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.
ADVANTAGES OF PREPAID MOBILE PHONES
1. No service fee or monthly rental fee is required.
2. No activation fee
3. No termination fee if you decide not to use your phone card again. This gives freedom to change your network provider whenever you want.
4. You are always in control of call cost
5. No compulsion to top up your credit rather some operators come up with reward schemes to encourage frequent top ups.
6. No age limits
7. No hidden cost, you just pay as you go.
DISADVANTAGES OF PREPAID MOBILE PHONES
1. Often, prepaid customers pay more for their calls and SMS messages.
2. Prepaid phones allow the user to be anonymous and therefore facilitate criminal or terrorist activities.
3. The possibility of running out of cash at a crucial time that you need to make call.
4. Some carriers put a time limit on your credit. You will have to use it within a stipulated time frame or else it will be classified as invalid.
ADVANTAGES OF POST-PAID MOBILE PHONES
1. Lower cost as compared to the prepaid
2. No increments in monthly rate during the contract period, as long as you remain on the same rate plan.
3. You might receive a billing credit a few months into the contract.
4. Fixed rate for minutes unless you go over your minimum.
DISADVANTAGES OF POST-PAID MOBILE PHONES
1. Phone purchase price is likely higher.
2. There might be set up charges
3. You are restricted to your monthly plan for the duration of the contract. During this period, rate increases are permitted but not decreases.
4. Failure to comply with the terms of the contract attracts a penalty, often with the price of the remaining months on the contract.
5. Contracts often require a minimum monthly fee, which might be more minutes or features than you might use.
Whatever this analysis reflects, people will always have their reasons for preferring one product to the other. It is note-worthy that the “purpose” is the driving force behind the choice we make. Just as a farmer would prefer a truck to a saloon car, for the easy conveyance of his farm products, a banker on the other hand would prefer the saloon car to the truck because it projects his corporate image. So whatever choice we make, whether to go by the prepaid or postpaid plan, should be such that tallies with the purpose we intend to use it for. The one that will provide maximum satisfaction with minimum tolerable disadvantages. The choice is up to you.
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