After having launched its free wireless broadband service one year back, a startup called FreedomPop has now rolled out a `free' cellular service for smartphone users.
FreedomPop is backed by a Skype founder; and the company claims that it has more than 100,000 users. Running on Sprint's wireless network, the free FreedomPop service offers 500MB of data, 500 text messages and 200 voice minutes for free.
According to FreedomPop's CEO and co-founder Stephen Stokols, the company is able to offer free service because it saves on wholesale costs due to the use of voice over internet protocol (VOIP) technology, rather than the conventional voice service.
The smartphone service launched by FreedomPop is, as of now, compatible with only one handset - the refurbished HTC Evo Design, which is being sold by FreedomPop for $99 along with its free service. However, the company plans to add other handsets as well as all Sprint devices to its service by the end of 2013.
So far as FreedomPop's money-making aspect is concerned, Stokols said that the company is hoping customers that sign up to buy options, which chiefly include a feature that ensures faster speeds or an unlimited texting and voice-minutes package that costs $11 per a month.
About the FreedomPop business strategy, Stokols said: "We aren't trying to make money on the network - we are trying to not lose money on the network."
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