FreedomPop announced in an article on Mobile Today that it was set to shake up the mobile service industry in place in the United Kingdom by offering free service. Stephen Stokols, the CEO of FreedomPop stated that the tech-heavy company is expected to receive around 100,000 subscribers within its first month of operation. The idea behind the business model is that most mobile services in the UK won’t be able to compete with the technology and digital services that FreedomPop plans to offer.
FreedomPop intends to make money by having and offering valuable technology through digital services that other companies can’t compete with. FreedomPop is essentially a tech company unlike other mobile providers that are more marketing companies, according to Stephen Stokols. It plans to make its money by getting rid of of small tariffs for voice and text charges, and it will use its superior technology to attract purchases of add-ons for services.
According to Stephen Stokols, the company is going to be selling value-based packages to clients. The company expects roughly half the customers will never have to pay them anything because they are replacing the low end of the mobile market. Still, making money on paid service plans with better digital services and not having any charges for voice and data will eliminate a lot of competition because other mobile companies won’t be able to compete with FreedomPop.
As of right now, distribution is not a concern for the company despite having built up several distribution channels. Offering the free voice and data service will keep FreedomPop very busy from the start. Current distribution and advertising channels include bargain sites such as Groupon and many other media channels. FreedomPop has stated that it has about 2800 partners online, but there is no need to bring them in just yet. If they are expecting 100,000 new subscribers the first month they turn on in the UK, then bringing in online partners now would simply overwhelm the company and its staff. FreedomPop estimates that it will be up to eight weeks before distribution channels are turned on.