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WHT

join:2010-03-26
Rosston, TX
kudos:5

Advertising supported free service fails

quote:
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.
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.

"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?