Sunday, April 20, 2014

Is Smart trying to kill it's post-paid business?

I have never bothered with the hassle of applying for a postpaid contract with an ISP provider. I have always been a prepaid subscriber of either Smart Bro or Globe Tattoo, depending on where I am currently residing, whether it is Smart or Globe territory. While prepaid services can be as much as 20 percent more expensive as postpaid, the appeal is the convenience of no long term contract. I hate you today, I'm moving on to another ISP. I don't even have to text or call you. We are done. It is as simple as that. That's the beauty of prepaid.

So what would be the advantage of postpaid? That it is cheaper or was cheaper -- for Smart, at least. With Smart's new pricing scheme for the Smart Bro UNLISURF packages, prepaid is now the same price as postpaid. 1 month service is 995 Php, 15 days is 500 Php, and 7 days is 250 Php. That being the new pricing scheme of Smart, I am thinking, why would anyone want a postpaid contract with Smart now? What's the value in that?

The only logical answer is that Smart is moving it's business from postpaid to prepaid. It saves them the hassle of collecting the monthly payments. Prepaid is convenient not only for the consumers but even for the providers. It makes perfect sense.

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