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

Trendingnow

1

Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI

2

Former top Russian official admits the country is over Putin and can 'imagine a future without him' — even elites bail as Kremlin seizes their assets 

3

The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises

1

Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI

2

Former top Russian official admits the country is over Putin and can 'imagine a future without him' — even elites bail as Kremlin seizes their assets 

3

The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
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

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

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

murdochs
CommentaryMedia
OpenAI paid $100 million for a talk show. James Murdoch is eyeing an even bigger deal. The hot new asset class is humanity
By Lin CherryMay 17, 2026
14 hours ago
dennis
CommentaryAI agents
Freshworks CEO: why agile enterprises are winning the AI race — and what they did differently
By Dennis WoodsideMay 17, 2026
14 hours ago
A man with a headset sits at a desk in a call center.
EconomyAutomation
The AI boom hasn’t stopped U.S. companies from hiring cheap offshore labor, and overseas call center employment is still skyrocketing
By Sasha RogelbergMay 17, 2026
14 hours ago
Zillow CEO doubles down on remote-work model: ‘There is talent everywhere in this country’
Workplace Cultureremote work
Zillow CEO doubles down on remote-work model: ‘There is talent everywhere in this country’
By Marco Quiroz-GutierrezMay 17, 2026
14 hours ago
Stressed job seeker
SuccessGen Z
Gen Z is right about the job hunt—it really is worse than it was for millennials, with nearly 60% of fresh-faced grads frozen out of the workforce
By Emma BurleighMay 17, 2026
14 hours ago
A 45,000-person labor strike at Samsung’s memory chip plants could throw a wrench into the AI boom
EconomySamsung
A 45,000-person labor strike at Samsung’s memory chip plants could throw a wrench into the AI boom
By Catherina GioinoMay 17, 2026
17 hours ago

Most Popular

Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI
AI
Microsoft AI chief gives it 18 months—for all white-collar work to be automated by AI
By Jake AngeloMay 16, 2026
2 days ago
Former top Russian official admits the country is over Putin and can 'imagine a future without him' — even elites bail as Kremlin seizes their assets 
Politics
Former top Russian official admits the country is over Putin and can 'imagine a future without him' — even elites bail as Kremlin seizes their assets 
By Jason MaMay 16, 2026
1 day ago
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
Politics
The Bezos family just donated $100 million to help achieve one of Mayor Zohran Mamdani’s top campaign promises
By Jake AngeloMay 12, 2026
5 days ago
The top foreign holders of U.S. debt may soon dump Treasury bonds and bring their money back home, potentially spiking borrowing costs
Economy
The top foreign holders of U.S. debt may soon dump Treasury bonds and bring their money back home, potentially spiking borrowing costs
By Jason MaMay 17, 2026
9 hours ago
SpaceX heads into a record-shattering IPO with the 'deepest moat that exists today' as investors vow to 'never bet against Elon'
Innovation
SpaceX heads into a record-shattering IPO with the 'deepest moat that exists today' as investors vow to 'never bet against Elon'
By Jason MaMay 16, 2026
1 day ago
'No one was coming to save me': How Reese Witherspoon built a $900 million company from a problem Hollywood wouldn't fix
Success
'No one was coming to save me': How Reese Witherspoon built a $900 million company from a problem Hollywood wouldn't fix
By Sydney LakeMay 17, 2026
15 hours 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.