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FreedomPop

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FreedomPop is a freemium Internet service provider based in the US. Founded in 2011, FreedomPop was backed by Skype co-founder Niklas Zennstrom and his venture capital firm Atomico in 2011,[1] and FreedomPop received $7.5 million in its first round of funding in 2012 from Mangrove Capital and DCM. f2] FreedomPop.[2] FreedomPop has partnered with Clearwire and Sprint to provide free wireless data to users.[3]

Additionally, in the early part of 2013, the Los Angeles company also has raised $4.3 million in new Series A1 financing from existing investors DCM and Mangrove Capital, which brings its total funding to $11.2 million.[4]

FreedomPop has several mobile broadband devices including a Hot Spot Photon, USB dongle Bolt, a 4G iPod sleeve Rocket, and a home broadband router and modem.[5] In June 2013, FreedomPop announced that on strong margins in the data only business, it would start offering full service mobile phone with free voice, data and text sometime later in the year. [6]

Overview

In November 2012, FreedomPop began providing free and paid wireless Internet services in the United States through wholesale Internet carrier Clearwire. The service is in beta.[7] FreedomPop expanded its service portfolio, launching a free and paid home broadband service, significantly cheaper then home dsl or broadband. FreedomPop also extended its free wireless internet service nationwide to all Americans in April 2013 with its first 3G/4G hotspot, the Overdrive Pro. FreedomPop ended the partnership with LightSquared as a result of Federal Communications Commission (FCC) regulatory issues, and instead decided to partner with Clearwire.[8] FreedomPop expects to continue to offer Clearwire's network to existing, as well as new users even after the planned partnership with Sprint in March 2013. The added Sprint coverage will include 3G and 4G networks with the added LTE sometime later in the year.[9]

FreedomPop's business plan is to provide a base amount of data (500MB) to user for free, sell excess data at the rate of $0.01-$0.02 per megabyte, and allow users to trade unused data capacities with each other on a social network. FreedomPop will also sell wireless accessories.[10] Tony Miller, FreedomPop's vice president of marketing, believed that 10-15% of users would opt for premium plans, but actual data released by the company has put that number closer to 40% with gross margins over 50%.[11] This freemium revenue model is similar to that of Dropbox and Spotify, two companies that also offer free and premium services. Some FreedomPop customers have complained that the company charges for data usage even though the customer has turned off the "auto top-up" feature which is supposed to prevent charges for excess data usage.

Services

FreedomPop is pursuing a freemium business model, where it provides 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 though it has announced plans to offer a free mobile phone service later in 2013. After purchasing a FreedomPop device, FreedomPop users will receive 500 MB of data for free each month. Additional data will be available for $10-$20 per gigabyte.[10][12] On top of the 500MBs of free data that renews with each month, FreedomPop offers additional ways to earn free data through partner promotions like signing up for trials of Netflix or registering a domain at GoDaddy. Referrals to new users will also, earn you up to 500MBS each month. Each referral will earn you 50MB of data, up from the previous 10MB.[13]

FreedomPop also, recently announced new Social Sharing features. On FreedomPop’s dashboard people can see a list of their friends with a graphic that shows how much free data each friend has left that month. There’s also a “Give” or “Get” button next to each name. So people can help those who are running out, or request data from those who haven’t used much. Or if someone is traveling, for example, they can ask friends to give them some of their data.[14] In April 2013 FreedomPop announced its first 3G and 4G nationwide hotspots on Sprints nationwide network with a $40 hotspot.

Hardware

The list of FreedomPop branded devices includes the Freedom Stick Bolt (a USB stick), the Freedom Spot Photon (a hockey puck shaped hotspot), the Freedom Sleeve Rocket (a sleeve for the Ipod Touch 4), and the Freedom Hub Burst (a home Internet hub)[15].

textPlus

FreedomPop announced another partnership with textPlus to expand service beyond simply being an internet service provider. With this, FreedomPop will be able to provide voice and SMS text services.[16]

LightSquared

FreedomPop partnered with LightSquared, buying wholesale Internet services from them.[17] This decision was met with some controversy.[18] Commentators cited the ongoing FCC investigation as to whether or not LightSquared interferes with GPS frequencies. 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.[11][8]

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. ^ Geron, Tomio (2013-02-07). "FreedomPop Adds Social Sharing, And $4.3 Million". FOrbes. Retrieved 2013-02-26.
  5. ^ 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.
  6. ^ Kersey, Ben (2013-06-05). calls-for-free-how-freedompop-will-offer-free-phone-service "How FreedomPop Will Offer Free Phone Service". Forbes. Retrieved 2013-06-26. {{cite news}}: Check |url= value (help)
  7. ^ 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.
  8. ^ a b Parkhurst, Emily (2012-03-27). "FreedomPop partners with Clearwire to offer free mobile data access". Forbes. Retrieved 2012-05-16.
  9. ^ Geron, Tomio (2013-02-13). "FreedomPop Plans 'LTE Clip' To Give Free LTE To iPad, Android Tablets". Forbes. Retrieved 2013-02-26.
  10. ^ a b Fitchard, Kevin (2012-03-30). "FreedomPop's Plan to Become the Anti-Carrier". Bloomberg Businessweek. Retrieved 2012-05-16.
  11. ^ a b Woyke, Elizabeth (2012-02-09). "FreedomPop Replacing LightSquared With Other Carrier As 'Free Broadband' Launch Partner". Forbes. Retrieved 2012-05-16.
  12. ^ Broida, Rick (2012-07-31). "FreedomPop cradle brings free 4G to iPod Touch". Retrieved 2012-08-10.
  13. ^ Geron, Tomio (2013-02-07). "FreedomPop Adds Social Sharing, And $4.3 Million". Forbes. Retrieved 2013-02-26.
  14. ^ Geron, Tomio (2013-02-07). "FreedomPop Adds Social Sharing, And $4.3 Million". Forbes. Retrieved 2013-02-26.
  15. ^ http://www.biblemoneymatters.com/freedompop-review-free-4g-wireless-internet-access-can-help-you-save-on-your-cell-phone-bill/
  16. ^ Velazco, Chris (2013-01-08). "FreedomPop, textPlus team up to offer freemium voice, SMS service". Gigaom. Retrieved 2013-02-26.
  17. ^ http://www.engadget.com/2011/12/10/skype-co-founders-latest-company-signs-deal-with-lightsquared/ Skype co-founder's latest company signs deal with LightSquared, promises free broadband and voice services
  18. ^ Segan, Sascha (2011-12-11). "LightSquared's GPS Mess Chains FreedomPOP's Free Broadband". PC Magazine. Retrieved 2011-12-16.
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