Success in Disruption

© 2014 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.

uccess in Disruption

From startup to standout MVNO -FreedomPop finds footing in the mobile market

FreedomPop, which offers free and low-cost mobile phone and Internet services via Sprint Corp.’s network, has gone from a startup business to a standout MVNO competitor. The 3-year-old company that operateson a freemium-pricing model nowhas 80 employees and is increasingsubscribers and revenue by50 percent quarter over quarter. Itcould reach 1 million subscribersnext year, according to Bloomberg.

How It WorksThe company’s freemium service model provides customers with free 4G mobile phone service, wireless internet and home broadband.

Mauricio Sastre, FreedomPop’s VP of product, credits part of FreedomPop’s success to its carrier Sprint Wholesale, which has allowed it to reach a larger market.

“Our approach was to start small; be unassuming. Call it a BETA; it’s understanding what the levers are in using (the freemium) pricing model and evolving,” he said. “Once we started using Sprint as our backbone, essentially, it broadened our market pretty significantly. I’d say we are still pretty small, but we’re starting now to compete with larger MVNOs.”

Selecting a Wireless ProviderUnderstanding that securing a solid wireless provider would be crucial to its success, FreedomPop execs first tested other carriers and studied the market before making the switch to Sprint. The affordable cost and growing coverage area were two main reasons FreedomPop chose to work with the company, said Sastre, who pointed out that FreedomPop’s reliance on a freemium model means that it must be able to offer inexpensive service, while still giving customers access to best-in-class devices and service.

“The sweet spot we are trying to address is pricing,” Sastre said about his Los Angeles-based company.

“There’s not enough folks like us trying to challenge and disrupt the pricing that’s out there.”

In order to succeed with its goal of low cost and wide coverage areas, Sastre said FreedomPop needed a provider who was vested in helping it succeed, as opposed to simply selling services and then disappearing. Sprint has been very involved with helping FreedomPops meet its goals, and thus serving that need.

Success in Disruption

© 2014 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.

Mr. Mauricio Sastre serves as Vice President of Product at FreedomPop. Sastre sets the product vision and strategy for web and mobile products and oversees its product road map and execution. Sastre has over 13 years of internet product and technology experience and currently leads all aspects of wireless device innovation and manufacturing.

FreedomPop’s Vice President of Product

“We hear from them week in and week out,” Sastre said. “They really try to share in our successes, and when we stumble, they really try to help us out with getting past the stumbling blocks.”

FreedomPop’s Commitment to Customer ServiceBecause FreedomPop operates directly to the consumer and has no retail outlets, it’s imperative for it to meet the customers needs from the start.

“It’s sourcing the right devices, getting them activated properly, getting the logistics right, making sure that when the consumer gets the device that it operates properly and that there are no issues,” Sastre said.

Once FreedomPop has landed a client, the company doesn’t stop wooing him, however. Instead, Sastre said the mission is to keep that client happy by ensuring each product is in tip-top shape, and by also offering the latest devices. From a features standpoint, the company is always searching for ways to optimize pricing and delivering value.

“With consumers, it’s being able to give away something, bring people in and show them how great it can be,” Sastre said. “Usage patterns are usage patterns, and some percentage of folks will use more than the free allotment, and now you have revenue.”

For more information on creating a successful MVNO, contact your Sprint Wholesale sales consultant or check out wholesale.sprint.com.

Success in Disruption

© 2014 Sprint. This information is subject to Sprint policies regarding use and is the property of Sprint and/or its relevant affiliates and may contain restricted, confidential or privileged materials intended for the sole use of the intended recipient. Any review, use, distribution or disclosure is prohibited without authorization.

wholesale.sprint.com

“They (Sprint) really try to share in our successes and when we stumble, they really try to help us out with getting past the stumbling blocks”