Mobile phone service provider FreedomPop is trying to make further inroads in the global phone market by establishing a presence in Spain. The launching of FreedomPop in Spain would be the third country the mobile virtual network operator has entered. Started in 2011, FreedomPop has established itself in the US market, and has recently expanded in the UK market.
So how does FreedomPop plan to establish itself in Spain? The answer to that is that FreedomPop will subsidize the costs of using WhatsApp for Spanish users. WhatsApp is the most widely used texting service in Spain. It accounts for about 70% of all text message users in the country. Creating zero rated or free usage of WhatsApp will let FreedomPop establish a quick and strong presence in the Spanish mobile phone market.
The number of users in Spain that Use WhatsApp is probably millions, maybe even reaching into ten million plus. The goal of FreedomPop offering zero rated WhatsApp is pretty simple. Get the company name and brand out and try to attract customers to try out FreedomPop’s other services.
How will FreedomPop turn a profit you may wonder? The mobile virtual network operator hopes that by offering free WhatsApp service in Spain, it will hook a significant segment of the Spanish WhatsApp users and bring them on board to using their service.
FreedomPop offers limited free service, such as 200 call time minutes, 200 text messages and 200 MB of data on a smartphone. The goal of the free service in WhatsApp is to ultimately obtain some additional customers and hope that they sign up to FreedomPop. The other hope and what the company is hedging on is that some of the users obtained through WhatsApp will sign up for additional services that will generate a revenue for the company.
Spain is seen as a trial for FreedomPop to experiment with using WhatsApp as a means of customer acquisition. Success in Spain through WhatsApp could lead FreedomPop to using a similar model in other countries where WhatsApp is highly popular. For more on WhatsApp and the entry of FreedomPop In Spain check out this article on VentureBeat, where it was originally published.
Learn more at this FreedomPop review