FreedomPop Now Allows Bring Your Own Phones

FreedomPop, a mobile cellular service initially backed by Skype founder Niklas Zennström, has been trying to make good on its slogan: “The Internet is a right, not a privilege” through a freemium business model. 

FreedomPop offers three tiers of phone plans.  The base level gives a customer 200 voice minutes 500 texts and 500 MB of data for $0.  FreedomPop’s e middle tier offers 500 voice minutes, unlimited texts and the 500 MB of data for $7.99.  If a FreedomPop consumer “splurged” to get unlimited voice, unlimited texts and 500 MB of data, it would only cost $10.99.  If a customer needs more, voice minutes are a penny a piece and 1 MB of data for 2.5 cents (or penny per MB for Premium Data subscribers)   FreedomPop does not officially support Hotspot for their handsets. FreedomPop customers are eligible more free services through social networking or participating in surveys et cetera. 

As a  a Mobile Virtual Network Operator (MVNO), FreedomPop does not have to maintain a network and does not entice customers with subsidized brand new handsets in exchange for an expensive iron-clad contract.   FreedomPop utilizes an Voice Over Internet (VOIP) voice and IP.  FreedomPop finds that around 45% of their customers purchase upgraded service. 

During the first ten weeks of FreedomPop Phones, it was offering refurbished HTC Evo 4G Design phones  for $99.  This was a decent price for a free phone service, but the price was not right for a cellular consumer who has a stack of superceded smart phones at his fingertips   But after network partner Sprint finally gave its blessing, FreedomPop can now accept Bring Your Own Devices (BYOD) for unlocked Sprint CDMA cell phones.  This allowed me to repurpose a legacy HTC Evo for a low cost (to no cost) second cell phone line.



Following their Freemium model, FreedomPop phones look to various approaches to monetize.  Much to FreedomPop’s credit, the company moved away from the $0.99 minimum usage charge which they initially attached to their Hotspots.  And data usage is frozen when there is less than 100 MB unless FreedomPop has permission to automatically top it off with a revolving charge.   FreedomPop does assess a $2.74 per month charge for voicemail, which can manually be excluded.  At sign up, customers are offered a complimentary 1 GB bonus, which later converts to a $9.99 a month charge. 

 If a customer took the premium 1 GB of data, the voice mail and unlimited talk and texting, the total bill would be $23.72.   On the one hand, FreedomPop’s $23.73 pricing is slightly more than the PayLo unlimited talk and text for feature phones but includes much more data.  On the other hand, Virgin Mobile offers unlimited texting, 300 voice minutes and unlimited data for $35.

Calls and texts are routed through a FreedomPop application on the smart phone.   Ths underlines that  savvy consumers should not look to MVNOs in isolation for answers about mobile connectivity.

There may be alternatives to the FreedomPop Voicemail.  Since  consumers are unable to port old cell phone numbers during FreedomPop Phone’s ongoing Beta testing period, a good idea is to link a G-mail Account with a new Google Voice number for messages.  Sidebar calling can be done with apps like Google Voice or Talkatone, so one can give the Google Voice number and call the person back using either service.  Google Voice can also move these voice messages into Google Chat.  Google Voice  not only records the message, it sends an email with a transcript (and will even translate it for you). If using this methodology, use the cell phone to authenticate Google Voice.  Necessity is the mother of invention for customizing cellular service for those willing to think outside of the box.

Granted that the sound quality for voice calls is typical of VOIP with a slight latency in signal and what can be characterized as car phone sound quality.  But these are small sacrifices for 200 free voice minutes. 

While FreedomPop cellular service  will have little appeal to “Digerati” who feel compelled to have the latest and greatest phones and think nothing of triple digit cell bills.  But there are some “old school” mobile phone users who are chary about monthly bills who would cotton to a one time charge for a smart phone and not needing to worry about charges for their “emergency” mobile device.  Those who would qualify for a federal Lifeline phone (a.k.a. Obamaphone) would get a much better deal with FreedomPop Phones, but the consumer would need to buy the older handset (which can be found inexpensively on E-Bay).  

As for myself, it is worth considering making FreedomPop a primary mobile carrier.  I use less than 300 voice minutes and 500 texts a month.  However there are times that I use more than 1 Gig of data and I would prefer to have a carrier which allows for Hotspot connections for a tablet. Hence, I will make FreedomPop a secondary phone.

FreedomPop's First Foray in Cheap Cellular Service

FreedomPop is an internet service provider started by Skype co- founder Niklas Zennstrom with a motto "The Internet is a right and not a privilege".  FreedomPop seeks to expand its reach in providing "Free access for all" with its first foray in cheap cellular phone service.

FreedomPop is operating as a Mobile Virtual Network Operator (MVNO) based off of Sprint's network, primarily using the CDMA and WiMax capabilities and eventually using LTE.  FreedomPop is structuring its consumer cellular offering on a freemium model.   A basic consumer receives 200 voice minutes, 500 texts and 500 MB of 4G data along with free calls to other FreedomPop customers for the amazing low price of free!  And there is no contract to boot.

