FreedomPop, a data-only carrier attempting to make the freemium model work for mobile service, plans to add voice calls and texts to its free 4G data plan. The service will arrive first on select Android devices this summer:
FreedomPop, today announced the first-ever completely free mobile service with free voice, free text and free data. FreedomPop’s ground breaking service will give users a guaranteed 500 MBs of 4G data for free, unlimited texting, and 200 free anytime voice minutes each month. In addition, FreedomPop users will enjoy free unlimited calls to each other. The FreedomPop service will be available on several popular Android phones later this summer and will be the first-ever all-data devices running 100 percent VoIP over cellular networks.
The carrier currently offers 500Mb of free data, but only on 4G and only on the Sprint network. The company aims to make its money from excess data charges, add-ons (like $4/month for 3G data) and upselling customers to a $10/month plan for unlimited voice calling.
FreedomPop also plans to offer customers a range of discounted refurbished Android devices as an alternative to either subsidised pricing on a conventional paid contract or high prices for non-subsidised devices.
The company has been criticised for deceptive practices, such as not making clear that 3G data is chargeable, and that deposits on ‘free’ hotspot devices were lost if the customer kept the equipment for 12 months. As always when shopping around for plans, we recommend careful comparison and reading the small-print.
LOS ANGELES, CA, JUNE 5, 2013 – FreedomPop, today announced the first-ever completely free mobile service with free voice, free text and free data. FreedomPop’s ground breaking service will give users a guaranteed 500 MBs of 4G data for free, unlimited texting, and 200 free anytime voice minutes each month. In addition, FreedomPop users will enjoy free unlimited calls to each other.
“This is not only disruptive, but game-changing,” said Jonathan Chaplin from Newstreet, an investment firm focused on the telecom industry. “This move completely marginalizes the voice network by leveraging VoIP over cellular and is extremely threatening to already declining voice margins.”
The FreedomPop service will be available on several popular Android phones later this summer and will be the first-ever all-data devices running 100 percent VoIP over cellular networks.
“The quality of over-the-top VoIP services is now at a stage where we can deliver the major mobile services completely free to consumers. FreedomPop is changing the mobile market for good with the sole intent of bringing better value to the consumer,” said Stephen Stokols, FreedomPop’s CEO and cofounder. “FreedomPop’s mission is to ensure that everyone has access to affordable, convenient and essential communication services. With this launch, we’ve just taken a very big step towards delivering on this promise.”
With gross margins of over 50 percent on its ‘freemium’ products and services, led by outstanding consumer demand and high growth rates, FreedomPop has demonstrated the commercial viability of its model of delivering 4G wireless to the mass market.
FreedomPop is looking to officially launch the service and phones later this summer, but interested users can sign up for early access now at FreedomPop.com/phone.
To learn more about the FreedomPop Phone service, go to http://www.FreedomPop.com/phone
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