Fed up with rip-off phone contracts? A new service provides a free(ish) alternative
What is it?
A “free” mobile service that has just launched in the UK, after proving a success in the US. Once you pay £6.99 to join, you can make calls, send texts and browse the web for free.
What’s the catch?
Calls, texts and web access are limited. The most basic plan gives you 200 minutes of calls, 200 texts and 200MB of mobile data per month, completely free.
Would that be enough for me?
Depends how much you use your phone. We’d expect the average phone-addicted teenager to bust that limit within 48 hours, but anyone who uses their device more sparingly should be fine. That’s true of texts and calls, anyway. Internet use is a different matter, because you need to visit around only 500 web pages to hit 200MB. Many people will do that in just a few days.
Would I be charged for going over?
Yes, 1.5p for every extra megabyte (so an extra 1GB would cost you £15). FreedomPop’s business model obviously needs many people to do this, but the company does at least alert you when you’re nearing your limit. It’s also easy to see how many texts and call time you have left.
Are there any other sneaky charges?
Not really, because FreedomPop is refreshingly upfront about how it makes money - which is to persuade you to pay for more call time, texts and mobile data. After the basic plan, the next cheapest gives you 1,000 minutes of calls, 1,000 texts and 1GB of data for £9 per month. That’s still pretty cheap. FreedomPop also sells extra features to enhance the service, such as a second number for your phone, and the ability to roll over unused data to the following month.
FreedomPop is an interesting example of the so-called ‘freemium’ model, in which companies tempt you with free access to a service, program or app, then aim to make money by enticing you to buy extras.
Are you sure there’s no catch?
Well, one thing does worry us. FreedomPop says that users will have the “unique opportunity” to add unlimited data by completing surveys and downloading coupons. We’re not sure what’s “unique” about this, and if the price of a ‘free’ service means being bombarded with surveys and offers, many people will say ‘no thanks’.
Would I need to buy a new phone?
No - that’s part of the appeal. Sign up to FreedomPop (www.freedompop.com) and you’ll receive a SIM card to slip into your existing phone (both Android and iOS). You then need to download the respective app (for calls and texts), and you’re ready to go. It works on tablets too.
Is it available throughout the UK?
Yes. Like Tesco and TalkTalk, FreedomPop is a MVNO (mobile virtual network operator), which means it piggybacks on another company’s network to provide mobile internet access. In May it signed a deal to use Three’s network, which covers 97 per cent of the UK’s population (to check whether you’re covered enter your postcode at www.freedompop.com/coverage).
So, should I cancel my existing phone contract?
Not yet. It’s early days for FreedomPop in the UK, and it’s still in beta, so we would advise waiting to see whether any problems arise. Also, you can’t transfer your existing phone number, which is a pain. The US version of FreedomPop does allow this, so hopefully the option will be added to its UK equivalent soon.
We have high hopes for FreedomPop, though. It has a daft name and a clunky website, but for ‘light’ users of phones it could become an attractive alternative to expensive monthly contracts.