FreedomPop’s 1GB Free Data For iPhone Worries USA Carriers

Skype co-founder Niklas Zennstrom recently detailed an intriguing new project called FreedomPop that will offer "free wireless broadband" to Apple fans.

According to Forbes and Tech Crunch, the innovative device that makes it possible is an external case for the iPhone 4 and iPhone 4S that has an integrated WiMax radio which makes it capable to deliver 1GB of free data.

Users who go over the allotted 1GB of wireless data will have to pay a penny for every MB of data, which is $10 more for every additional GB.

Aside from the costs, the new device puts in the palm of the users a Wi-Fi hotspot and this is by itself a great convenience.

"Think of it as a mobile hotspot squeezed into a case - I'm told that it'll run for up to 30 hours, and can share its Internet connection with up to eight devices (including the iPhone that it's attached)," writes Chris Velazco from Tech Crunch.

In the long run, this device could scare carriers, particularly AT&T and Verizon, as their subscribers might be attracted by the opportunity to get free data over Wi-Fi.