We, consumers, always go for the best in any product we purchase. However, different consumers of various products see these products from different perspectives. While others may prefer a product based on its availability, some others may tag their preference based on the price. So before we conclude if a product is better than another, there is need to specify the area(s) that make the product superior to others.
In the world of telecommunication, there are two main billing methods, namely;
1. The Prepaid billing system commonly referred to as “pay-as-you-go”.
2. The Post-paid billing system also known as “mobile phone contract plan” or “contract-based phones”.
The prepaid mobile phone is a mobile phone for which credit is purchased in advance of service use. This credit remains in the phone and is only used whenever the service is consumed during phone calls, SMS or while accessing the internet via the phone. Without available credit in the phone, access to the requested service is denied by the mobile phone network. Users can top up their credit whenever they wish using a variety of payment mechanisms. The most popular means of recharging a depleted credit is by using a prepaid phone card.
On the other hand, the post-paid mobile phones which are also referred to as the Mobile phone contract or the Contract-based phones make use of a billing system where users enter into a long-term billing arrangement with a mobile network operator or Carriage Service Provider (CSP).
Having known what the prepaid and contract-based mobile phones are, let us see their merits and demerits.
Continue reading →