Is postpaid expensive for low-end users

Posted on | January 22, 2006 |

ET does some calculations, comparing lifetime prepaid plans with postpaid plans for users with low daily usage.

The conclusion: if you don’t make too many calls, it’s worth considering a switch to the lifetime pre-paid scheme, despite the higher call rates.

Say, you make calls for about 10 minutes a day. At Rs 1.99/minute for local calls under the lifetime scheme, you would pay Rs 7,264/year on call charges.

Add, in the first year, Rs 999, plus activation charge of Rs 250 and Rs 99 as CLIP (caller identification) charge, and it comes to Rs 8,612.

But if you are on a post-paid plan where the monthly fixed charges, including CLIP and rental, come to Rs 450, your annual outgo on fixed charges alone will be Rs 5,400.

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