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@aggi
By all accounts the free edition will be the full, equivalent version of whatever licence you had on 7/8 (i.e. home, professional, etc).
Home OS upgrades (businesses won't be getting free upgrades) only make a tiny proportion of MS's revenue so if they want everyone to move to Windows 10 then this is the way to do it.
When Windows 8 came out they were selling full versions for £20 or so for the first few months.