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FreedomPop

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This is an old revision of this page, as edited by Gminton88 (talk | contribs) at 20:45, 11 August 2012 (Added information from recent news stories (Sprint partnership. venture funding, iPod case)). The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.

FreedomPop is a free Internet service provider based in the US. Founded in 2011, it was backed by Skype co-founder Niklas Zennstrom and his venture capital firm Atomico in 2011[1], and received $7.5 million in its first round of funding in 2012.[2] FreedomPop has partnered with Sprint to provide free wireless data to users. [3]

FreedomPop's first product, an iPhone sleeve that provides users with free 4G LTE data, will launch in the summer of 2012.[4]

Overview

In 2012, FreedomPop will begin providing free Internet services in the United States through wholesale Internet carriers. Founded on the premise that the Internet is a "right, not a privilege", FreedomPop aims to offer all Americans free Internet.[5] FreedomPop ended the partnership with LightSquared as a result of FCC regulatory issues, and instead decided to partner with Clearwire.[6] FreedomPop expanded its network partnerships in July by signing Sprint and gaining access to its LTE network.

FreedomPop's business plan is to provide a set amount of data to users for free, sell excess data at the rate of $0.01 per megabyte, and allow users to trade unused data capacities with each other on a social network. FreedomPop will also sell wireless accessories.[7] Tony Miller, FreedomPop's vice president of marketing, believes that 10-15% of users will opt for premium plans.[8] This freemium revenue model is similar to that of Dropbox and Spotify, two companies that also offer free and premium services.

Services

FreedomPop is pursuing a freemium business model, where it will provide a set amount of data to users, for free, sell excess data at a nominal cost, and allow users to trade unused data capacities with each other on a social network. Free Internet is FreedomPop's primary service. After paying an upfront equipment deposit, FreedomPop users will receive 500 MB of data for free each month. Additional data will be available for $10 per gigabyte.[9][10]

Data from Sprint's 4G LTE, WiMax, and 3G networks will be available through portable WiFi hotspots or iPhone cases sold by FreedomPop.[11][12]

Criticism

FreedomPop's initial decision to buy wholesale Internet from LightSquared in early 2012 was met with some controversy.[13] Writers and columnists cited the ongoing FCC investigation as to whether or not LightSquared interferes with GPS frequencies when they admonished FreedomPop to choose another less-controversial wholesale Internet provider. In early 2012, FreedomPop ended their partnership with LightSquared and partnered with Clearwire for wholesale Internet. In July 2012, FreedomPop broadened its list of partnerships to include Sprint[14][15]

FreedomPop's slogan, "The Internet is a right, not a privilege" has also met some controversy.[citation needed] Critics claim that the slogan, taken literally, promotes too loose of a definition of "rights" and that there is no constitutional right to Internet.[citation needed] FreedomPop supporters argue that they are a private company providing free Internet, not a government that uses taxpayer money to provide free Internet.[citation needed]

References

  1. ^ Kharif, Olga (2011-12-16). "Zennstrom Said to Plan Skype-Like Wireless With FreedomPop". Bloomberg Businessweek. Retrieved 2011-12-16.
  2. ^ Hardawar, Devindra (2012-07-10). "FreedomPop raises $7.5M to free you from your carrier shackles (exclusive)". Venture Beat. Retrieved 2012-08-10.
  3. ^ Velazco, Chris (2012-07-10). "FreedomPop Teams With Sprint To Broaden Reach Of Its Freemium Internet Service". TechCrunch. Retrieved 2012-08-10.
  4. ^ Fried, Ina (2012-03-10). "Backed by Skype Co-Founder Zennstrom, FreedomPop Starts Taking Sign-Ups for 4G iPhone Sled". AllThingsD. Retrieved 2012-05-16.
  5. ^ Melanson, Donald (2011-12-10). "Skype co-founder's latest company signs deal with LightSquared, promises free broadband and voice services". Engadget. Retrieved 2011-12-16.
  6. ^ Parkhurst, Emily (2012-03-27). "FreedomPop partners with Clearwire to offer free mobile data access". Forbes. Retrieved 2012-05-16.
  7. ^ Fitchard, Kevin (2012-03-30). "FreedomPop's Plan to Become the Anti-Carrier". Bloomberg Businessweek. Retrieved 2012-05-16.
  8. ^ Woyke, Elizabeth (2012-02-09). "FreedomPop Replacing LightSquared With Other Carrier As 'Free Broadband' Launch Partner". Forbes. Retrieved 2012-05-16.
  9. ^ Fitchard, Kevin (2012-03-30). "FreedomPop's Plan to Become the Anti-Carrier". Bloomberg Businessweek. Retrieved 2012-05-16.
  10. ^ Broida, Rick (2012-07-31). "FreedomPop cradle brings free 4G to iPod Touch". Retrieved 2012-08-10.
  11. ^ Velazco, Chris (2012-03-20). "FreedomPop's New iPhone Case Promises Users Free Wireless Data". TechCrunch. Retrieved 2012-05-16.
  12. ^ Broida, Rick (2012-07-31). "FreedomPop cradle brings free 4G to iPod Touch". Retrieved 2012-08-10.
  13. ^ Segan, Sascha (2011-12-11). "LightSquared's GPS Mess Chains FreedomPOP's Free Broadband". PC Magazine. Retrieved 2011-12-16.
  14. ^ Woyke, Elizabeth (2012-02-09). "FreedomPop Replacing LightSquared With Other Carrier As 'Free Broadband' Launch Partner". Forbes. Retrieved 2012-05-16.
  15. ^ Parkhurst, Emily (2012-03-27). "FreedomPop partners with Clearwire to offer free mobile data access". Forbes. Retrieved 2012-05-16.
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