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.