There are many occasions in which we look to abroad with envy. If the rates of Free France, the operator for young Irish 48 months, the connections of super fast speeds of Koreans (which are already beginning to reach Spain)… And we don’t have to forget of FreedomPop, the operator that offers a free basic rate in USA and Great Britain.
Long ago that this particular virtual announced that you among its global expansion plans was the arrival to Spain, and today we can confirm that it will be. FreedomPop will arrive in Spain this summer while maintaining its strategy of offering a free basic fare with calls, messages and data, including also free roaming in 31 countries. But in addition Spain will have an added advantage: use of unlimited WhatsApp.
FreedomPop has taken the world of mobile operators the freemium model is it being imposed each day more applications and games for mobile phones. His strategy happens by giving a basic fare (United Kingdom offers for example 200 minutes, 200 messages and 200 Megs and U.S. 500 of each) free forever. That model is which will come to Spain this summer.
Unknown time coverage that will include the company and the exact amount of minutes, messages and megabytes to that offer, although we have the track that will be featured in United Kingdom and United States. But FreedomPop will introduce a novelty in its arrival to Spain, not available in other countries: the use of WhatsApp will not deduct megs rate (separate chapter deserves the gap in the network neutrality that entails). In addition, there will also be free roaming (31 countries that include several European and United States).
Where does the trick then?
A fee free and forever? It is logical to think that there has to be some trick. Trick as it says no there, but obviously they have to draw income from somewhere. First of all is that FreedomPop is based solely on the data, now that both calls and messages are make or send from your app, so it the service is only available on Android and iOS.
The business is in the megabytes extra and added services, that included calls are VoIP
Is it not possible then make life calls? Yes, but only from Android and when the app determines that there is sufficient good coverage to use VoIP, although that service has a cost, which will be around the two euros a month. The same goes for excess minutes and megabytes or other additional services, which is where FreedomPop get their income.
The company already has worldwide more than one million customers and the initial forecast for Spain is to reach 100,000 clients during this year, to point directly to the million in its first two years of life. To start FreedomPop start out in beta, accepting only a small number of customers, from a few months to open to anyone. High and portability will have to be online and the cost to take the SIM will be five euros.
Will they get to be profitable in Spain?
Seen how it works FreedomPop and in that you trust to be profitable, we have to ask ourselves about its possible success in Spain. With a free, although basic rate, It seems that clients are insured, especially in a country where as we see the word “free” us abalanzamos about anything. Overall, it’s free.
Profitability will depend on customers who hire bonds or extra services, 50% in other markets
From FreedomPop they have assured us that 50% of their current customers have never paid anything, they have enough with the free basic fare, but the other 50% if that recourse to the hiring of additional information or additional services. Doubt that we It is if that mix of customers who do not pay face to those who pay be held balanced in Spain.
Also, offer free unlimited WhatsApp is a point in favor of getting customers, but also a point against that users buy megs extra. Besides its commitment to the VoIP is risky, since that is also that of Tuenti, which does not seem to be winning many customers with her. Therefore, We have to wait to know the details of the basic rate and the price of the megs extra to be able to draw more conclusions.