MVNO FreedomPop launched an in-home mobile broadband service that will go after cable and DSL customers by offering 1 GB of data for free. The company, which provides mobile WiMAX service using Clearwire's (NASDAQ:CLWR) network, will offer the free data to customers who purchase its Hub Burst--a modem that retails for $89 (including all fees and shipping costs).
Users will receive 1 GB of data per month for free and then can earn more data through partner promotions or via friend referrals. They can also pay for additional data at $9.99 for 10 GB, $5 for 1 GB or $.005 per MB.
According to FreedomPop COO Steve Sesar, the company decided to enter the in-home broadband market because it believes there has not been much innovation in this area. Similar to FreedomPop's other mobile data offerings, customers will be able to purchase the Hub Burst via the Web.
FreedomPop currently offers mobile data service to customers who purchase a sleeve that attaches to an Apple (NASDAQ:AAPL) iPhone 4/4S or iPod touch and provides them with WiMAX service via Clearwire. The company also sells a USB modem, called Bolt, for $49 and a mobile hotspot, called Photon, for $89.
Sesar said that FreedomPop usage data so far indicates that most people use less than 5.1 GB per month, meaning that the $10 per month price plan should provide plenty of data for most users. He noted that the company has found that its customers use less data than expected, and because of this FreedomPop will be able to increase the amount of free data it provides to customers in the coming months.
Sesar added that FreedomPop's registration page has a stringent qualifying process to eliminate people who may not be in Clearwire's service area. "We know through complex algorithms the probability of throughput at your address," he said. "We want to minimize returns and ensure a good experience."
FreedomPop is initially offering service over Clearwire's network but plans to expand its service to Sprint Nextel's (NYSE:S) CDMA and LTE networks in the first quarter of 2013.
- see this release
FreedomPop plans to target cable, wireline subs with in-home mobile broadband
MVNO FreedomPop launches freemium mobile WiMAX service via Clearwire
Prediction: Failure rate will be high for low-cost MVNOs
MVNO FreedomPop to launch WiMAX iPod touch case, details pricing