The service will use application to send and receive text messages and make calls.
US based mobile phone service and wireless internet provider FreedomPop is planning to enter into the UK with SIM only service that will provide free 200MB of data, 200 texts and 200 minutes of voice calls every month.
However, users will be charged for additional services, which includes additional data beyond the free limit, anonymous browsing, and to get the ability to forward unused data over to the next month.
By opting for the paid service, users will also be able to add phone numbers from more than 60 countries to allow users outside the UK to make calls at local rates.
FreedomPop is backed by Skype founder Niklas Zennstom and it offers similar services in the US, where it has around a million users, out of which 49% are paying for additional data.
BBC cited FreedomPop co-founder Steven Sesar as saying: "We see ourselves as the no-frills mobile carrier. We want users to feel liberated, getting the basic services for free.
"We’ll start with around a dozen add-on services that customers can choose to pay for and extend that to 20 or so within a year."