Reason why prepaid plans come with 28 days validity and not 30 days
Ever wondered why telecom operators offer the so-called “monthly” prepaid plans for 28 days and not 30 days? If you have ever calculated, subscribers who opt for the monthly plan recharge 13 times a year and not 12 times as they think.
Published:Fri, December 24, 2021 9:27am
By Sneha Saha
Ever wondered why telecom operators offer the so-called "monthly" prepaid plans for 28 days and not 30 days? If you have ever calculated, subscribers who opt for the monthly plan recharge 13 times a year and not 12 times as they think.
There's a big calculation behind it. By offering prepaid plans for 28 days instead of 30 days, these telecom giants make huge money. Let's explain how.
12 months x 28 days validity come to 336 days, which is 29 days less in 365 days/ a year. This clearly explains that you recharge 13 times in a year in case you opt for 28 days on a month-on-month basis. The calculation goes like 28 days x 13 months =364 days.
You will be surprised to know that in this 13th recharge, the telecom operators such as Reliance Jio, Airtel, and Vodafone-idea earn crores of money.
To be specific, in that 13th recharge, Airtel earns around Rs 5415 crore (average revenue per person - Rs 153 x 35.44 crore (userbase till September)). With a similar calculation, Reliance Jio and Vodafone-idea earn Rs 6168 crore and Rs 2934 crore, respectively, in the 13th month.
The same calculation applies to the so-called quarterly plans, which offer 84 days validity instead of 90 days. Subscribers opting for quarterly plans get only 336 days service on the fourth recharge with 29 days remaining for the year.
Reliance Jio, Airtel, and Vi offer a range of 28 days plans for prepaid customers. Jio provides plans worth Rs 299, Rs 239, Rs 209, Rs 419, and Rs 601. Airtel's 28 days plans list include - Rs 299, Rs 265, Rs 359, Rs 179, Rs 599, and Rs 449. Lastly, Vi 28 days plans include - Rs 299, Rs 501, Rs 179, Rs 269, Rs 475, Rs 359, and Rs 409.
With the recent price hike of prepaid plans, Reliance Jio, Airtel, and Vi customers are already worried. All three telecom operators have increased their tariff prices by 20 - 25 percent, which is around Rs 500 annually. The new prices have come into effect starting early this month.