Communications is one area of the technology industry that has exploded onto the scene. Mobile Internet connected devices are fueling a strong demand for users seeking an alternative data plan to the traditional major carriers. A recent report from RCRwireless mentions that upstart company FreedomPop has secured millions of dollars in funding from venture capitalist in order to boost expansion plans. FreedomPop is a mobile virtual network operator, or MVNO, that offers free connectivity and voice service for users across the globe.
The company has been so successful that rumors were flying about one of the major carriers, like Verizon or AT&T, offering to acquire it; however, FreedomPop went an entirely different direction by securing funding to drive growth plans and remain an independent MVNO operator. By offering a set amount of data and minutes to every user for free, FreedomPop is able to generate revenue by charging users low monthly fees for services they demand. In short, smartphone users are able to select which products they want or need and avoid purchasing services they do not.
The business model of FreedomPop is attracting customers. The free service and low monthly costs are driving growth across the entire company. By opting to remain an independent entity, FreedomPop is building customer awareness and strengthening the brand. While being acquired by a larger company is something that the firm might explore someday, for now FreedomPop is focused on building bigger and faster networks and increasing it user base. The expansion driven model allows which allows the MVNO to run off of Sprint service has proven to be extremely lucrative. For more information the entire press release appears on RCRwireless.