Los Angeles Times

1 million customers pay nothing for FreedomPop cellphone service, and it hopes for a profit soon

There are times when FreedomPop founder Stephen Stokols would get better coverage or service using a competing cellular carrier. Like when he got booted from his own provider after getting tripped up by confusing settings.

But Stokols and his 2 million customers have been willing to suffer occasional headaches in exchange for an unbeatable deal. Half the people using FreedomPop pay nothing for cellphone service, including mobile internet access.

There are limits on monthly usage (500 megabytes in the U.S.) and caps on calling and texting (three hours and 500 messages). Finding a shop, reaching a customer service agent or buying a phone from FreedomPop can be complicated. And users need a credit card.

Stokols contends, though, that many should find the trade-offs attractive because he pegs median mobile data usage in the U.S. at about 700 megabytes per month.

Customers can pay a few dollars to pick up extra data, up to about $20 a month for unlimited data, calling and texting. Not a bad deal compared with $40 most elsewhere.

FreedomPop can afford to cut prices because its departures from industry conventions, including accepting lower profits.

The Los

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