FreedomPop, located in Los Angeles, California, is a wireless and internet service provider offering consumers 500 megabytes of data, 200 voice minutes and 500 text minutes for free each month. Increments in usage cost as little as two cents a megabyte for data, and one penny for text messaging. According to Fortune Magazine, FreedomPop, accepted a 30 million dollar funding plan through a Series B financing, with Partech Ventures.
While FreedomPop is a mobile virtual network operator (MVNO), and it buys its bandwidth at wholesale prices from Sprint. Google does the same thing, but with T-Mobile; only Google charges start at $1.00. Neither company owns any wireless infrastructure. FreedomPop sells refurbished Samsung phones under its own brand name, and premium services are also offered which bring in the money for young company. Rollover plans, unlimited plans, anonymous browsing features, and international phone numbers are among premium services offered by MVNO. These services range in price from three to ten dollars, and with most customers buying about two plans a month, the proceeds cover the cost of the free users and give FreedomPop a profit of about $7.50 a month per connection. While that may not seem like much, by not maintaining an infrastructure FreedomPop has very little overhead expense.
FreedomPop is bucking the major carriers with its innovative approach to mobile industry. Bids were made on the company in the hundreds of millions, but it chose to go with the Series B financing to grow and raise its value.