FreedomPop to offer iPhone case free 1GB of wireless data

[503ducati]

http://techcrunch.com/2012/03/20/fre...-data-for-all/


FreedomPop’s New iPhone Case Promises Users Free Wireless Data







Skype founder Niklas Zennstrom’s new FreedomPop project was initially shrouded in secrecy, but they’ve recently become a bit more talkative about how the company plans to offer “free wireless broadband” to their customers.

FreedomPop VP of Marketing Tony Miller spilled the beans about the company’s WiMax-based freemium wireless data service to Forbes, but left yet another question unanswered — what’s the “innovative” new wireless device they’ve got in the works?

Well, according to a high-level source inside FreedomPop, it’s an iPhone 4/4S case… with an integrated WiMax radio. Think of it as a mobile hotspot squeezed into a case — I’m told that it’ll run for up to 30 hours, and can share its Internet connection with up to eight devices (including the iPhone that it’s attached).

As I understand it, each FreedomPop iPhone case user will have free access to a 1GB data plan right off the bat. That’s the only plan that FreedomPop will offer for the sleeve, though their overage fees seem strangely familiar: each MB over the limit will cost a penny, which means every gigabyte over the limit is $10. That’s not to say that FreedomPop users can ditch their carriers entirely — the case alone isn’t enough to let users place voice calls, and major carriers generally won’t let you buy a smartphone without a data plan to go with it.

There are still some costs involved though, specifically a deposit that each user has to shell out for a WiMax-friendly iPhone case of their own. My source tells me that the deposit will be under $100, and will be fully refundable to customers if they ever choose to discontinue their service so long as the sleeve is still in good condition.

Users will also be running on ClearWire’s 4G network, and while that isn’t as fast as AT&T or Verizon LTE, it’s often more than enough to give 3G networks a run for their money (depending on their location, anyway). Their reliance on ClearWire could prove to be a bit of a stumbling block since it doesn’t have the biggest footprint, but FreedomPop is currently in talks with other “major” wireless providers about the possibility of branching out.

FreedomPop isn’t doing this out of the goodness of their hearts — they’re obviously in it for some cold, hard cash. Their plan is to make money off of a slew of value-added services they intend to roll out in coming months — it’s their hope that they’ll be able to convert 10-15% of their free users into paying customers, which will subsidize the service for everyone else. Whether or not that actually pans out is another question entirely, but we’ll have to wait and see how much momentum FreedomPop will be able to build first.

As far as how innovative this thing is, well, that’s debatable. It’s a concept that we’ve seen pop up a few times in the past, perhaps most notably when Sprint started offering the ZTE Peel, an add-on for the iPod Touch that gave the device a persistent wireless Internet connection. But hey, free Internet thanks to some low-cost, low-risk hardware? Giddy up.

[NGeorge]

I like the concept--the Peel was actually a great idea.

That said, because this will be packed up against the phone and at 2.5 Ghz, the RF performance will be flat out terrible--I guess for free you can't complain! That said, for more than free, you can--and that will be key in converting that 10-15% of users.

I really hope to see a "Clear iSpot" or "Rover Puck" type device in addition to the Peel type device that has leaked--because 1. Everyone doesn't have an iPhone and 2. the aforementioned RF.

Either way I'll probably snag one since I can now add "glove box internet access" next to the "glove box phone"--but if they release a more traditional hotspot (I'm sure Clear has a ton of Pucks laying around they could rebrand lol) they would probably do a better job in the upselling department. Even better if they released something that can access 3G--instant $15 upcharge per month if they can strike a deal with Sprint so they can basically say "yes, we know our free 4G coverage blows so bad that we can't even give it away--but hey if you pay us $15 you can at least get a signal on a very slow 3G network" lol

--Nat

[Protagonist]

What is the target customer here? Someone with an iPhone 4 but no data plan? Or someone who would rather put a big ugly case on their iPhone for the privilege of paying someone else $10/gb instead of just paying their carrier that for any overages? Very few people are so bothered by the iPhone's lack of "4g" that they would use this thing.

