Nicholas Constantinopoulos is the President of FreedomPop a wireless provider of free mobile services which include data, text, and voice. They have launched not only in the United States but also in England moving into those markets initially using the free services. This is however just an initial move to get their foot in the market, as soon as they are established they begin by identifying market segments that can be better served with additional paid services. As of this interview, their conversion rate from the free services to paid services in the United States have been running at 40% while the conversion to paid subscribers in the United Kingdom has been running at about 50%. Another of their benefits to the marketplace is they can export their expertise to developing markets to help them to accelerate the monetization of their customers their data. Even though with this business model you would think that the mobile network operators could offer the same services that haven’t been the case at all. While FreedomPop has been running an up to 50% paid subscriber conversion rate the MVNOs that have tried offering this have been converting at only around 10%.
In the United States and in the United Kingdom FreedomPop uses the Sprint Network. It has also just launched a global SIM with free mobile data across 25 other countries. They have also partnered with Sprint to provide 3G and 4G service for their customers.
Today FreedomPop has hundreds of thousands of new subscribers and has started the first nationwide unlimited WiFi, voice, and text service for only $5 dollars a month.
Since the initially funding for this new venture posed a problem, that has been addressed by raising 7.5 million dollars in a first round and an additional 4.3 million dollars in a Series A1 financing from Mangrove Capital and Doll Capital Management. In June of last year, they raised an additional $30 million dollars in a series B funding round from Partech Ventures in addition to several more fundraisers to put the company on track to a profitable operation.
Check out this Review of FreedomPop