Hands off Pre-Paid Accounts

The National Budget provision to collect $4.00 from each cell phone should exclude pre-paid accounts. Pre-paid customers pay a higher rate than post paid, even though paying in advance.
Paying in advance is a premium to providers because it helps them with their cash flows, whereas they have to wait for payment from post-paid customers.

These premium customers are not treated with any hospitality. In most business practices the premium customers are the ones that get the discounts. Why is it the opposite for the Premium customers of the cell phone providers; i.e. the ones that pay in advance? Furthermore, when their debits expire they are abruptly cut off even if on a call.

The household survey published by BANGO in November 2007, http://www.igloo.org/bangoonline/download-nocache/Library/telecomm/survey1spe, found that 97% of the low income community have pre-paid accounts. A look at the market summary below will show that pre-paid customers are already saddled with 57% more charges than post paid customers for the same unit of time.

Market Summary – Cell phone rates

Average daytime rate
Pre-paid - 0.55 cents
Post-paid - 0.35 cents

Average early mornings & Evenings
Pre-paid - 0.50 cents
Post-paid - 0.35 cents

Late nights & Weekends
Pre-paid - 0.45 cents
Post-paid - 0.35 cents

Considering this extra burden on pre-paid accounts, it is only fair that any levies on cell phones for pre-paid accounts should be placed on the cell providers, since, seemingly, they are already collecting largesse from pre-paid accounts.