The mobile industry has been exploding ever since the release of smartphone devices. However, not everyone can afford to have a device with a contract. Since the latest trend in mobile broadband is the wide variety of options, the market is beginning to offer consumers a convenient way to try the service without a long-term contract, by using a prepaid phone.

U.S. Cellular (News - Alert) and Alltel Wireless have decided to team up to offer a brand new prepaid wireless service that will be sold in Wal-Mart stores throughout the United States. The companies have formed, U Prepaid, which is a wireless service that allows customers the ability to pick flexible payment options without needed to sign an agreement with a mobile carrier.

“Teaming with Alltel (News - Alert) to gain distribution in Wal-Mart gives us another opportunity to be where our customers want to shop and offer more customers a prepaid service that helps them control their monthly budgets,” said Carter S. Elenz, executive vice president of sales and customer service for U.S. Cellular.

Elenz said that users should expect the best from U.S. Cellular, regardless if it’s a prepaid plan. “U Prepaid customers with U.S. Cellular will be backed by our high speed network, which has the highest call quality and network satisfaction of any national carrier,” said Elenz.

This new service will be offered in 18 states, with 500 Wal-Mart stores selling the phones and prepaid plans. Depending on where the customer lives, the phone will run on either the U.S. Cellular or Alltel’s network.

Lesa Handly, chief marketing officer for Alltel Wireless, said the company is happy to be moving ahead with these new flexible options for customers. “Alltel is proud to bring the strength and equity of our U Prepaid brand to U.S. Cellular to create this unique alliance,” said Handly. “Together, we can leverage our position as the “local” wireless carrier offering a hometown alternative in the communities we serve.”

Customers will have the option of choosing some smartphones such as the Android-powered Samsung (News - Alert) Repp, the LG Saber, and even the Samsung Chrono. The plans will also come in a variety of options depending on usage.