FreedomPop targets Lifeline providers with digital platform

FreedomPop is hoping to cash in on the Federal Communications Commission’s overhaul of the Lifeline program, which subsidizes telecommunications services for low-income consumers.

FCC Chairman Ajit Pai directed the agency to eliminate the federal approval process for Lifeline service providers, effectively returning those processes to the state level. Critics say the move will require would-be service providers to undergo a lengthy and perhaps prohibitively burdensome course to extend offerings to Lifeline participants. But FreedomPop, an MVNO that provides wireless services in North America and Europe, is licensing its platform as a way for companies to bring offerings to market through Lifeline more simply and affordably. The company announced a deal with one Lifeline service provider, PWG Solutions, and said it will launch with a few more companies in the coming months.

“It’s pretty much impossible to get certified across 30 states, so you’ve got these (potential service providers) who are just stagnant,” FreedomPop CEO Stephen Stokols said. “Rather than just trying to come in and outdo them, we’re literally just going to empower them, basically extend our technology to these guys so they can modernize.” FreedomPop uses a freemium model to entice users, then upsells them into bigger packages or other value-added services such as additional local numbers for users in foreign lands or a “safety mode” that prevents overage charges. It sells handsets as well as SIM cards enabling customers to activate their own phones.