FreedomPop is known as the only mobile operator that offers its customers access to free data, text, and call minutes, and now according to an article published in The Telegraph it is expanding its operations beginning with the UK. The company has decided to offer its trademark service in the UK as the first phase of its expansion plan overseas.
The service offering will mirror what is available in the US with customers receiving free 200 minutes of calls, 200MB of data, and 200 texts every month after they pay a onetime set up of just £7. Customers that find they need more than that have the option to purchase add on packages to extend their calling time, data, and texts. The packages will be available in £4.99 and £16.99 levels to accommodate different usage levels. In addition, customers can add onto their free monthly allowance by taking third party surveys available through the FreedomPop platform.
Similar to their operations in the US, FreedomPop will not actually own any mobile infrastructure or mobile masts in the UK. They will instead purchase capacity from the Three network and then attempt to cut into the budget mobile market that is currently dominated by major UK competitors Tesco and TalkTalk.
The freedom of free mobile was conceptualized by Stephen Stokols who used to work for BT in the UK. BT did not approve the launch of his idea so he brought it to the US and launched his own product. In the US market about half of the customers that use FreedomPop actually buy extra packages every month which is where the company makes its profit. However, he stated that in order to get positive cash flow in the UK they only need to get 50,000 subscribers.
FreedomPop further aims to streamline their costs by utilizing Wi-Fi networks instead of mobile networks which would keep their overhead cost lower. In an effort to do so Stokols is headed to the UK towards the end of the month to meet with BT and attempt to get access to the company’s Wi-Fi network.
When FreedomPop launches in the UK consumers will have to sign up online, but Stokols is working with high street retailers to allow consumers to eventually sign up in-store as well.