Monday 20 June 2016 9:19 pm

Telecom challenger eyes profit in late 2016 as second US tie-up looms

US wireless service provider FreedomPop has said it will be profitable before the end of the year.

FreedomPop, which launched in the UK last September, is also targetting a partnership with a second US carrier by the year’s end.

The firm is already partnered with US network giant Sprint, selling Sprint-compatible phones and allowing Sprint’s wholesale data business to benefit from FreedomPop’s growth.

Read more: From telecoms provider to tech innovator – Can the old guard make the leap?

The chief executive of FreedomPop Stephen Stokols said in an interview with Reuters the company has a conversion rate from free to paid services of 48 per cent.

He claimed the metric beat out the likes of messaging service WhatsApp or music site Spotify. Earlier this year Spotify’s conversion rate was thought to be around 28 per cent.

He did not however give specific details on UK subscriber take-up, saying it was “at six figures”.

FreedomPop will launch in Spain next month after raising $109m (£74.40m) in funding from investors including Partech Ventures and Intel Capital over the last two years.

Read more: The TalkTalk chief executive has donated her bonus to charity

The app has been downloaded 100,000 to 500,000 times from the Google store.