FreedomPop $5 Unlimited Wi-Fi Service Threatens to Shake Up Mobile Carriers

FreedomPop has launched a new unlimited Wi-Fi plan for smartphone and tablet users that has a monthly fee of only $5.

With the plan, users on their smartphones and tablets will be able to enjoy unlimited calls, text messages and data, without fear of using up what is allotted for their plan.

The service can be accessed through nearly 10 million Wi-Fi hotspots located around the United States, many of which are not available to the general public.

FreedomPop, which is a mobile virtual network operator of Sprint, has been trying to make a name for itself by offering low-cost and free mobile services. The company does not operate its own network, but rather leases its data and voice spectrum from Sprint. As such, FreedomPop has previously relied on Sprint's cellular network to provide its customers with access to the Internet.

The new $5 per month plan, however, is different from FreedomPop's traditional offerings, as the company will use Wi-Fi hotspots instead of a cellular network to provide the service.

FreedomPop is looking to challenge wireless communications providers by offering an alternative to the expensive data plans that could quickly be used up even before the end of the month. As such, the new service is aimed at users that wish to preserve their cellular data and minutes, those with tablets that are Wi-Fi only, and those with devices that have had their cellular connections deactivated but can still go online through Wi-Fi.

FreedomPop COO Steven Sesar explained that while carriers such as AT&T and Verizon are spending billions of dollars as investments in LTE networks, companies such as Comcast and Google are instead making investments into Wi-Fi networks.

The new service is currently only available through the company's app for Android devices, with a version for iOS devices currently being developed and should be launched within a couple of weeks. There are no plans to create a version for Windows Phone devices.

FreedomPop is looking to have 25 million available Wi-Fi hotspots by the year's second quarter, with the goal of having over 90 percent coverage within the top 200 major metropolitan areas in the country by year's end.

FreedomPop did not disclose the provider of the Wi-Fi network, but did reveal that the hotspots may be accessed through large retail spots. The company will also be working together with Wi-Fi aggregators, which collate the networks operated by different providers, as well as with direct networks to develop its hotspot network.

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