Good news for users looking for free voice, text and internet for their mobile phone. FreedomPop raised another $30M in funding for a new service, currently in Beta, that provides just that. TechCrunch reported the company is growing its revenue around 25% each quarter with gross service margins at 50%.
There have been numerous offers from major tech companies to buyout FreedomPop, but they decided not to sell yet. The company is looking to build a billion dollar company by offering service bundles to consumers for free, but charging for premium services and add-ons.
By the end of 2015, they plan on having 1 million customers. UK will be the next market in their plans to go global. Their goal is to provide broadband service free, from anywhere, including overseas. They are able to provide this by paying for only the data their customers use and not buying voice or text from the major carriers. They are able to acquire new customers for a couple dollars compared to the hundreds of dollars a major carrier pays for new customers.
Currently, their growth has not provided much in the customer service department, but with this new round of funding, they will take a portion of the 30 million dollars to build up customer service. There is no physical location customers can go, like the nearest Verizon store for any issues. This service is completely online. There is little to no customer service now. The CEO and co-founder Stephen Stokols does not provide specifics on what the company will do to provide customer service, but he did say “We want our customer service people to be ahead of demand.”
FreedomPop is not the only player in the free wifi game. Google Fi is a product offered by Google to provide world-wide wifi for free. Microsoft is even trying to build competition by gaining mobile users.