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Can FreedomPop destroy pricing for AT&T And Verizon?

“Clogged networks have made wireless data a precious commodity, but one innovator group has a plan to not just cut costs for consumers, but bring them down all the way to zero,” Aabha Rathee reports for Wall St. Cheat Sheet. “FreedomPop is on its way to launching a free mobile Internet service for U.S. users this summer, a move that is likely to demand a change of strategy from established wireless providers.”

“FreedomPop will use Clearwire’s WiMAX network to give users one gigabyte of free mobile Internet access per month — more than most users currently consume,” Rathee reports. “The company plans to offer an Apple iPhone case that will provide access for mobile use and act as a hotspot for eight other devices, a USB attachment for use on laptops, and a Wi-Fi hotspot device that will be able to connect up to 20 devices to the Internet.”

“While FreedomPop users will also be charged for going over [their 1 Gb limit], the fee will be “cheap,” company marketing vice president, Tony Miller, told Technology Review. The fee may be lower than a penny per extra megabyte. Users won’t even have to pay for its devices, though they will be asked for a refundable deposit to prevent reselling and abuse, Miller added. Analyst Neil Shah told Technology Review that the company may soon have to partner with other mobile broadband partners because Clearwire’s range was still limited,” ,” Rathee reports. “Miller did not disclose who was behind the company or their revenue model, but said Skype co-founder Niklas Zennstrom was a backer.”

Read more in the full article here.

[Thanks to MacDailyNews Reader “Arline M.” for the heads up.]

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