Freetel

About Freetel

Freetel, operated by Plus One Marketing Ltd., was a Japanese technology company that emerged in the competitive mobile landscape with a dual focus on manufacturing affordable, SIM-free smartphones and providing mobile virtual network operator (MVNO) services. The company was established in 2012 by Kaoru Masuda, a former pioneer at Dell's smartphone division, and began selling its first smartphones the following year.

Freetel's business model centered on offering contract-free devices and mobile services, targeting a value-conscious consumer segment in Japan. The company marketed its phones with the tagline "Made by Japan," emphasizing Japanese quality standards and design, and gave its products distinctive Japanese names like 'Kiwami', 'Miyabi', and 'Musashi'. While designed in Japan, the handsets were manufactured in China under the supervision of Japanese engineers. Beyond hardware sales, the company's long-term strategy included generating revenue from software, apps, and content partnerships. In addition to its domestic market, Freetel expanded its device sales to North America in 2016, launching a portfolio of unlocked Android smartphones at various price points.

By 2015, Freetel had launched its MVNO service, "FREETEL SIM," utilizing NTT Docomo's network, and grew to become a notable player in Japan's MVNO market. However, the company faced significant challenges, including intense competition and high advertising costs, leading to consecutive financial losses. In April 2017, the company faced a setback when Japan's Consumer Affairs Agency issued an order against its claims of having the "industry's fastest" communication speeds. Facing financial distress, Freetel sold its MVNO business to the e-commerce and internet services giant Rakuten in November 2017 for 520 million yen. Shortly after, in December 2017, Plus One Marketing filed for bankruptcy protection with liabilities of approximately 2.6 billion yen. The Freetel brand and its mobile device manufacturing and sales business were subsequently transferred to MAYA SYSTEM in January 2018.