IoT - M2M Connectivity - Prepaid or Postpaid?

International or national data Iot/M2M - sim cards Big data: Postpaid vs prepaid?

What are the differences? When should you choose a post-paid sim card and when a pre-paid one?

When you need international mobile data to connect your devices or employees to the Internet, one of the decisions you need to make is how you want to source and access the data. Here we describe the advantages and disadvantages of post-paid and prepaid proposals.

Post-paid :

+ You have a fixed monthly rate with consumption thereafter. This is good for a case with stable usage per month and per region,

+ Easy to budget as recurring costs are the same every month.

- There are a few terms in the contracts (in small letters) that may provide a negative surprise later on.


Examples:

  • An "out-of-package" rate higher than the "package-included" rate as agreed,
  • Loss of unused data at the end of the month,
  • The data can only be used in a certain number of countries or continents,
The package is too small for month A and too large for month B. 

If your need for mobile Internet is the same every month, and you can choose a package that exactly matches that need, a post-paid proposal is the best option.

 

Prepaid :

+ The advantage is that you only need to focus on the price per MB and the number of months during which the data package remains accessible,

+ You only pay for what you use, and your data is always available when you need it,

+ If your data needs are flexible, you won't lose unused data in month A, and you won't pay higher rates in month B,

+ It offers you the most cost-effective solution, to learn in practice what the real need is per region and per year,

- You need to purchase a data credit in advance, which means an initial investment,

- Budgeting is less straightforward, as costs may vary by month or by year.

If the need for mobile Internet may differ by month or by country, then a prepaid proposition is the best solution.

 

What's the best solution for your situation?

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