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Thread: Monthly vs 30 day renewal for "monthly" plans

  1. #1
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    Monthly vs 30 day renewal for "monthly" plans

    I've noticed that some MVNO plans renew monthly on the same date, for example Boost and Twigby, while others renew every 30 days, for example Tello and AT&T Prepaid.

    I wonder if the 30 day renewals are a subtle ploy to make pricing look better than it really is. With monthly billing, the carrier gets exactly 12 billing cycles per year. With 30 day billing, they get 12.17 billing cycles per year, which is roughly 1.4% more money.

    I prefer monthly renewal on the same date, since it's much easier to remember the renewal date. The 30-day billing doesn't seem very customer-friendly to me.

    Anyone else have thoughts on this?

  2. #2
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    Quote Originally Posted by spocko View Post
    I've noticed that some MVNO plans renew monthly on the same date, for example Boost and Twigby, while others renew every 30 days, for example Tello and AT&T Prepaid.

    I wonder if the 30 day renewals are a subtle ploy to make pricing look better than it really is. With monthly billing, the carrier gets exactly 12 billing cycles per year. With 30 day billing, they get 12.17 billing cycles per year, which is roughly 1.4% more money.

    I prefer monthly renewal on the same date, since it's much easier to remember the renewal date. The 30-day billing doesn't seem very customer-friendly to me.

    Anyone else have thoughts on this?
    They are providing 5 days less service per year on the "30 day" plans for sure.

  3. #3
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    It's an annoyance. Still, with 2nd grade made, easy enough to calculate what the annual cost would be.

    In our case, $150/360*365=$152.08, or as pointed out by the OP, 1.4% more. Not really enough to lose sleep over. Probably the most annoying part is the calendar date the actual cycle roll over occurs on. Makes keeping track of air time usage slightly more complicated. More so for those that go over their allotment.

    Like everything else these days, pay more and get less..

    Look at a container of OJ, ice cream, or other food products... Fortunately, a gallon of milk is still a [email protected]#

  4. #4
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    There are people who go paycheck to paycheck. And maybe use a debit card to make payments, where it helps if the renewal date is after they are paid. 30 day periods can mess with this.

    I can recall arranging credit card payments to be after a paycheck cleared.

    If you have a CC, or can have enough money in your checking account to have a buffer, it is more of an inconvenience. I'll get a text or an email telling me my plan renewed today, and I'll add it to Quicken.
    iPhone 11 is my current primary phone. I have older model iPhones and Moto phones available on other lines. Trying to simplify to 2 prepaid lines, one on the Verizon network and a limited minute plan on ATT to improve coverage area. 12 month plans to help me fight the urge to switch. The good old days of contracts where you had to pay a hefty ETF to leave

  5. #5
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    Maybe a calendar reminder like this would help. Red pocket's annual plans are convenient. Just 2 dates to keep track of, the expiration date at the end of the year and 90 days prior. There's enough buffer to buy the plan during the christmas promos.


  6. #6
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    They absolutely are doing it to subtly raise prices.

    I think it should be illegal to advertise a price "per month" and then charge it every 30 days, even if they put it in the fine print.

    I fear it's going to be the new normal for everything soon. Rent, utilities, etc etc.

    Unless they're ok with me paying in dollars that are 95 cents each...

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