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The Threat of FreedomPop

Everyone has heard of the big names in mobile phone services: Verizon, Sprint, AT&T. However, a new name is emerging: FreedomPop. This new, stand alone business offers the same services as Verizon, Sprint, and AT&T, but with a difference: the cost is much lower and the services can be used alone. This means that the 10 million WiFi hotspots that FreedomPop offers can be accessed without a full phone coverage plan. The hotspots can also be accessed whether the user has a carrier or not, and it’s only five dollars no matter what the consumer’s other costs for a data plan. The five dollar WiFi access offers instant connection to Google and FreedomPop hotspots in the USA. Some of the big name retailers (Burger King and Starbucks, for example) are partnering up with FreedomPop for the use of these hotspots, which seems to show that other carriers are cooperating with this new business.

If big brand phone carriers weren’t already scared, the factoid that FreedomPop is about to open up a UK branch should scare them. With as much competition in the UK as there is, FreedomPop is starting small with a SIMcard only service. No WiFi hotspots are available yet, but the SIM cards carry the same limits as what has been described the most basic plan in the UK. In addition, there has been heavy reinforcement on free calls internationally – including 60 countries outside the UK. Any data that remains unused at the end of the month in the UK will rollover to the next month. How many other services offer this kind of coverage for such a low price?

And FreedomPop in the UK seems to cut out the middle man, accounting for the low prices. Much of the business is done online, with no need for consumers to drive to a store to see the prices or features of any plan. Without buying data in the same way many other businesses do, FreedomPop offers a large plan for a fraction of the big names.

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