Hopefully Skype guy self financed this and isn't going to be losing anyone else's money on this venture.

[503ducati]

I like the concept--the Peel was actually a great idea.

That said, because this will be packed up against the phone and at 2.5 Ghz, the RF performance will be flat out terrible--I guess for free you can't complain! That said, for more than free, you can--and that will be key in converting that 10-15% of users.

I really hope to see a "Clear iSpot" or "Rover Puck" type device in addition to the Peel type device that has leaked--because 1. Everyone doesn't have an iPhone and 2. the aforementioned RF.

Either way I'll probably snag one since I can now add "glove box internet access" next to the "glove box phone"--but if they release a more traditional hotspot (I'm sure Clear has a ton of Pucks laying around they could rebrand lol) they would probably do a better job in the upselling department. Even better if they released something that can access 3G--instant $15 upcharge per month if they can strike a deal with Sprint so they can basically say "yes, we know our free 4G coverage blows so bad that we can't even give it away--but hey if you pay us $15 you can at least get a signal on a very slow 3G network" lol

--Nat

That company did state they are going to launch with a data stick and a hotspot device as well.

[akayareal]

This is better marketed towards iPod Touch users especially if they add a extended battery to it.

Pass that, they are better with a hotspot so those that dont have a 3g or LTE iPad would jump this. Granted, 1gb can go by quick, but if your mainly on wifi, this is a great deal to have a free gb of wimax a month. I would do this in a heart beat for the times I dont want to tether my phone to my laptop and turning my laptop in a hotspot.

[503ducati]

What is the target customer here? Someone with an iPhone 4 but no data plan? Or someone who would rather put a big ugly case on their iPhone for the privilege of paying someone else $10/gb instead of just paying their carrier that for any overages? Very few people are so bothered by the iPhone's lack of "4g" that they would use this thing.

Hopefully Skype guy self financed this and isn't going to be losing anyone else's money on this venture.

Here's a write up today asking the same question; http://www.fiercewireless.com/story/...-it/2012-03-21

[irev210]

Sounds like the target customer is a t-mobile user with an iPhone and no dataplan. Not a large market, but surprisingly, there are a few.

[akayareal]

FreedomPop swaps Clearwire’s WiMAX for Sprint’s LTE

FreedomPop, a soon-to-launch mobile virtual network operator (MVNO) focusing solely on data, reached an agreement with Sprint to resell its 3G and 4G data access. The deal will allow FreedomPop to trade up on its agreement with Clearwire, exchanging its limited 72-market WiMAX footprint for Sprint’s eventual near-nationwide LTE coverage.

VP of marketing Tony Miller said that FreedomPop still plans to launch late this summer or in early fall with Clearwire-powered WiMAX modems and its even more anticipated WiMAX sleeve, which fits over the iPhone 4 and 4S. “We’re going to launch with Clearwire, but we’ll be live with Sprint by the end of the year,” Miller said.

At that point FreedomPop plans to offer tri-mode WiMAX-LTE-CDMA modems and sleeves, but as Sprint’s LTE network nears completion in 2013, it will begin phasing out WiMAX radios and rely solely on its Sprint network. Miller said FreedomPop may revisit the Clearwire deal in 2013 if the carrier can launch its own LTE network as planned, but even then Clearwire has only committed to the same limited LTE footprint it currently covers with WiMAX.

What’s astonishing is that Sprint is throwing the gates of its LTE network wide open to wholesale partners shortly after it launches next week. Typically, operators keep their latest and greatest technologies for themselves – it took years before most carriers started offering MVNOs access to their 3G networks. But according to Miller, Sprint isn’t just being liberal with its network, it’s also being flexible in its pricing policies.

[503ducati]

They join Ting another Sprint wholesale partner and MVNO operator in offering prepaid pay as you go 4G LTE services via the Sprint network.

Does this strengthen the possibility of Sprint offering their own prepaid LTE via Boost Mobile and Virgin Mobile? or does Sprint just plan on letting a small amount of wholesale subs join in?

[akayareal]

I dont see them crossing their prepaid companies over to LTE until the Clear deal expires.