FreedomPop, a wireless internet, and mobile phone service provider, which offers limited free voice and data services will launch in Spain this summer with a new alluring offer –free WhatsApp messaging and calling regardless of usage. Considering that 70 percent of mobile consumers in Spain use WhatsApp, the company is targeting 500,000 to 1 million Spanish users within two years.
FreedomPop is currently available only in the US and the UK, offering limited buckets of free voice, text, and data, encouraging its users to buy value-added services such as additional data, a local global hotspot and local numbers from some countries that can be used to receive calls in other markets. For instance, in the US, up to 500 MB data is free, with upgrades ranging from $9.99 to $59.99.
CEO and co-founder Stephen Stokols said, “WhatsApp is huge in Spain, accounting for over 90 percent of all texting and over 70 percent penetration. So ‘free texts’ is worthless but ‘free WhatsApp’ is meaningful.”
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Free WhatsApp in Spain will be the first timeFreedomPop zero-rates a third party app as part of its free tier, but not the last. Stephen further said, "We are looking to roll out zero-rating in conjunction with other apps, e.g. Line in Korea. This helps us prove the capability and puts FreedomPop in a position to lead the charge, given Internet.org has struggled to get carriers on board, particularly in developed markets.”
“We are hoping we can not only show that zero rate models can be profitable but also force other carriers (starting in Spain) to embrace this model instead of resisting it,” Stephen said.
Along with one strong investor - Intel - that FreedomPop already has on the platter, the company received a $50 million worth funding in January. The new investment will be used to feed the growth of its service and accelerate its international expansion in markets in Europe, Asia and South America, including the launch of its new global hotspot and SIM, initially covering the European region.
In the US and the UK, over 50 percent of current users do not pay anything, and heavier users pay a fraction of what competitive plans cost.