is it true that the postpaid call rates is higher than prepaid?

prepaid - 18sen/min to all

postpaid - 20sen/min to other telco

yeah, that is because postpaid users have to pay for the 6% service tax while prepaid users do not have to do so.

The 6% service tax is in addition to that la.... what you talking?

"It is in addition to that"(postpaid users = price of prepaid users + 6% service tax), I think that probably that you've misunderstood my wording in a way or two

Dude, you are right. Coz the prepaid charging is included 6% but not postpaid. Every postpaid plan has 6% charge extra for call and sms exclude pure data plan.

So, prepaid charge should be more expensive than postpaid charge as it includes tax

This post has been edited by prosibu: Sep 27 2013, 06:30 PM

I think you're both confused.

Prepaid you pay RM0.18 per minute. That's it. Of course, effectively could be cheaper cos you can get 15% off reload etc. etc. but we ignore that.

Postpaid you get charged (not pay) RM0.20 per minute. AFTER that, you get taxed.

So if you make 5 minutes of call in the month, you get charged RM1. Then you get taxed. So you pay RM1.06.

Effectively, you GET CHARGED RM0.20 per minute but you PAY RM0.21.

As to why? Different market segment, treated differently. Postpaid sure pay more than prepaid, as digilife said, prepaid more benefit.

Of course, I'm primarily a data user and need overseas roaming so I don't mind using postpaid. Still cheaper than anything else except the lousy-coverage digi.

I "am" talking about the same thing , just that you don't get my wording.
meanwhile, for prosibu, he may have worded it a bit wrongly, but at least you get the idea.

As for the why the 6% tax is charged, I would say that your reasoning is wrong, as prepaid users don't need to pay for it because our telco subsidies it.

Source: http://www.thestar.com.my/story.aspx?file=...7457&sec=nation

The different rates are nothing to do with service tax, and everything to do with business.

well, you can't say there's no relation to it at all though, since if there's service tax and the telco needs to absorb the tax then it means that they'll earn less for postpaid plans so in return they'll have to charge more in order to earn the same or even higher amount of profit as compared to the prepaid plans(but of course, the telco may give you other addon or benefits to make it more worthwhile)

You claim they absorb for prepaid meaning they'll earn less for postpaid? Do you read your post ah?

any deadspots in KL & Selangor vicinity??

dunno y, but everytime travelling towards Sunway pass the "mini jambatan pulau pinang" it seems there is no connection..

For termination of plan, need to go to their store for termination. Cannot do it via phone call. Suck

considering that the amount of subscribers are both the same, and the profit before tax is the same, then yeah. Since if the profit is the same for both plans before tax, and if the telco absorbed the 6% tax then the profit for postpaid will be less than prepaid per se.

You're not making sense. How does telco absorbing for prepaid make postpaid less profitable?

If profit before tax is same, then after absorbing 6% profit for prepaid will be less than that of postpaid.

Enough la... No need gaduh prepaid should br charged more or what, you don't like, u can opt for prepaid too

no gaduh pun

at least that its better than letting "some anonymous person" to terminate your plan via phone call, no?

Profit for prepaid will be lesser. sorry my fault. anyway, what I meant is that assuming that both prepaid and postpaid plans earn the same amount of profit, then if service charge is applied for only the prepaid plans then the postpaid plan's rate needs to be increased in order to reach the equilibrium.

Can always do verification on my personal information right?