Clearwire Corp. launched Monday a new pay-as-you-go 4G mobile Internet service aimed at a young urban consumers in Chicago and 48 other markets.
Clearwire launched 4G service in Chicago late last year, offering broadband speeds that top those of 3G networks and allow for bandwidth-intensive activities such as streaming high-definition video. Sprint and Comcast also offer 4G products and services, which run on Clearwire’s network.
The new pay-as-you-go service is called Rover and will be branded separately from Clearwire’s other 4G offerings. Mike Sievert, Clearwire’s chief commercial officer, said in a conference call that Rover is geared toward city-dwelling youth between the ages of 18 and 24.
The pre-paid market for mobile phones is a rapidly growing segment in the U.S. with an almost 20 percent market share, Sievert said. It’s no longer a category limited to consumers with bad credit or limited financial means, Sievert said, noting that many people are seeking freedom from two-year contracts and greater flexibility in service.
Clearwire, which has roughly 2 million subscribers nationwide, is hoping to convince many pre-paid mobile phone users to turn to Rover for their mobile Internet needs.
Rover offers two products. The Rover Stick is a $99.99 device that plugs into the USB port of a computer, allowing the computer to access the 4G network. The Rover Puck is a mobile hotspot shaped like a flat disc. It costs $149.99 and allows up to eight WiFi-enabled devices, such as smartphones and game consoles, to connect to the network.
Both products are 4G only, meaning they will not work in areas where Clearwire does not have network coverage.
Pricing for the Rover service starts at $5 per day and goes up to $20 a week or $50 a month. Customers do not need a credit card to activate service and can refill their accounts with cash at selected retail locations.
The Rover Web site is clearly meant for a youth audience. A video clip about the service’s speeds is titled “Faster Than Your First Time.”
The title is misleading…. Clearwire launched their wimax network a year ago. What they just recently launched is a pre paid plan where as before everything was done through contracts. So really, Clearwire launched nothing.
Hope they plan to warn the pay-as-you-go crowd that their service is far from reliable.