The Truphone Zone?
      The Truphone zone in made up of 8 countries where we offer a uniquely local service.More information on the Truphone Zone

      What Is The Truphone World?
      The Truphone world consists of 66 countries where all calls, texts and data usage are considered in bundle (business plans). More information on Truphone world"

      Delete
  4. This has literally no relevance to the US prepaid market.

    Lyca's troubles may trickle down, but FP's overseas success probably won't affect their US operations in any way.

    On a related note, I'm still not sold on VOIP-only carriers.

    After some truble with Hangouts on a solid Wifi connection, I've come to appreciate real voice service now more than ever before.

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  5. To be clear, FP in the USA is not only selling Sprint service. Their SIM runs on GSM networks such as ATT, albeit limited to HSPA rather than LTE.

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