Prepaid vs Postpaid SIM: Key Differences, Benefits, Current Trends & Best Value Telecom Plans in India

Prepaid SIM or Postpaid SIM, which one to buy? This is the most difficult decision that every mobile user has to make at some point in time in life. Every network operator offers both postpaid plan and a prepaid plan. The best way to decide which one you should opt for is by comparing postpaid and prepaid plans for the respective network operator. Also, the user’s budget and needs are to be considered. Both have their benefits and drawbacks.

What is a Prepaid Plan?

A Prepaid plan is a mobile service where users pay in advance for the mobile services they will be using, like calling, texting, and internet.

What is a Postpaid Plan?

A Postpaid plan allows users to use the mobile services first, and then you will have to pay the bill based on their billing cycle.

Key Differences Between Prepaid and Postpaid SIMs

Understanding the key differences can help you choose the plan that is best for your pocket, habits, and lifestyle.

Benefits and Drawbacks

Here are the benefits and drawbacks of the Prepaid plan and Postpaid plan:

Benefits of Prepaid Plan

• There are no long-term contracts or commitments, and you can easily switch between plans as needed.
• Prepaid plans are budget-friendly, and you only pay for what you use.
• There are flexible plan options available (daily, weekly, or monthly).
• There is no need to conduct a credit check, and therefore, prepaid plans are available to all, regardless of their credit history.
• Special promotions and discounts are frequently offered by the telecom operators.
• International roaming services are offered by many prepaid plans that help you stay connected while travelling abroad.

Drawbacks of Prepaid Plan

• The Prepaid plans have slower browsing speeds and limited data available.
• Requires frequent recharges to keep the service running.
• Prepaid plans have limited perks than postpaid plans.
• The per-minute charges are higher compared to postpaid plans.

Benefits of Postpaid Plan

• The fixed amount of the bill is generated every month.
• The plan gets renewed automatically every month, so you don’t have to worry about frequent recharges.
• The postpaid plans offer better value for money by providing additional perks such as family plans and streaming subscriptions.
• You get better service, support, and faster issue resolution.
• Most of the plans provide the data rollover facility to the next billing cycle.

Drawbacks of the Postpaid Plan

• You have to wait till the billing cycle is complete to change the plan.
• Postpaid users may face bill shocks due to excessive internet usage, roaming charges, and accidental use of extra services.
• To activate the postpaid plan, a credit check is done by the telecom operators.
• Switching between providers before the billing cycle can result in termination fees.

Current Trends in India

The current market trend indicates the most popular preference to be the prepaid plans due to their affordability and more unlimited service options.

1. Market Share

• Prepaid plans still dominate the Indian telecom market, with approximately 91% of users.
• The Postpaid plans only occupy around 9% of share but are drastically increasing.
• According to Experts, the postpaid plans are expected to reach 12% shortly due to attractive 5G and combined offers available.

2. Average Revenue Per User (ARPU)

• The prepaid users are spending almost as much as the postpaid users.
• Postpaid ARPU: ₹192/month
• Prepaid ARPU: ₹181/month

3. Why prepaid dominates

• Flexibility to recharge as per the budget and requirements.
• Budget-friendly pricing without the need for long-term contracts.
• Perfectly suited for India’s price-aware users.
• Prepaid plans are also now offering services almost similar to postpaid, such as OTT subscriptions and unlimited data.

4. Why is postpaid gaining popularity

• Unlimited 5G data plans.
• Packaged with OTT subscriptions.
• Cost-effective shared plans for family members are available.
• Loyalty rewards are available, along with added customer support.

Best Value Telecom Plans in India

Here is a well-structured guide to India’s best value prepaid and postpaid telecom plans –

Best Prepaid Plans in India

Jio – Jio is offering various prepaid plans with different benefits, data, and validity.

• Jio: Annual 5G Data Offer: An annual 5G data plan for ₹601 that offers high-speed 5G data for 1 year.
• Jio: Gaming-Centric Recharge Plans: This plan is available at ₹495 & ₹545 and offers cloud gaming and BGMI rewards. This plan focuses on gamers seeking high-speed speed unlimited 5G data.

Airtel – Airtel provides plans with packaged subscriptions and data rollover options. The plans start from ₹279.

Vi – Vi offers “Truly Unlimited” plans that provide options for unlimited data and calling in selected areas of Maharashtra and Goa. The plan starts from ₹269.

Best Postpaid Plans in India

Jio – Jio offers Tiered Postpaid plans that range from ₹599–₹999. These plans offer unlimited calling, OTT bundles, and 75 – 150 GB of data.

Airtel – Airtel provides the following best postpaid plans and many more-

• Airtel: Value Monthly Postpaid: This plan starts from ₹449 and includes unlimited calling, 50 GB 5G data with rollover, 100 SMS/day, and access to Xstream Play app.
• Airtel: Infinity & Max Family Plans:
  • ₹399 plan: unlimited calls, 40 GB data, data rollover up to 200 GB.
  • ₹499 plan: unlimited calls, 75 GB data, with OTT Subscriptions(Amazon Prime + Disney+ Hotstar).

Vi –

• ₹499 plan: Offers unlimited voice, 75 GB data, OTT Subscriptions(Amazon Prime, Disney+ Hotstar, and VI Movies & TV) for a year.
• ₹699–₹1,099: unlimited data along with the OTT benefits.

Both Prepaid and Postpaid SIMs offer different benefits. If you want better flexibility and control, opt for prepaid, or if you want bundled perks and ease of use, opt for postpaid.