Light Reading

FreedomPop Sparks Mobile Internet Free-for-All

Sarah Thomas
10/1/2012
50%
50%

Clearwire LLC (Nasdaq: CLWR) wholesale partner FreedomPop opened the doors to its public beta Monday morning, hoping to steal away "tens of thousands of customers" from incumbent U.S. carriers AT&T Inc. (NYSE: T) and Verizon Wireless .

The mobile virtual network operator (MVNO) plans to achieve its lofty goal by making mobile data a commodity, according to COO Steven Sesar. FreedomPop offers consumers a guaranteed minimum of 500 megabytes of free data per month on Clearwire's WiMax network, with the opportunity to earn more through promotions and by recruiting friends to the service.

FreedomPop will cap the number of beta participants, but Sesar tells Light Reading Mobile that he expects more than 100,000 to sign up. The service is initially available on two re-branded Clearwire devices -- a hot spot and data dongle -- that are free with a refundable deposit. The FreedomPop device that's gotten the most attention, a sleeve that turns an iPhone or iPod Touch into a data device, will launch in four to six weeks.

Why this matters
FreedomPop's value proposition is an attractive one, and it comes at a time when mobile service plans have never been more expensive. But, the service isn't without its limitations. With data-only service, consumers will have to rely on voice-over IP and over-the-top apps for voice and messaging. For FreedomPop, making money on the service will be a challenge if it's to rely on a business model that offers free data for everyone.

Right now, its biggest limitation is its network provider, Clearwire. The wholesaler's WiMax network covers only 130 million Americans out of the gate. FreedomPop does, however, have a deal in place with Sprint Corp. (NYSE: S) to use its Long Term Evolution (LTE) network next year, at which time it will reach more than 100 million more Americans.

The MVNO is one of several that Sprint is bringing online as it gets its own service up and running on LTE. Sesar says that the carrier was nimble and accommodating in the launch process, as both companies share a common goal of luring customers away from the big two.

"There's a mutual understanding that we can take market share away from the big incumbent two," Sesar says, adding that Sprint's not worried that FreedomPop's service could cannibalize its own, given its small market share relative to AT&T and Verizon.

For more




— Sarah Reedy, Senior Reporter, Light Reading Mobile

(2)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
joset01
50%
50%
joset01,
User Rank: Light Beer
12/5/2012 | 5:20:08 PM
re: FreedomPop Sparks Mobile Internet Free-for-All


I'm vaguely fascinated by the audience for the service and if in fact they do have a potential customer base or not?

Educational Resources
sponsor supplied content
Educational Resources Archive
Flash Poll
From The Founder
Anshul Sadana answers questions from Steve Saunders, Light Reading's founder and CEO, about Arista's CloudVision, a global cloud network controller for workload orchestration and workflow automation delivering a turnkey solution for cloud networking.
Live Streaming Video
CLOUD / MANAGED SERVICES: Prepping Ethernet for the Cloud
Moderator: Ray LeMaistre Panelists: Jeremy Bye, Leonard Sheahan
LRTV Huawei Video Resource Center
Huawei ONS Product Demo

8|3|15   |   6:01   |   (0) comments


Huawei shows at Open Networking Summit 2015 in Santa Clara how its SDN and NFV solutions embrace openness.
LRTV Custom TV
End-User or Enterprise Benefits to the New IP

7|30|15   |   04:27   |   (1) comment


Andrew Coward discusses what the New IP means to end users or enterprise customers. He explains compelling reasons, including how every customer can get their own network, from the transformation to the New IP.
LRTV Custom TV
Network Visibility & the New IP

7|30|15   |   02:23   |   (0) comments


Mukund Srigopal provides an explanation of what network visibility is and how it is essential as service providers transition to the New IP. In addition, the importance of the network packet broker is discussed.
Between the CEOs
Video Exclusive With Basil Alwan, Alcatel-Lucent

7|24|15   |   26:44   |   (5) comments


Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
LRTV Custom TV
VDF: Enable the Financial With Mobile Money

7|20|15   |   06:53   |   (0) comments


Ian Ravenscroft discusses how operators can expand to occupy the entire digital services value chain through service innovation.
LRTV Custom TV
Telefónica on OSS Transformation

7|20|15   |   06:01   |   (0) comments


Jose Gonzales discusses the details of Telefónica's operation transformation program.
LRTV Custom TV
Judi Achmadi on Huawei's Cloud Storage Solution

7|20|15   |   03:33   |   (0) comments


Judi discusses the key business goals of TelekomSigma's public cloud service and how Huawei's solution helps them address challenges.
LRTV Custom TV
KPN Enlightening Digital Business & IT Transformation

7|20|15   |   06:19   |   (0) comments


Rob de Beer discusses the changes that operators need to make with service innovation now coming from the Internet world.
LRTV Custom TV
Stratus Telco-Grade Cloud Solutions & NFV

7|20|15   |   07:34   |   (0) comments


Ali Kafel from Stratus Technologies addresses high-availability concerns within the telco industry with a solution that enables telcos to provide high-availability and stateful fault-tolerance using a software-based approach.
LRTV Documentaries
The Six Million Dollar Business Man

7|20|15   |   01:52   |   (0) comments


Steve Saunders, publisher. A man barely alive after an acquisition malfunction imploded the company he founded. Gentlemen, we can rebuild Light Reading. Better, faster, stronger.
Between the CEOs
CEO Chat With Anukool Lakhina, Guavus

7|20|15   |   38:51   |   (1) comment


Guavus CEO Anukool Lakhina talks to Light Reading founder and CEO Steve Saunders about the role of operational analytics in the communications services and networking sectors, particularly in relation to IoT.
LRTV Custom TV
IBM's Flash Storage With Intel QuickAssist

7|20|15   |   03:18   |   (0) comments


Intel's Bev Crair and IBM's Eric Herzog discuss how IBM's V9000 Flash Storage System has helped customers around the world. Featuring real-time compression powered by Intel QuickAssist Technology, the V9000 is a next-gen flash storage solution.
Upcoming Live Events
September 16-17, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 16, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
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
All Upcoming Live Events
Infographics
To keep up with consumers' increasing digital lifestyles, an IT system and operating model overhaul is required using a modern BSS, IES and analytics.
Hot Topics
FCC Plan Could Stymie Rural Broadband
Carol Wilson, Editor-at-large, 8/3/2015
Eurobites: Nokia Seals HERE Sale
Paul Rainford, Assistant Editor, Europe, 8/3/2015
Verizon Small Cells Ready to Rock in Chicago
Sarah Thomas, Editorial Operations Director, 7/31/2015
Like Us on Facebook
Twitter Feed
September 22, 2015
Media Begins With “Me”
Webinar Archive
BETWEEN THE CEOs - Executive Interviews
I was pleasantly surprised when Ericsson recently agreed to let me interview its CEO, Hans Vestberg. Traditionally, mega-companies like Ericsson (or Cisco) have kept ...
Basil Alwan, President of IP Routing & Transport at Alcatel-Lucent, discusses virtualization, cultural challenges, the capex crunch and more with Light Reading founder and CEO Steve Saunders.
Cats with Phones