Save RM100s a year by choosing among the cheapest prepaid plans today! Read this short guide to find out the ultimate way to Save Money on your mobile prepaid plan from every provider
Prepaid vs. Postpaid
So..rocking a new smartphone, are we? Staying frugal and avoiding sky-high phone bills have never been easier! The tricky part comes when you are deciding whether to rely on a prepaid plan or a postpaid plan to power up your mobile. On one side, a postpaid plan allows you to perform endless calls and SMSes without ever running out of credit. On the other corner, prepaid plans offer more versatility with their Pay-As-You-Use billing concept which relieves prepaid users from being tied to any contract or monthly bill.
So, which type of plan should you choose? It all depends on your usage! We did a bit of research and this is what we noticed :
When to use a Postpaid Plan
If you use your mobile phone frequently, such as for business purposes, the best way for you to Save Money is by using a postpaid plan that fits your needs (check out our Cheapest Postpaid Plans article here!). Yes, the monthly commitment could be quite high (around RM50 to RM400) but you will enjoy a much, much lower call and SMS rates (which means you get to make more calls and SMSes!) and Save Money overall.
When to use a Prepaid Plan
On the other hand, if you are spending between RM20 to RM50 a month for your monthly calls and SMSes, then going prepaid is definitely the best way to Save money!
Pay-as-you-use method vs Postpaid Plans
Pay-as-you-use is the billing method that most prepaid plans have where you basically pay for what you use. For ‘light’ users, going prepaid will make them Save Money compared to the lowest postpaid plans.
Here’s an example:
Lily is a ‘light’ user currently subscribing to the Maxis Value First plan (lowest available monthly commitment fee offered by Maxis) with a monthly commitment fee of RM30.
Rates for Maxis Value First:
Calls - (RM0.18/min to Maxis, RM0.20/min to all network)
SMS - (RM0.10/min to Maxis, RM0.10/min to all network)
Lily’s average monthly usage :
Calls – 50 minutes
SMS – 50 SMSes
Billed Amount: RM30.00! (minimum commitment)
Actual Usage: RM14.50 (assuming usage is half to Maxis, half to others)
So at Lily’s average usage amounts, she does not hit the minimum commitment fee level and will end up having to pay RM30 each month!
In comparison, if she was using the New Hotlink Plan, her usage will only cost her around RM14 – RM16!
Jargons Made Easy
Just to make it easier for you, here are some definitions of mobile jargons that might pop up in the article from time to time:
Monthly Commitment Fee
The minimum fee that you have to pay every month regardless of your monthly usage.Eg: Amir subscribed to Telco A 50 that has a minimum commitment fee of RM50. So Amir has to pay RM50 every month for his mobile bills even though his actual bill is RM 30 this month.
Pay As You Use
A billing method where you only pay for what you use. Eg: Network Provider A’s internet data cost RM0.10 per 1MB. So if you 2MB today, you will pay RM0.20 for your usage.
Postpaid customers are those that are billed on a monthly basis and could be bound by a contract. All postpaid plans in Malaysia have a monthly commitment fee that needs to be paid monthly.
Basically companies that provides mobile services. Examples of network providers in Malaysia are Maxis, Digi and many others.
This is how the network providers charge your calls. Eg: Telco A has a 30 second charge block. This means that you will be charged for every 30 seconds of your call.
|Call Period||Charge Block|
|0 - 29 seconds||RM0.15|
|30 - 59 seconds||RM0.30|
|1 minute - 1 min 29 seconds||RM0.45|