The postpaid mobile plan market has grown significantly over the years due to the increasing demand for unlimited data and convenient billing solutions.
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As the market continues to grow, we can expect more competition and aggressive marketing from mobile operators.
In 2021, there were more than 75 million active postpaid mobile subscribers in the United Kingdom.
The percentage of postpaid subscribers was, therefore, approximately 77.92%.
With the percentage of postpaid subscribers steadily increasing each year, it’s safe to say that there is a significant shift in preference towards postpaid mobile plans.
Postpaid Mobile Plans
Postpaid is a billing term for services billed at the end of each month or billing cycle.
Your bill will include the base cost of your plan and any additional charges for exceeding your plan’s limits.
What is a Postpaid Mobile Plan?
A postpaid mobile plan is a contract between the user and their mobile operator.
This contract typically includes contract terms, such as the duration, which is commonly 12 to 24 months.
Each postpaid plan comes with a data allowance, which is a set amount of data, calls and texts available per month, with options for unlimited becoming increasingly popular.
Users can select a postpaid plan that fits their budget and needs, but should consider perks and bundles included by mobile operators.
Who are Postpaid Mobile Plans for?
Generally, postpaid services are best for people with a secured income.
Still, some people may find postpaid services more in tune with their mobile usage:
- Mobile phone enthusiasts can spread the cost of flagship smartphones over 12 to 24 months, making them more accessible.
- Families can benefit from multi-line services, that usually come bundled with different entertainment subscriptions.
- People who like convenience will never have to worry about running out of balance during important calls.
Most modern smartphones automatically keep track of data used and conveniently display it in a graph.
This simplifies monitoring data usage, as well as setting data limits and warnings to avoid unexpected charges.
Pro-tip to navigate to the data usage panel:
- On Android devices, go to: Settings > Connections > Data Usage
- On Apple devices, go to: Settings > Cellular
How Billing Works with Postpaid Mobile Plans?
Postpaid mobile plans are essentially subscription-based mobile services.
They are most commonly billed at a fixed rate, which means that you pay the same amount each month, for the plan you’re subscribed to.
Usage exceeding the amount of services included in your plan will be added to your bill at a different rate.
Mobile operators offer different tiers of postpaid mobile plans designed for light and heavy users.
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Analyzing your monthly usage can help you choose the best fit.
For example, if you have leftover data, a lower tier might be a better choice for you.
Downgrade and upgrade policies are different with each mobile operator.
Some might offer options for downgrading or upgrading mid-contract, others only after the original contract period is over (usually after 1 or 2 years).
We’ve gathered some of the best mobile virtual network operators by country and the plans they offer. Check them out: Best MVNOs & Mobile Plans by Country: Ultimate List (2024)
What to Look Out For in a Postpaid Plan
When choosing a postpaid plan, it is important to understand certain terms and conditions that could affect your service.
Two common terms you might encounter are deprioritization and throttling. Let’s briefly explain what they mean.
Deprioritization
Deprioritization occurs when the network is congested, and your data speeds are temporarily slowed down.
This can happen, for example, during events like the World Cup finals – when everyone is streaming the match, network congestion can lead to deprioritization.
While deprioritization is usually temporary and only happens during peak times, it can impact your ability to stream videos or browse the internet at high speeds.
Throttling
Throttling refers to the intentional slowing down of your data speeds by your mobile provider once you’ve exceeded your data allowance for the month.
Unlike deprioritization, it can persist for the remainder of your billing cycle.
This means that if you go over your data limit, you might experience slower speeds until your next billing period.
For instance, your connection might be throttled from 5G to 3G speeds, or from 4G to speeds sufficient to send and receive MMS messages.
When considering a postpaid plan, make sure to inform yourself about the contract.
It’s good to know if an unlimited plan is not being throttled after reaching a certain limit.
By understanding network operator’s policies and procedures you reduce the risk of unexpected overcharges and increase the chance of a great decision when choosing your mobile plan.
Loading ...Major Players and Offers
Major players in the postpaid mobile plan market include well-known telecom companies like:
- Verizon,
- AT&T,
- Vodafone,
- and T-Mobile.
These are for sure, some of the best MNOs (mobile network operators) in the US and globally.
The MVNO (mobile virtual network operator) market is also worth pointing out.
With their focus on marketing, they offer valuable service packages to their customers.
One of the best deals we’ve seen recently is the unlimited data for social media, music and entertainment apps.
Want to know more about the difference between MNOs and MVNOs? See how they compare: MNO vs MVNO: What is the Difference?
Market Analysis and Growth
With the percentage of postpaid subscribers steadily increasing each year, it’s safe to say that there was a significant shift in preference towards postpaid mobile plans over the years.
The Rising Popularity of SIM-only Plans
Looking at the current state of the market in the UK, there is an increase in SIM-only plan popularity.
SIM-only plans are essentially postpaid mobile plans without a device contract included.
According to the latest research, 35% of phone customers in the UK use SIM-only contracts, with the most common contract duration of 12 months.
Prepaid mobile services have declined in popularity, but that does not make them obsolete.
They can still be a good choice for certain mobile users. Check out how they differ from postpaid mobile plans: What is the Difference Between Postpaid vs. Prepaid Plans?
What is the Average Cost of Mobile Services per Month in the UK?
The average cost of SIM-only plans has also decreased by 26.73% from 2016.
The latest data indicates that the average cost of a SIM-only plan (15 GB & 100 minutes) is £22, down from £37 in 2016.
The same trend can be seen in contracts that include a mobile device, with the cost decreasing, the average monthly price is approximately £27. For a complete overview of statistics, check out Uswitch’s UK SIM only statistics and facts.
Enhance your Billing Process with Tridens
Postpaid billing seems straightforward, but there is a complex system running behind the scenes.
In need of a robust system for defining and managing various types of postpaid mobile plans?
Want to simplify your telecom billing processes?
We’re happy to take your billing experience to the next level with Tridens Monetization for Telecommunications.
FAQs
A postpaid plan is a mobile phone plan where you are billed at the end of each cycle (month) for the services used.
With a postpaid plan, you receive a bill at the end of each billing cycle that includes your plan’s base cost and any additional charges. Payments are typically monthly.
Consider factors such as data limits, coverage area, network reliability, contract terms, additional fees and perks offered. Comparing different plans and reading the fine print can help you make an informed decision.
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