Home > Business Idea, Future Business Ideas, OTP Survival Ideas, telecom revenue 2.0 > Can an operator give away 1GB/month or more for free? This MVNO believes it can…

Can an operator give away 1GB/month or more for free? This MVNO believes it can…


After Free.fr in France, the US is also getting its “Enfant Terrible” of the telecom market. Just when everybody thought becoming Bitpipes would be the way forward, this US MVNO is going to give away broadband for free. We are talking about FreedomPop. FreedomPoP will give subscribers 1GB/month for free. Except for Freemium, it will also copy other dotcom techniques like Social Marketing & Sales. For every subscriber you bring, you get more bandwidth. Additionally you can swap the bandwidth that you do not use with others. FreedomPop will also provide some Wimax-iPhone-shell that allows multiple users to connect.

How are they going to make money?

The short answer: still unknown. The long answer: Skype founders are behind the company so VoIP is probably charged. People that spend more than 1GB will have to pay $0.01/MB or $10/GB. There is also talk about making money with value-added services.

Conclusion

It is still too early to understand the impact of what FreedomPop will have on the 4G mobile market in the US. However the fact that Freemium, Social Marketing & Sales, etc. are used means that finally some operator is doing their homework and translating Web practices into Telecom practices…

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