Last updated on Mar 4, 2024

What are the pros and cons of prepaid vs postpaid cellular data plans?

If you own a smartphone, you probably use cellular data to access the internet, stream videos, or use apps on the go. But how do you choose the best cellular data plan for your needs and budget? There are two main types of plans: prepaid and postpaid. In this article, we will explain what they are, how they differ, and what are the pros and cons of each option.

1 Prepaid plans

Prepaid plans are pay-as-you-go plans that let you buy a certain amount of data, minutes, and texts for a fixed period, usually a month. You can activate them online or at a store, and you can switch or cancel them anytime without a contract or penalty. Prepaid plans are ideal for people who want to control their spending, avoid credit checks, or use multiple SIM cards for different purposes.

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Suriya Devalan A R

Associate-I @ Capgemini Engineering| Linkedin Top Voice | CSWA MD | CSWA SUSTAINABILITY | CERTIFIED LSSBB | ISO 9001 | ISO 14001 | ISO 45001 Auditor
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In simple words, Prepaid is suitable for people who networks less frequently. Payment need to be done before using the service.

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2 Postpaid plans

Postpaid plans are monthly plans that let you use as much data, minutes, and texts as you want, and then pay a bill at the end of the cycle. You usually need to sign a contract for a year or two, and you may get a discount on a new phone or device. Postpaid plans are ideal for people who want unlimited or high-speed data, access to premium features, or family or group discounts.

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3 Pros of prepaid plans

One of the main advantages of prepaid plans is that they are flexible and affordable. You can choose the plan that suits your usage and budget, and you can change or stop it anytime without fees or hassles. You also don't need to worry about overage charges, hidden fees, or credit checks. You only pay for what you use, and you can easily track your balance and usage.

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Suriya Devalan A R

Associate-I @ Capgemini Engineering| Linkedin Top Voice | CSWA MD | CSWA SUSTAINABILITY | CERTIFIED LSSBB | ISO 9001 | ISO 14001 | ISO 45001 Auditor
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No fear of extra usage, lot of options with OTT and without OTT. You can have more data compared to postpaid in cheaper price.

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Saumya Chaturvedi

Senior Design Engineer at Skyy Skill Academy | IIT Kanpur Programs Co-ordinator
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In prepaid bills at least we can have control over spending with no surprise bills. But as for the downside it's always higher rates than a postpaid plan and that too with limited features of course.

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4 Cons of prepaid plans

One of the main drawbacks of prepaid plans is that they may offer less data, speed, or coverage than postpaid plans. You may also miss out on some perks, such as free streaming, roaming, or hotspot. You may also have to pay upfront for your phone or device, or use an unlocked one that is compatible with your carrier. You may also have to deal with lower customer service or support.

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Suriya Devalan A R

Associate-I @ Capgemini Engineering| Linkedin Top Voice | CSWA MD | CSWA SUSTAINABILITY | CERTIFIED LSSBB | ISO 9001 | ISO 14001 | ISO 45001 Auditor
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Need to top-up the plan regularly, you will receive lot of spam call asking you to recharge. Internet data plans are quite cheap compared to postpaid but they use to attach OTT platform fee and increase the pricing of the plan

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5 Pros of postpaid plans

One of the main benefits of postpaid plans is that they offer more data, speed, and coverage than prepaid plans. You can enjoy unlimited or high-speed data, as well as features like HD video, 5G network, or international roaming. You may also get a discount on a new phone or device, or upgrade it more frequently. You may also benefit from family or group plans that share data and save money.

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Suriya Devalan A R

Associate-I @ Capgemini Engineering| Linkedin Top Voice | CSWA MD | CSWA SUSTAINABILITY | CERTIFIED LSSBB | ISO 9001 | ISO 14001 | ISO 45001 Auditor
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We have a new option to link all family members in a single bill especially for post paid users where still pre paid users need to recharge separately.

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6 Cons of postpaid plans

One of the main disadvantages of postpaid plans is that they are more expensive and less flexible than prepaid plans. You have to sign a contract that locks you in for a certain period, and you may face early termination fees or penalties if you want to switch or cancel. You also have to pay a monthly bill that may include taxes, surcharges, or overage fees. You may also need to pass a credit check or provide a deposit to get a plan.

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Suriya Devalan A R

Associate-I @ Capgemini Engineering| Linkedin Top Voice | CSWA MD | CSWA SUSTAINABILITY | CERTIFIED LSSBB | ISO 9001 | ISO 14001 | ISO 45001 Auditor
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Need to pay for the data which you have not used for. Few internet providers give roll on options for next month but mostly they don’t.

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7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?

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Ravi Agrawal

Head of Programming | Programming Specialist, Programming Consultant, Localisation Expert, Dubbing Translation Creative Script Writer, Creative Writing, Voice Actor, Voice Casting specialist
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Telecom companies like Airtel also has a differentiator in terms of taking an esim connection for your cellular smart watch, they offer it for postpaid only and not for prepaid, however they've now started providing esim for mobile phones in both prepaid and postpaid plans, which were earlier also restricted to only postpaid plans, this is a deliberate differentiator between the postpaid and prepaid connections which should not be there as even Jio offers esim for smart watches in both postpaid as well as prepaid connections

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What are the pros and cons of prepaid vs postpaid cellular data plans?

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1 Prepaid plans

2 Postpaid plans

3 Pros of prepaid plans

4 Cons of prepaid plans

5 Pros of postpaid plans

6 Cons of postpaid plans

7 Here’s what else to consider

Cellular Communications

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