Saturday, August 28, 2010

“Clearwire To Serve Prepaid Segment”

“Clearwire To Serve Prepaid Segment”

Clearwire To Serve Prepaid Segment

Posted: 28 Aug 2010 10:56 AM PDT

(RTTNews) - Wireless broadband services provider Clearwire Corp. (CLWR: News ) is all set to serve a new customer segment with its launch of "pay as you go" service on Monday.

Clearwire, which is majority owned by Sprint Nextel Corp. (S), currently offers 4G services on a month to month basis and on contract basis. In the contract plan, subscribers are locked into service contract by the service providers.

Unlike the contract plan, the pay as you go plans or pre-paid plans, require no contracts, no credit card requirements and no monthly fees. This plan is popular among adults who use their cell phones minimally and for teenagers who are not financially savvy. One potential drawback with the pay as you go plans is that the minutes might be more expensive than in the contract plans.

Though the 'pay as you go' cell phone plan has been the norm in the UK, it started gaining patronage in the U.S. only since the start of recession.

Virgin Mobile, Verizon Wireless, AT&T and T-Mobile are some of the cell phone service providers in the U.S. offering the 'pay as you go' plan.

Earlier in the week, Virgin Mobile introduced a new, $40 monthly plan for its prepaid service that provides unlimited 3G data usage, replacing its previous plans: $20 per month for 300MB; $40 per month for 1GB; or $60 per month for 5GB.

Clearwire becomes the latest wireless broadband services provider to foray into the "pay as you go" segment at a time when competition is gaining heat. The company has more than one million wholesale subscribers and just under one million retail subscribers on its 4G network.

With the roll out of the "pay as you go" plan by Clearwire , consumers planning to switch to no contract cell phone plans will have one more option to choose from.

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by RTT Staff Writer

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