Light Reading

'Pop Goes the iPod

Dan Jones
LR Mobile News Analysis
Dan Jones, Mobile Editor

Could FreedomPop allow users to "cut the carrier 100 percent" with its upcoming close-to-free wireless data service?

As Light Reading Mobile reported it would in June, FreedomPop has developed a $99 "wireless sleeve" for the iPod Touch that allows users to access its service.

Here's how it works: the radio sleeve slips over a user's iPod Touch or iPhone 4, links to the phone via Wi-Fi and connects to Clearwire LLC (Nasdaq: CLWR)'s network via a WiMax radio in the casing. The sleeve will allow the video-capable MP3 player to surf the Web, video chat and more, for free -- or close to it -- on an unsubsidized data device that isn't linked to any carriers.

The startup will give at least 500MB of free data to each user monthly, then charge $10 per gigabyte once a subscriber hits the cap.

Users will be able add 10MB to their data bucket with each friend they get to join the FreedomPop network with a limit of up to 1GB. In addition, FreedomPop will allow heavier data users to earn up to 5GB free by engaging in partner offers and promotions, but the startup hasn't yet revealed details about those deals.

"You'll also be able to share unused capacity with your [FreedomPop] friend network," FreedomPop COO Steven Sesar reveals.

"We're literally cutting the carrier 100 percent," claims Sesar. "This is a Web company disrupting the telco space."

In Sesar's take, cutting the carrier means reducing the cost of acquiring the wireless data device to as low as possible, offering an initially free service and not locking the user into any kind of contract. One of most comparable currently available offerings is the Virgin Mobile USA Inc. (NYSE: VM) $65 personal Wi-Fi hot spot, which runs on the Sprint Corp. (NYSE: S) 3G network.

FreedomPop paid attention to "thousands of emails" requesting that the company make a sleeve for the iPod as well an iPhone. As Sesar points out, plenty of people already have an iPod Touch or can pick one up off eBay for a relatively small outlay.

"Obviously we're not going after the professional market," Sesar states. Instead he sees the target demographic as social networking-savvy 13- to 21-year-olds who want to get online for a low initial outlay.

The company will be building in social networking tools like chat and -- like Zynga Inc. and others -- will allow users to buy into offer ads that will give them more capacity on the network.

Sesar says that the company is eventually shooting to become a "free social wireless broadband" service. He says that it is also possible that the firm will add premium applications like VoIP, although Sesar says that his firm supports Google Chat and Skype already.

Of course, cutting out the carrier is unlikely to appeal to all wireless providers. But FreedomPop will start to offer service in 71 cities in the U.S. on Clearwire LLC (Nasdaq: CLWR)'s WiMax network and then move toward deploying on Sprint Corp. (NYSE: S)'s LTE network.

So what's in it for Clearwire and Sprint? Expanding market share and possibly lowering wholesale customer acquisition costs, Sesar says.

"The only way they’re going to take market share [from AT&T and Verizon, that is] is by allowing innovative companies like FreedomPop to innovate on their network," Sesar claims.

Sesar says that the friends-recommending-friends, social networking approach of adding customers to its network, could help FreedomPop lower customer acquisition costs. He says that it can cost a carrier hundreds even to get a a personal Wi-Fi hot spot user on the network. The eventual goal for FreedomPop is to take customer acquisition costs lower than $5.

Now, the company is actually getting ready to launch the service this year. "We're about two months away from launching," Sesar says.

FreedomPop is a startup created by Skype Ltd. co-founder Niklas Zennstrom and is backed by his Atomico Ventures VC company. Xconomy says that FreedomPop raised a $7.5 million Series A round in July from Mangrove Capital Partners and DCM - Doll Capital Management .

"We're well capitalized," notes Sesar, adding that what has been made public is not the full amount yet.

For more

— Dan Jones, Site Editor, Light Reading Mobile

(5)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
User Rank: Light Sabre
12/5/2012 | 5:25:22 PM
re: 'Pop Goes the iPod

I don't get the comment "cutting the carrier 100%". You still have a wireless carrier in the middle.. It's just a different type of plan that any mobile carrier could offer if they wanted. You trust that 911 will work when you need it over this third party VOIP network?  It's Magic Jack for an iPOD, and another device to charge and bulk up your device.

User Rank: Light Beer
12/5/2012 | 5:25:21 PM
re: 'Pop Goes the iPod

Re: Quality


Well it's a best effort thing like Skype or Google Chat. As he made clear its not aimed at people that want pristine wireless quality on a network (as if that ever happens), the service is aimed at young people that want a cheap way to get online.


Re: Cutting carrier out

Yeah, its their tagline clearly, but they still need some kind of carrier, seems like its more aimed at cutting out the big boys (as if they care).

User Rank: Light Beer
12/5/2012 | 5:25:18 PM
re: 'Pop Goes the iPod

Wait, this is still all on the Clearwire network, so they have location, e911 etc on that. I'm just making the point that its clearly not for the five 9s biz traveller type.

User Rank: Light Beer
12/5/2012 | 5:25:18 PM
re: 'Pop Goes the iPod

yeah, the 911 thing would be tough to ignore if you're a parent. not sure i'd want to leave my kid without a foolproof way to contact emergency services.

well, i say that, and i've also tried to use AT&T's network in downtown Austin and LA, so I'll just keep the kid current with his tae kwon do lessons and teach him CPR.

