FreedomPop Aims for Explosive Growth in UK Market
CEO Stephen Stokols can view his return to the U.K. as just a part of FreedomPop’s burgeoning business plan, but there is definitely more to it than that. Stokols used to work in the United Kingdom and it was there, in 2011, that he initially proposed FreedomPop to the BT Board in order to attain funding. They passed on his idea and Stokols ended up going back to the United States in order to launch his company. In the past five or so years we have seen FreedomPop turn into one of the hottest telecom companies in the country and now they are aiming to expand their borders and make a play for the U.K., as reported by The Telegraph.
For FreedomPop there was a moment in time that would seal their fate. For the past six months or so the company on telegraph.co.uk was allegedly involved in M&A discussion with several large telecom companies. The rumors persisted and it was thought that FreedomPop would sell for a handsome $450 million proposal. Instead, CEO Stokols called any thought of selling as ‘premature’ and instead doubled down on making FreedomPop one of the biggest freemium phone companies on the planet. Since then the company has pulled in new investments and now is sitting on the edge of a huge expansion into the U.K.
FreedomPop is launching their core program across the pond as part of the first phase of their international expansion proposal which will be backed by venture capitalists. U.K. residents can sign up for FreedomPop’s free basic plan by registering online. According to Stokols and Co. there were at least 250,000 interested Britons in signing up. However, FreedomPop will reign in the amount of allowed subscribers for the first few months as they try to maintain and control the outward growth. The basic plan that is on offer consists of a 200 minute, 200 text, 200 MB of data package with options to expand for additional prices. The core plan will be offered via a SIM card launch but will eventually move into actual hardware production.
FreedomPop is unique in that they don’t need every customer to pay any money in order to become ‘green’ in cash flow. According to Stephen Stokols they only need 50,000 paid subscribers in order to become ‘cash flow positive’. This works out to anywhere from 33% to 50% of their actual subscriber base in the U.K.