SAN FRANCISCO — It would not be an insult to say Republic Wireless and FreedomPop are obscure little companies.
But they dream big. The two companies are at the forefront of a tantalizing wireless communications concept that has proved hard to produce on a big scale: Reduce cellphone costs by relying on strategically placed Wi-Fi routers. And when there are no routers available, fall back to the traditional cellular network.
They have been at this for nearly five years with mixed success. The companies say they are already profitable and gradually adding subscribers. But they are tiny — both say their customers are in the hundreds of thousands. Verizon Wireless, by comparison, has more than 100 million.
Still, the upstarts have been trailblazers, proof that alternative wireless networks are feasible and maybe even profitable. Now some giant companies look to be following their lead.
Last month, Cablevision announced a phone service that would be powered entirely by Wi-Fi, for $30 a month, while a traditional wireless contract costs around $100 a month. Google has also been working on a cellphone service that relies heavily on Wi-Fi, according to people briefed on the company’s plans.
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David Morken, chief executive of Republic Wireless, argues that there are plenty of budget-conscious consumers, from students to professionals, who just want cheaper cellphone bills and do not mind making the leap to a phone service powered primarily by Wi-Fi.
But the majority of Republic Wireless customers opted for a $10 plan that includes a combination of Wi-Fi and cellular services, he said. In other words, the traditional cellular infrastructure will not go away. But he has faith that one day it will be the second option, not the first.
“There are many, many implications to cellular being relegated to a backup position,” he said.
Conor Dougherty contributed reporting.
