• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

2

Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster

3

Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place

1

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year

2

Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster

3

Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place
TechMobile

FreedomPop heads to Southeast Asia with its free mobile plan in tow

By
Kevin Fitchard
Kevin Fitchard
Down Arrow Button Icon
By
Kevin Fitchard
Kevin Fitchard
Down Arrow Button Icon
July 30, 2015, 9:02 AM ET
General Images Of Vietnam Economy As Anti-China Riots Spoil Vietnam Dollar Bond Rally
A man uses a mobile phone in Hanoi, Vietnam Photograph by Brent Lewin — Bloomberg via Getty Images
Add Fortune on Google for similar content.

Startup wireless operator FreedomPop is taking its free mobile phone service overseas to Southeast Asia with a little help from a local corporation. Pan-Asian mobile operator Axiata is launching FreedomPop’s service in multiple countries and is leading a strategic investment round of $10 million in the Los Angeles startup, the company revealed today.

FreedomPop has made a name for itself in the U.S. by offering a gratis mobile plan—which includes 200 voice minutes, 500 text messages and 500 MBs of data each month—to all of its subscribers. It makes its money by selling customers additional voice and data access if they go over their free monthly allotments and by upselling its customers on value-added services, such as international numbers, long distance, phone insurance and security features.

That business model has earned FreedomPop nearly 1 million customers since it launched in the U.S. in 2012. According to CEO and co-founder Stephen Stokols it was always FreedomPop’s intention to take its “freemium” concept global as it can scale only so far in the U.S. The operator recently announced plans to launch in the U.K. this year, but the Axiata deal represents a far bigger opportunity, Stokols says. The multinational carrier runs networks in seven countries (Malaysia, Indonesia, India, Bangladesh, Singapore, Cambodia and Sri Lanka) hosting a collective 230 million subscribers. That makes it twice the size of Verizon Wireless in terms of connections.

While expanding into a new country is normally a very complicated and costly ordeal for a mobile operator– especially a startup– that involves buying spectrum and building networks, FreedomPop avoids that complexity by being a network-less operator. It partners with established players to use their infrastructure. In the U.S., FreedomPop functions as a mobile virtual network operator (MVNO) buying voice and capacity wholesale from Sprint.

In Southeast Asia, though, Axiata will sell the FreedomPop service directly, making it a sub-brand of its main mobile brand in the different countries in which it operates, Stokols says. That’s a strategy U.S. operators have adopted as well to target different demographics. For instance, Sprint (S) owns the Virgin Mobile brand in the U.S. and T-Mobile (TMUS) owns the MetroPCS name.

Since Axiata is a big incumbent operator in many of these Asian countries, it risked losing paid customers to FreedomPop’s freemium plans, so by partnering with the operator it can keep those customers on its own networks, Stokols says. “Axiata is calling this a disruptive brand,” Stokols says. “They ultimately want to lead the cannibalization of their own market.”

Axiata and FreedomPop plan to expand into Asian countries where Axiata currently doesn’t operate. To do that they’ll use the same MVNO model FreedomPop has adopted in the U.S., buying network time from local service providers. Stokols wouldn’t reveal which countries FreedomPop would launch in first, but he says Axiata wants to move aggressively, and consumers could see the first free mobile plans debut in Southeast Asia by late this year or early next.

The $10 million strategic investment comes on top of a $30 million Series B round FreedomPop announced last month. In total, FreedomPop has raised $59 million.

FreedomPop isn’t the only startup operator trying to disrupt the mobile industry with a new approach to selling wireless service. In the U.S., MVNOs like Republic Wireless, Ting and Karma are challenging the established operators by offering mobile data either on the cheap or as a pure commodity. Even huge companies are getting into the game. Google (GOOGL) recently launched its own beta MVNO called Project Fi as a way to showcase its mobile services and promote a metered model for data pricing.

The attention FreedomPop is getting from mobile operators might prove contagious. With time, some MVNOs have become enormous rivaling other established telecommunication companies. For instance, América Móvil-owned TracFone now boasts 26 million subscribers in the U.S.

If upstart operators start stealing too many of the incumbents core subscribers, the big operators may be forced to adopt some of their pricing strategies or partner with them directly. The other alternative would be to kill them off entirely. Since MVNOs depend on wholesale agreements with the big operators, all the incumbents would need to do is cut off the network spigot.

About the Author
By Kevin Fitchard
See full bioRight Arrow Button Icon
Add Fortune on Google for similar content.

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

Microsoft CEO Satya Nadella on April 23, 2026 in Sydney, Australia. (Photo: George Chan/Getty Images)
NewslettersFortune Tech
Microsoft may cut thousands more jobs in a bid to control costs
By Andrew NuscaJuly 1, 2026
18 minutes ago
As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
Big TechNvidia
As Big Tech showers employees with perks to win the talent war, Nvidia built a nearly $5 trillion company by making people pay for their own lunch
By Marco Quiroz-GutierrezJuly 1, 2026
2 hours ago
Dell’s AI boom is real, but so is the profit margin hit nobody is pricing in
AIDell Technologies
Dell’s AI boom is real, but so is the profit margin hit nobody is pricing in
By Mia OsmonbekovJune 30, 2026
14 hours ago
Image of colored bar charts with one being pushed up.
NewslettersEye on AI
AI is minting billion-dollar companies faster than before
By Beatrice NolanJune 30, 2026
16 hours ago
Anthropic CEO Dario Amodei pointing to his head.
AIAnthropic
At the heart of Anthropic’s clashes with the U.S. government, a decision not to play by the new rules of Trump’s Washington
By Jeremy KahnJune 30, 2026
20 hours ago
wb
CommentaryLeadership
I grew BDO from $600 million to $3.4 billion. Here’s the 3-part formula that made it possible
By Wayne BersonJune 30, 2026
21 hours ago

Most Popular

MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
Success
MacKenzie Scott alone accounted for one-third of America's $19.2 billion in megagifts last year
By Sydney LakeJune 25, 2026
6 days ago
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
Success
Philanthropy leader at Warren Buffett and Bill Gates’ Giving Pledge says children of billionaires are pushing them to give their wealth away faster
By Preston ForeJune 27, 2026
4 days ago
Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place
Success
Elon Musk on MacKenzie Scott giving away $26 billion of her fortune: 'Sadly,' it makes the world a worse place
By Sydney LakeJune 29, 2026
2 days ago
'Humanity has chosen to become idiots': This Brown professor switched to take-home exams after a mass shooting and discovered mass cheating
AI
'Humanity has chosen to become idiots': This Brown professor switched to take-home exams after a mass shooting and discovered mass cheating
By Catherina GioinoJune 29, 2026
1 day ago
The U.S. Army is opening military bases to private billions — here's why that changes everything for the next 250 years
Commentary
The U.S. Army is opening military bases to private billions — here's why that changes everything for the next 250 years
By Marc AndersenJune 30, 2026
22 hours ago
The retired college professor fighting a $313 trespassing ticket in Wisconsin thinks he's part of a national struggle
Environment
The retired college professor fighting a $313 trespassing ticket in Wisconsin thinks he's part of a national struggle
By Catherina GioinoJune 28, 2026
3 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.