Free Wireless Offered at FreedomPop

Free wireless service? My first thought was that this is simply not possible. The costs of a basic plan with most wireless carriers is far too high to allow for “free.” There must be a catch, right? Free wireless service is just too good to be true.

As wireless companies fight for customers and recognition as the best in coverage and pricing, Freedom Pop (based in Los Angeles and founded in July 2011 by Stephen Stokols and Steven Sesar) is growing in popularity as a discount wireless company that offers their basic mobile phone and 4G data plan FREE.

According to Fortune the basic plan FreedomPop offers to its customers is 500 MB of data, 200 voice minutes and 500 text messages each month. And the company hopes to raise the data limit to 1 GB per month as they grow.

How can they offer a free plan and still make money, mainly because they have no overhead. But also because they operate as a mobile virtual network and buy bulk data from a large national company who owns and maintains a wireless infrastructure. Even more impressive is the fact that FreedomPop is absorbing the cost of purchasing bulk data in order to offer their customers a totally free service. This fact has significantly increased their popularity and revenue.

In researching this company for more details and information on how they make their money, Fortune notes that FreedomPop offers their customers extra services and larger data, voice and text plans for additional fees. They expect that a majority of customers will pay for extra services, and since about half of their customer base does indeed purchase these extra services, this is where FreedonPop makes their money.

FreedomPop can be found in a large and growing area in the United States and has branched out into the UK. Plans include both domestic and international calling options, an unlimited voice, text, and access plan that covers over 10 million nation-wide WiFi hot spots for $5 per month (as advertised on their website), a data rollover plan, phone insurance, and the option for their customers to use their own phone or purchase a FredomPop phone (refurbished).

Is this the direction that wireless service is heading? If so FreedomPop is the company to watch!

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