Telecards

Though post paid connections can be lucrative for the telecommunication company, they have a few disadvantages.
Some of these are:
1. Though most telecommunication companies will insist on a deposit initially, at least a few of their subscribers will become defaulters . They will run up high bills and disappear.
2. Bills have to be send periodically to the customers by mail . The payment has to be collected and receipts provided. This adds to the cost of running a business.

Prepaid telecards / calling cards overcome these disadvantages and are increasingly popular for mobile and landline phones.