Advertising supported free service fails
quote:This is the same model the billion dollar city-wide municipal wireless deployments pursued. They miserably failed. Sticking a new name (different color of lipstick) on a failed business mode does not mean pig will look pretty.
He noted the revenue model will be "similar to those proved on Web, whereby the heavy users subsidize the less active," and confirmed FreedomPop is actually pursuing a "freemium" model, where basic services are offered for free but premium services cost money.
"Similar to those proved on Web, whereby the heavy users subsidize the less active" works when both tiers are a "pay for", it has not been proven to work when there is a free alternative.
Given the choice between *FREE* moderate speed, pop-up advertising internet and PAY-FOR internet...what will 90% of the consumers choose?