Clearwire targets Internet addicts of 'Generation Y' with Rover |
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With the failure of Kin, Microsoft learned just how tough it can be target the so-called Generation Y bracket of consumers. But now Kirkland-based Clearwire is venturing into that minefield with a new high-speed wireless service called Rover.
Rover is a pay-as-you-go mobile broadband service, which allows consumers in 49 markets to sign up for a day ($5), a week ($20) or a month ($50) without locking into a long-term contract. The marketing materials are laced with all sorts of sexual innuendos. Statements like: "Faster than your first time" and "Friends with benefits."
So, there's no doubting who Clearwire is targeting with Rover. But you'd have to ask why the company is targeting the new offering to "Internet addicted, city-dwelling youth" between the ages of 18 to 24. After all, someone who is twice that age also might buy Rover. Why not aim the marketing at them as well?
In today's press call, Clearwire Chief Commercial Officer Mike Sievert addressed that strategy when he said that Clearwire is creating a diversity of brands.
The Rover Puck Wi-Fi hotspot device
"A fundamental truth about brands is that each one will appeal more to some people and less to others," said Sievert. "That's one of reason why we really like our network of networks approach. It allows us to address the full opportunity out there across every segment and preference. Rover is a natural extension of this model."
Sievert noted that pay-as-you-go cell phone plans are a "major force in the wireless industry," representing about 20 percent of the market. And he added that the segment is no longer limited to those with bad credit.
"Research shows that, broadly, attitudes toward pay-as-you-go products are changing," said Sievert, adding that younger consumers are attracted to the simplicity of not having a monthly wireless bill.
"One of our concepts here was to just focus on making this really, really simple. And it is really about this audience," he said. "They don't want complexity. They don't want commitments. They don't want to be tied down."
The company may at some point roll out the pay-as-you-go offering to other demographic groups, with Sievert saying that it could very well appeal to consumers in other walks of life. But, for now, he said they wanted to focus on a youth market that has grown up taking the Internet and wireless for granted.
"Having a target audience gives it a life. It gives it a spark, and it helps us focus our efforts," he said.
As part of the new Rover offering, Clearwire is rolling out a new device called the Rover Puck which allows users to set up a mobile Wi-Fi hotspot for as many as eight devices. The device, which produces speeds of three to six Mbps, sells for $150. In addition, the company is introducing the Rover Stick -- a 4G USB modem -- which works with MacBook using Mac OS X as well as PCs running newer versions of Windows. That device sells for $100.
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