In a huge leap toward building their global empire based on free cell phone service. FreedomPop raised $30 million in funding. The CEO and Co-Founder, Stephen Stokols, said that they are growing their business independently and are not looking to sell. Though there have been many offers on the table, they have been rejected due to the companies young 18 months in the business. Their goal is to raise another $50 million in the next year.
The funding they collected will allow them to branch out across the United States and globally. Right now they are just in California, but they are hopeful to get out beyond that area soon. With growth margins at more than 50% for last year, they are optimistic at this point. They hope to have one million users by the end of 2015. They currently are focused on upselling their extra data to cover the costs. Customers get 500 free voice minutes, as well as other services.
They buy minutes from the big carriers, which they resell to their customer base. One reason they can keep their costs so low is how much they pay. They actually pay about 1/10th of what it costs big carriers to keep their lines operational. With such low overhead, they offer great services for free and add-ons for less. Their average cost per person is an amazingly low $5.00. However, the average cost for the big names is about $380 per user. They don’t currently have a huge customer service department, but that is all in the works. They want to focus on their customers having a pleasant experience.
With a start in the right direction, FreedomPop is the company to watch. The ‘bare bones’ cell phone service is what many budget minded people are looking for.