Typically, with pay-as-you-go plans, consumers don’t have to commit to lengthy contracts and have the flexibility of using it one day or month, but not the next. Just recently, Virgin Mobile (owned by Sprint) rolled out a $40 unlimited monthly prepaid plan, which is half as much as what Verizon Wireless charges for prepaid mobile broadband, and about $20 less than what the carriers charge under a long-term contract.

SEE ALSO: Clearwire Confirms New ‘Pay As You Go’ Service Is Coming

Sievert said the Rover plans are targeting the 18 to 24-year-old market that is very technically savvy, and are used to buying prepaid wireless services today. “Rover represents the convergence between these two trends: pay as you go and mobile broadband,” Sievert said. There are two options to start: Consumers can buy the Puck for $150 that will allow eight WiFi enabled devices to connect to 4G at once. The Rover Stick is a USB modem and will allow one device, like a laptop to connect. It costs $100. Rover is priced at $5/day, $20/week, or $50/month for unlimited 4G internet usage, and can be paid for, “or topped off,” online or in stores using cash.

Clearwire was already offering prepaid offerings, but the vast majority—around 80 percent—were on contracts, Sievert said. Because of this, they felt they needed to offer a more differentiated prepaid service.

The conference call included comments made by Seth Cummings, Clearwire’s EVP, who previously worked at Amp’d Mobile and Boost Mobile, two prepaid and youth-oriented services. A separate website at http://www.evology.com/ is being used to promote the service. The homepage uses metallic colors and a galvanized steel look to create a youthful, hip image. A short video played during the conference call today, targeted young users with loud music and strange images, such as a woman giving birth to a doll with a smiley face head.

Clearwire said they believed there was a vacuum in the market for a service that teens and young adults would be proud to use and carry around. The service is targeting urban areas, where Clearwire’s service is strongest. It is in 49 markets across the country.