If you use an affordable phone, you can reduce communication costs.Many people are curious about why the price of affordable phones is cheaper than the three major telecommunications companies.I’d like to look at how the affordable phone plan is cheap.
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Affiliates of major telecommunications companies, affordable phone companies
Table of Contents
1. Overview of Affordable Phone Companies
2. Cost structure of affordable phone companies
3. Advantages of the affordable phone plan
4. Disadvantages of the affordable phone plan
5. At the end,
1. Overview of Affordable Phone Companies
A thrifty phone company refers to a business that rents and resells the communication networks of three major telecommunications companies.The exact concept is a telecommunications reseller or a mobile virtual network operator (MVNO), which is close to cost-effectively impossible to build its own network, so it’s already leased and operated across the country.
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affordable phone
It is worth noting that communication networks are leased and used.Affordable phone companies sell affordable phone plans according to SKT network, KT network, and LG U+ network.It means that the quality of communication is the same as that of major carriers because the network is rented and used. There are some people who have the image that the internet speed seems to be slow and the phone doesn’t work well because of the term thrift, but it’s groundless.
2. Cost structure of affordable phone companies
How will a thrifty phone company rent it?There are two main categories.The first is a pay-as-you-go rental (RM) and the second is a revenue share (RS).
Pay-as-you-go rental (RM, Retail Minus)
The pay-as-you-go type is a method of determining the unit price to pay per MB.In other words, it is a method of paying as much as you use, but it is mainly applied to 3G plans.It’s a familiar concept for people who play a lot of online games.It’s easy to understand when you think of the monthly flat rate and pay-as-you-go plan.
Revenue Share (RS)
Revenue allocation rental is a method of paying carriers a certain percentage of the plan’s price.It is mainly applied to LTE and 5G plans.For example, if you borrow a monthly plan of 69,000 won and do business, and the RS ratio is set at 70%, the affordable phone company has to pay a rental fee of 48,300 won to the rental carrier.Depending on the RS ratio, the price of the affordable phone plan rises or falls, and the lower the RS ratio, the cheaper it becomes for consumers to use.
The RS ratio is determined by the government in consultation with major carriers every year.However, major carriers do not try to lower the RS ratio.This is because the bigger the affordable phone market, the less profitable it is for them.
3. Advantages of the affordable phone plan
The advantage of the affordable phone plan is that it is available at a price of 50% compared to the same rate plan of major telecommunications companies.Also, it is a no-contract plan.It is common to buy a smartphone from a major telecommunications company with a 24-month contract.
The device may fail within 24 months or lose it, so there may be cases where the 24-month contract period is not met.It is also burdensome to use an expensive plan for 24 months, but if you cancel it within the period, there will be a huge penalty.Since the affordable plan is non-contracted, it is recommended that there is no penalty even if the number is transferred to another carrier at any time.Also, the price of the plan itself is very low, so there is no stress on communication costs.Once you taste the affordable phone, it becomes difficult to return to a major carrier.
4. Disadvantages of the affordable phone plan
The disadvantage of the affordable phone plan is the lack of additional services.Major telecommunications companies offer a variety of benefits as they are expensive, but it is difficult to expect additional services when using affordable phones.For example, there are many things that major telecommunications companies can use through services such as data gift and data sharing.The membership system is also very good if you make good use of it.However, the price of affordable phones cancels out all of this.Therefore, it is important to spend wisely considering your usage patterns.
5. At the end,
In this way, we looked at the cost structure of affordable phone companies and the advantages and disadvantages of affordable phone plans.There is no right answer to which one should be used.Depending on your situation and usage pattern, it is recommended to use the best plan for you.If you have used your smartphone for more than two years and use it without a plan agreement, I recommend you to experience the affordable phone plan at least once.It’s a no-deal.
