The disruptive MVNO FreedomPop was recently quoted saying that the latest business model will ensure that UK operators think twice on ways they approach mobile space.
The CEO, Stephen Stokols is looking forward to adding more than 100,000 subscribers to the free mobile service of FreedomPop within the first month. The CEO told Mobile that the traditional MNOs would not be in a position to compete with modern digital services on engadget.com that will be offered by FreedomPop. He added that MVNO would boost up the acceleration toward services that will be more value-added.
Stokols claimed that their business model is supported by technology, and that is something that provides then with the needed advantage. While other operators are trying their best to make money from texts, data and voice, FreedomPop is not trying to gain from that line. It goes for particular technology to give value-added services, and the company has invested in this by building technology that is able to support a business model. The firm has the relevant technology to offer the best conversion into various digital services. Stokols believes that the traditional MNOs are basically marketing companies, and not really technology companies.
Stokols explained that the move was aimed at making the services on voice and data be a commodity. The firm is planning to remove the £5 and £10 tariffs, rather than look for add-ons features as a strategy for making money. Stokols believes that there is already a huge market demand for this kind of value proposition, and their current business model will offer an advantage.
The MVNO has come up with various distribution channels in UK, but Stokols has explained that the FreedomPop will not readily put them into use. He explained that the firm was not going to overwhelm itself and it is also not troubled about distribution. Before the firm turns on distribution, it will be about 4 to 8 weeks. In the first 8 weeks, the firm will be having excess demand and a retail will not be necessary at the moment. That is their disruptive value; with free proposition, distribution and marketing should not necessarily be relied upon.