From The Founder
The comms industry is rallying to the cause of open, independent interoperability testing.
Flash Poll
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
LRTV Documentaries
The Business Case Challenge for NFV

10|7|15   |   03:47   |   (0) comments

Virtual CPE is one of the early success stories for network functions virtualization, as service providers are finding flexible, programmable CPE solves a lot of logistics problems and reduces their cost. But even here, Masergy Communications faced a business case challenge, says CTO Tim Naramore.
LRTV Interviews
JT Offers Some Gigabit Lessons

10|7|15   |   4:08   |   (0) comments

Barna Kutvolgyi, managing director, Global Consumer, at JT, the incumbent operator on the island of Jersey, talks about how other service providers can learn from his company's gigabit broadband rollout experiences.
LRTV Interviews
AT&T's Chiosi on the Potential of Open Source

10|6|15   |   06:27   |   (0) comments

AT&T Distinguished Network Architect Margaret T. Chiosi talks to Light Reading's Carol Wilson about the potential for open source technology to liberate communications service providers.
LRTV Interviews
Network Security in a Gigabit World

10|6|15   |   05:52   |   (0) comments

Masergy's James Harrison talks about some of the network security and data center issues network operators need to consider as they expand their broadband services portfolios.
LRTV Documentaries
Telefónica: In Search of Virtual Simplicity

10|5|15   |   07:30   |   (0) comments

Francisco-Javier Ramon Salguero, head of Telefónica's NFV initiative, admits virtualization initially means greater complexity, but with the right abstraction layer, it is possible to create a services-driven network architecture. He explains how Telefónica's current trials and initiatives are aimed at doing that, and what his company and other carriers need to ...
LRTV Interviews
Gigabit Europe Takeaways

10|5|15   |   03:47   |   (0) comments

Participants from the inaugural Gigabit Europe event in Munich share their key takeaways from the conference.
Women in Comms Introduction Videos
Intel Urges Women to Take Advantage of Their Seat at the Table

10|5|15   |   4:27   |   (1) comment

Have inclusive and constructive conversations, attach a bigger meaning to your work and get involved in the cause, Intel's Monique Hayward advises women in comms.
LRTV Interviews
BT Updates on Plans

10|2|15   |   03:16   |   (2) comments

Peter Bell, CIO at Openreach, the access network division at UK incumbent BT, provides an update on the operator's trials and how Openreach is planning to deploy the broadband technology in its street cabinets.
Telecom Innovators Video Showcase
Sonus Shakes Up SD-WAN

10|2|15   |   7:22   |   (0) comments

Sonus CTO Kevin Riley sat down with Light Reading to discuss the trajectory of the company, its SDN ambitions and why Sonus is taking a market-disruptive approve to SD-WAN.
LRTV Interviews
CityFibre's Gigabit Vision

10|1|15   |   03:18   |   (1) comment

Mark Collins, director of Strategy & Public Affairs at competitive UK city network operator CityFibre, talks about his company's plans to help build Gigabit Cities.
Telecom Innovators Video Showcase
Automate, Scale & Create With Juniper's vCPE Solution

10|1|15   |   6:34   |   (0) comments

Join Kireeti Kompella, Juniper Networks CTO, and Steve Saunders, Light Reading Founder and CEO, as they discuss Juniper Networks' approach to NFV showcased with a turnkey vCPE solution, which demonstrates how service providers can use automation to rapidly deploy services.
LRTV Interviews
Gigabit Europe: Day 1 Takeaways

9|29|15   |   05:47   |   (5) comments

Light Reading's Ray Le Maistre and Iain Morris sup a beer and discuss some of the key takeaways from the first day of Gigabit Europe 2015.
Upcoming Live Events
October 14-15, 2015, New Orleans Ernest N. Morial Convention Center, New Orleans, LA
November 5, 2015, Hilton Santa Clara, Santa Clara, CA
November 17, 2015, Santa Clara, California
December 1, 2015, The Westin Times Square, New York City
December 2, 2015, The Westin Times Square, New York City
All Upcoming Live Events
Communication service providers realize that an ICT transformation is critical to their long-term survival, but most haven't yet committed to making it happen.
Hot Topics
Verizon's Go90 Is Live – Will Anyone Watch?
Mari Silbey, Senior Editor, Cable/Video, 10/1/2015
Eurobites: Dunroamin'
Paul Rainford, Assistant Editor, Europe, 10/2/2015
M&A Speculation Swirls Around Juniper
Ray Le Maistre, Editor-in-chief, 10/6/2015
Cisco's Chambers Rules Out Political Bid
Mitch Wagner, West Coast Bureau Chief, Light Reading, 10/6/2015
AlcaLu Execs Lose Out as Nokia Unveils New Top Team
Iain Morris, News Editor, 10/7/2015
Like Us on Facebook
Twitter Feed
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
With so many new and exciting communications technologies now under development, it's easy to get caught up in the industry's escalating hype cycle. That's why the ...
Last week saw a big day in the 15-year history of Light Reading when Editor-in-Chief Ray Le Maistre and I were invited to interview the Deputy Chairman and Rotating ...
Cats with Phones
Hold My Calls, Indefinitely Click Here