Freedompop Wireless Launches into The UK

FreedomPop Wireless is a US mobile operator that has made the leap across the Atlantic to offer those on a budget affordable cell phone services. They are rivaling competitors such as Tesco Mobile and the infamous Talk Talk services.

The first phase has been set up in the UK. However, their venture-backed capital plan still is in the early phases. Unlike in the US, in Europe FreedomPop will offer a set-up fee to their customers of seven dollars. Consequently, this is a one-time charge because their basic monthly services will be free. That will give them 200 minutes to call, and text and then 200 MB of data. To make it easy to understand, that will give each client about 100 web pages to surf each month.

Their desire is to sell additional packages to their customers that are ranging from $5 per month to $17. These packages on will be available for purchase after a subscriber has used up their free services. Another benefit to their service will be the ability to earn free minutes. Though this is not available in the US, Europeans will be able to complete marketing surveys to gain additional minutes.

The company, like those of its competitors, will operate off of a MVNO, or Mobile Virtual Network Operator. Because of the fact that they won’t have their own infrastructure, they will be able to offer price-sensitive products. The reduction of overhead is a major advantage for their clientele. In the US FreedomPop uses Sprint’s massive network for their customers. However, in England they will use the Three Network to offer their subscribers services.

Stephen Stokols is the founder and CEO of the company. In the US Market, their customers don’t always buy extra minutes. In fact, only about half of their customer base buys the additional packages. In the UK, they only need about 50,000 subscribers to produce a positive cash flow situation. That’s not a difficult task since so many people are looking into cost-effective cell phone solutions. Though they have some direct competition already established, the new man in town always gets some attention initially.

He tried to start the company in the European market when they first began back in 2011. However, the board rejected any proposals for service in this area due to telecoms giant retail arm. Mr. Patterson has been an adviser for FreedomPop since its inception; however, he stepped down when the plans lead to a launch in the UK. This is due to the fact that company he works for will be in direct competition with his current company.

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