Clearwire tackles prepaid by the day, rather than MB

Clearwire (NASDAQ:CLWR) is moving into the prepaid mobile broadband market, but unlike other operators venturing toward pay-as-you go wireless data, Clearwire isn’t selling buckets of megabytes for set fees. Rather, the country’s first 4G carrier is sticking with its all-you-can-eat strategy, selling unlimited access in day, week and month increments.

The new prepaid service, called Rover, isn’t that much different from the Clear postpaid service. Unlimited monthly 4G access costs roughly the same, $50 for Rover versus $40 or more for Clear; neither service requires a contract, and Rover customers can even set their preferences to automatically bill for a new cycle at the expiration of the old one. The difference is customers purchase their service in advance with Rover, either through a Web portal or through $20 or $50 cards purchased at Best Buy, Clear retail outlets and authorized resellers. And unlike with the Clear service, customers can slice and dice their usage into smaller increments.

While the retail model for Rover isn’t radically different from that of Clear, Mike Sievert, chief commercial officer for Clearwire, said that the billing model is only one aspect of Rover. "It’s more than a product launch,” he said. “Rover is a new brand.” 

Clearwire wanted to create a mobile broadband service that targeted 18-to-24-year-olds, a segment that has grown up with the expectations of broadband Internet and mobility, but one that is also very accustomed to prepaid models, Sievert said. “They don’t want contracts, complexity or hassles,” he said, adding that prepaid is evolved far beyond the low-end and credit-challenged segments, becoming the means by which a younger generation wants to pay for wireless services.

Rather than try to repackage or reposition Clear for that younger segment, Clearwire felt it was best to target it specifically, allowing it to use prepaid billing, new stylish devices, and a different marketing and branding campaign. Clearwire will offer a 4G Wi-Fi router, the Rover Puck, and 4G-only USB dongle with the prepaid service. While essentially the same types of devices as those offered to Clear customers, the Puck’s form factor and packaging little resembles its Clear equivalent, the ClearSpot. Sievert said that one of the biggest appeals for the Rover service will be how simple the service will be. Rover won’t offer the option of a contract, as Clearwire does with Clear; there are no plans to offer dual-mode 3G-4G service because most of Rover’s customers will likely travel little and stick to the big cities, Sievert said.