FreedomPop's CEO Stephen Stokols proudly proclaimed that a customer paying $1,500 for cellular service could cut their bill by 2/3rds with FreedomPop.  Stokols said: "That is real value, real savings and a real meteor to the current market dynamics."

How can FreedomPop give consumers gratis basic cellular service?  The Freemium model is designed to entice subscribers to pay a little for more.   Based on its experience offering Freemium service for hotspots, FreedomPop expects 45% of its customers to pay a little more for their low cost monthly plans.   A customer paying $7.99 a month gets 500 anytime voice minutes, unlimited texting and the 500 MB of data.  A customer "splurging" by paying $10.99 a month gets unlimited voice, unlimited texting and 500 MB of data.

Another aspect of the Freemium model is engaging customers in social media.  The FreedomPop hotspots gave consumers opportunities to get more service by speading the word to their friends and participating in sponsors offers.  This is useful for customers who do not mind peer-to-peer marketing or spending their time to save money. 

Much like the shifting spectrums in the cellular communication industry, where FreedomPop will rack up fees is on data.  The basic 500 MB is sufficient only for checking e-mails or viewing static, text based websites. A FreedomPop phone consumer who opts for the Premium data plan gets 1 GB for $10 a month (first month free).  After a consumer uses their alloted monthly data, it is $0.01 a MB, or around $10 a GB. 

As an MVNO, FreedomPop is maximizing Sprint's over-capacity.  Sprint has migrated from the slower 4G WiMax  service to 4G LTE data, which allows MVNOs to utilize the inchoate WiMax mobile data until Sprint stops servicing WiMax data.  Sprint had planned to keep WiMax going through 2015, but Sprint's total acquisition of ClearWire (which provided the WiMax backbone) might change those plans.

Another means which FreedomPop offers value for consumers while providing a profit center is with the handsets.   FreedomPop is selling refurbished Sprint smartphones.  During their beta phase of phone roll-out, FreedomPop is selling refurbished HTC Evo Design phones for $99.99 (but will eventually cost $149.99)  but without contract. 

From a price standpoint, $100 for a no contract smartphone sounds like a good deal.  But the HTC Evo Design is a smartphone with 4.0" inch screen, a single core processer running Android 4.0 OS (Ice Cream Sandwich) with 3G/4G WiMax.  When the HTC Evo Design premiered in October 2011, it was a considered mid range smartphone.   FreedomPop will be selling a two year old refurbished cell phone for $100/$150 when it sells for much less on Ebay.

As a cellular phone consumer, I am not  someone who needs to have the latest and greatest handsets.  I have bought and been happy using some refurbished cellphones.  However, I am chary about paying more than street value for a two year old cell phone without new technology guarantees.  The HTC Evo Design has 4G WiMax which is fine (where available), but a cost conscious consumer should be mindful that his handset may only have a usable shelf life of just over a year, presuming that Sprint does not turn off WiMax prematurely.

FreedomPop hopes to have more handsets for sale later in 2013, some with 4G LTE data capability.  FreedomPop always intends to have a $100 handset available.   FreedomPop may allow for Bring Your Own Devices (BYOD) from Sprint.   There is some speculation that FreedomPop could follow the incremental purchase plans for expensive smartphones, like T-Mobile, AT and T, Verizon Wireless and now Sprint have done, charging perhaps $30 a month to effectively rent a handset.

Another way that FreedomPop's Phone service can offer their inexpensive cellular service is to have Voice Over Internet Protocol (VOIP) voice calls.  Some may fear that VOIP sound quality may be inferior.  However, Verizon Wireless is gearing to start switching  their voice service to Voice Over LTE (VO-LTE) in late 2014.  FreedomPop Phone minimizes data strain to their MVNO system by prompting handsets to use WiFi whenever available.

For cell phone users who are heeding the cellular call for change, if someone plans to switch to FreedomPop Phone, be aware that WiMax phones may have to be replaced in a year. If a cellular phone customer uses mobile internet for more than occasional  quick peeks on the world wide web, it would behoove them to get more data from FreedomPop, either through the Freemium offers or purchasing an additional data plan.

Personally, I would be quite interested with FreedomPop cellular phone service if they allow BYOD, as I have a perfectly good Sprint HTC Evo to use.  If I can be assured that I have hotspot capability, I would certainly pay for premium data services. 

For cost conscious cellular consumers who use little to no data, FreedomPop cellular service would be an excellent choice rather than Pay-Lo or Assurance Wireless.   FreedomPop's Premium plan would be around 1/3 of the cost of Ting's Medium Plan (500 voice minutes , 1000 texts and 500 MB data), but Ting offers excellent weekday phone support and allows for hotspots. 

Sometimes free is not always the right choice.  Determine whether one is willing to buy a refurbished smartphone for virtually no monthly cost of commitment.  Then discern what sort of mobile data usage one will be comfortable with on your cell phone.