Consider the Möbius transformations
Their group lies in , which is a discrete subgroup of the Möbius group: integer entries cannot approach the identity matrix except by eventually equalling it, and passing to the quotient by preserves this property.
For freeness let and . For every nonzero integer , and
A reduced word involving both generators can be conjugated to a cyclically reduced word beginning with and ending with a nonzero power of , after interchanging the generators if necessary. Repeated use of these inclusions shows that this word sends into the proper subset of , so it cannot be the identity. Nonzero pure powers of either generator are also nonidentity. This is the ping-pong lemma in this particular action, and proves that is a free group of rank two as well as a discrete subgroup of .

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