A mobile operator, FreedomPop, from the US that offers a 4G service has now travelled across the Atlantic, and will now challenge other providers such as Talk Talk and Tesco Mobile. In an expansion plan, FreedomPop has started the first phase in the UK. Having paid a start-up fee of seven pounds, they provide for free, monthly service that includes 200 minutes, 200 texts and 200 MB, which is equivalent to a 100 web pages.
FreedomPop looks forward to generating some money through the sale of packages on twitter.com that will cost between 4.99 and 16.99 pounds every month after the subscribers have utilized their free allowance. Also, by completing marketing surveys, subscribers could earn more allowances. FreedomPop will be a virtual mobile operator network.
Stephen Stokols is the chief executive who engineered the idea for FreedomPop when he was working at BT. According to him, in the US only half of customers purchase extra capacity from the market. Regardless of that, Stephen claims that FreedomPop requires attracting 50,000 customers only, to be positive on their cash flow in the UK. Stokols established FreedomPop in 2011 in the US following a rejection by BT board on his suggestion to begin a set up in the UK. By then, BT was led by Patterson who is the present chief executive.
Patterson was the FreedomPop advisor. He then resigned when FreedomPop embarked on the UK project since it would bring competition to BT’s mobile business that is established on MVNO basis with EE. BT ventured into the mobile business in March making extreme pricing than expected, before they agreed to give 12.5 billion pounds to adopt EE.
FreedomPop looks forward to lowering its costs through use of Wifi to send as much traffic as possible, rather than the use of mobile networks. Stephen Stokols have planned to go to the UK to try if he could make an agreement with BT, so that they can use their Wifi network. FreedomPop will initially use online means to sign up its customers.