FreedomPop said undisclosed Intel investment to help expand smartphone lineup
Mobile virtual network operator FreedomPop said it scored an undisclosed amount of funding from Intel Capital that it plans to use to expand its smartphone portfolio, including the launch next year of a Wi-Fi first model using Intel’s Sofia platform.
FreedomPop claims the Wi-Fi first smartphone will be “very competitively priced” and include support for seamless Wi-Fi to cellular handoffs, the ability to vary network speeds at the device level and provide for “high quality” voice over Internet Protocol calls. FreedomPop currently offers a handful of legacy smartphones, including the Samsung Victory, Galaxy S4, SIII and SII, and a couple of mobile hot spot devices.
The MVNO in July announced $10 million in funding from telecom operator Axiata Group, which serves more than 230 million customers across Malaysia, Indonesia, India, Bangladesh, Singapore, Cambodia and Sri Lanka. FreedomPop said it plans to use its technology, business model and recent funding along with Axiata’s network, operational capabilities and local knowledge to offer a “free mobile service and simple plans to millions of mobile users.”
At that time, FreedomPop also noted that the move expands its operational model from a simple wholesale relationship like it currently has in the U.S. with Sprint, to a “more strategic commercial partnership.” The company added it was in discussions with “multiple major global carriers for strategic partnerships” across other markets.
FreedomPop announced in June it scored $30 million in series B funding from new investor Partech Ventures and existing investors DCM Capital and Mangrove Capital. FreedomPop CEO Stephen Stokols said the decision to move forward with new investments instead of a possible sale were due to its expected growth opportunities, though it has not ruled out a potential sale in the future.
“We received several M&A offers, but we ultimately decided it was premature to sell on the cusp of exponential traction,” said Stokols. “Following on accelerated growth and our pending global expansion, we are confident we will create massive value within the next 12 to 24 months at which point we could revisit exit options.”
The MVNO, which said it expects to hit nearly 1 million customers by the end of this year, launched in late 2012, offering customers free mobile data services running across Clearwire’s WiMAX network. The company eventually added 3G and LTE support running across Sprint’s network, with a mix of free and inexpensive rate plans.
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