American start-up FreedomPop is hoping to muscle in on the pay-as-you-go and cheap mobile phone contracts by offering a SIM-only service with free services offering 200 minutes, text and data.
The service is launching as a virtual network operator using Three’s mobile network to provide users with 200 minutes, 200 texts and 200MB of data for free. FreedomPop has not said whether there will be an upfront cost for the Sim.
This is different to most mobile phone service providers because it only uses mobile data, employing an app available for Android and iPhone to send and receive text messages and make calls that are not carried over the traditional mobile voice network.
SmartIPX’s CEO Paul Tindley said: “This is an interesting new entrant to the European MVNO (mobile virtual network operator) market. A reminder that the market is heating up and that to compete new entrants and incumbents alike need to be sure that they are focused on what they do best; building communities and servicing customers.”
FreedomPop’s successful low cost entry for either low users (elderly) or those with limited mobile requirements is part of a flurry of MVNO activity in the UK demonstrating the vibrancy of the marketplace.
Tindley added: “As a technical partner to MVNOs like FreedomPop, SmartIPX understands how to deliver the network infrastructure, intelligence and expertise to ensure any MVNO platform runs smoothly.”