FreedomPop expects half its customers ‘won’t pay a penny’

FreedomPop expects half its customers ‘won’t pay a penny’

Disruptive MVNO FreedomPop’s CEO is prepared to lose money as it’s free mobile service offering launches in the UK.

Speaking to Mobile, Stephen Stokols explained that FreedomPop’s new business model will rely on making money through value added services, rather than through voice and data. He explained that there is a huge demand for free services in the UK, after the MVNO signed up 250,000 beta users prior to launch.

Stokols said: ‘We’re expecting 50% of our users to never pay us a penny. There’s a huge demand in the UK for this type of value proposition. We’re not going to make money by offering free services. What we’re offering is value added services – these enable our business model and that’s where we’ll make money. Other operators are trying to make money from voice, texts and data and we’re not, we’re trying to commoditise this market. We’re offering free services despite the fact we know we’ll lose money and it will be difficult for carriers to match that.

‘Our end game is to see an acceleration towards selling digital services. Ultimately you’ve got a competitive market in the UK and we’ll come in and offer the floor, you can’t go below free. The beauty of what we’re doing is it takes the competitive UK market and throws gasoline on it.’

The CEO has previously revealed ambitions to wipe out £5 and £10 mobile tariff plans. The MVNO is hoping to gain 100,000 subscribers within the first month in the UK and looks to grow its customer base to one million within the first year.




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