30 days in a month, but why the validity is only 28 days; How are companies earning extra money from customers?

Telecom Companies 28 days Recharge Plan: Major telecom companies of the country like Airtel, Jio and Vodafone-Idea have very cleverly reduced the validity of recharge from one month to 28 days. This question comes to the mind of almost every mobile user at some point or the other, why is this so? At first glance, this seems to be a deliberate trick or a fraud on the users. This is because when we say monthly recharge, it means 30 days.

However, a very thoughtful mathematical model of the companies works behind this. Let us understand the entire calculation behind this and the rules made by the government on it in simple language.

28 day formula beneficial for companies

An average of 30 days is called a month, but when telecom companies are giving customers the option of 28 days recharge, a question arises in people’s minds that are the companies cheating them? The answer is- no. In fact, companies clearly mention the date of validity on all their retirement plans. Although they definitely play with your psychology. If you divide a year i.e. 365 days by the 28 day cycle of companies, the result looks something like this.

One month’s extra earning for companies

• If companies offer a 30 day plan, you will recharge 12 times in a year.
• But since there is a 28 day plan, 2 or 3 days are saved every month.
• These remaining days add up to the end of the year and make a full recharge of 28 days i.e. one full extra month.
• You recharge 13 times a year instead of 12.
• Companies earn an extra month from every customer.

Companies’ argument on 28 day formula

When companies were questioned on this issue, their reasoning was a bit technical. telecom companies It says that all months of the calendar are not equal. Some months have 31 days, some 30, and February has 28 or 29 days. To keep the prepaid system automatic and fixed, he chose a standard 28-day cycle that would fit each month without any changes.

Has any action been taken on this yet?

In view of this dissatisfaction of the customers, the country’s telecom regulator Telecom Regulatory Authority of India (TRAI) has adopted a strict stance. According to the order of the telecom regulator, now it is necessary for all the telecom companies like Jio, Airtel and Vodafone-Idea to have at least one plan in their portfolio, whose validity is for full 30 days. Along with this, a calendar month plan also has to be given, which gets renewed on the same date of every month (e.g. if recharge is done on 15th, then the next recharge will be on the next 15th only, whether the month is 31st or 28th).

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The government is also continuously putting pressure on the companies to promote these 30 day plans on the front so that the customers can get the right information and options. Despite this, companies still sell 28 day plans the most because they look cheap.