According to Fortune, FreedomPop is gaining much attention and backing. To those that are not familiar with the company, FreedomPop is a cellular service company that offers 500MB of data, 200 voice minutes, and 500 text messages to subscribers at no cost each month.
With the help of these free plans, FreedomPop hopes to reach 1 million subscribers by the end of their third quarter. The rapid growth to almost 1 million subscribed has caused much attention to be gained by supporters as well as other cellular services. FreedomPop has been able to raise $30 million which can help the company to continue to grow.
FreedomPop has much room for growth and a lot of potential. In addition to raising $30, FreedomPop has been presented with many acquisition offers in which they turned down. Though FreedomPop turned down several acquisition offers, it may be interested in such offers in the future. According to the co-founder and CEO, Stephen Stokols, he is waiting for FreedomPop to expand before any offers are really considered.
If you are asking what’s the catch, there is not catch. This company is able to offer free services because it is a mobile virtual network operator (MVNO). This simply means that FreedomPop is able to piggy back off of other cellular carrier’s services. By not owning their own infrastructure FreedomPop is able to save a lot of money but in order to attract new customers they have to spend money. The cost to piggyback off of other cellular carriers services is not fee. FreedomPop has to come out of pocket for all of the free services that they offer.
Even though the company may seem to be losing money because of the free services it offers, FreedomPop is able to recuperate some of those monies with the help of add on features. Customers are able to increase their monthly data allotment, sign up for a data rollover plan, or even sign up for an international number that will allow the individual to make and receive international calls without having to pay expensive international rates for a small fee.