The prepaid mobile phone market is ten times larger than the postpaid mobile phone market in India. There may be several reasons. The first seven of them are:

1. Instant activation

You don’t have to wait three or four days to set up your connection. Walk into any retail store with your proof of identity (passport or ID or some kind) and get your connection instantly. Sometimes you can also get your SIM card and connection for free. (I got a connection with 30 rupees of free talk time).

2. No monthly commitments

There are no monthly plan charges to pay. If you don’t want to charge your mobile for three or six months, that’s fine. However, that is not the case with postpaid plans. You have monthly plan charges to pay. You have to make this payment even if you don’t make or receive a call.

3. No late payment penalties

When you miss your bill payment date, it can usually mean fines and penalties. There is no such penalty in case of prepaid mobile. You put money in your account whenever you want. And, you are not liable to the company if you choose not to pay anything.

4. Better control over your expenses

Some people just can’t stop calling. If you are one of them, you know how frustrating it is to look at huge bills. In the case of a prepaid mobile, you can top up your mobile with low-denomination top-ups. Lower balance amounts on your account will prevent you from making unnecessary calls. Bonus: You will learn the benefits of discipline 🙂

5. Changing number/carrier is easy

In case of prepaid users, you can keep your number active for incoming calls only. This is especially beneficial if you are switching to a new number. You may need to change your number for various reasons. In the case of a postpaid connection, keeping the connection active costs you money.

6. Carry more than one SIM card at no additional cost

I know several people who have more than half a dozen SIM cards. If they were all postpaid connections, they would go bankrupt years ago. However, they can choose to enjoy the benefits of specific service providers at any time they choose. You can find special offers that include unlimited free calls to the same network, regardless of the mobile service provider you use. Aircel, BSNL, Reliance, etc all have these types of deals. With no monthly plans to worry about, you can enjoy the benefits of any network, anytime you choose.

7. Special packs to choose from

You can make use of the special packs that are offered. Prepaid customers can enjoy special packages for GPRS/data usage, SMS/text messages, unlimited free calls for specified periods and many other offers. For postpaid customers, the plans remain more or less the same.