#### smartflight

##### Member

If it's a TRAI order, what law/order is it? A link would be helpful.

- Thread starter smartflight
- Start date

If it's a TRAI order, what law/order is it? A link would be helpful.

Consider there is same plan of Prepaid and Postpaid of Rs 300.

In 1 year, for Prepaid we would have to pay 300 x 13 = 3900. (365 days /28 days = 13 )

For Postpaid it would (300+45) x 12 = 4100, where Rs 45 is service tax at 15%.

Difference between Prepaid and Postpaid is Rs 200 for 1 year.

Now if Prepaid was for 30 days, then people would recharge by 300 x 12 = 3600, so difference would be Rs 500, and more people would opt for Prepaid (at least those like me who do lots of calculations ).

With higher amounts this difference may go higher, resulting with lower ARPU for operator.

I've been trying to get some info on this for a while, ideally from a legal perspective, but haven't found much.

One year has 12 months of vary number of days. So 1 subscriber using 3G will recharge with 12 data packs each year.

By making validity of 28 days, telecos effectively made 13 months (28 days x 13 = 364 days ie 1 year) . So, the same above mentioned customer should have to recharge 13 times instead of 12 times hence more revenue.

IIRC this shady practice was first started by Airtel and then rest of the industry followed

MBA guys did increase the revenue by this method. :biggrin:MBA guys have to justify their salary

D

Because 28 days per month makes 13 months in an year.