Subscription rate higher than pay-as-you-go

[aquab1]

The pay-as-you-go (same thing as "pay-per-minute"?) rate for calling Philippines mobile is 16 cents per minute (incl. VAT).  The monthly subscription rate (incl. VAT) is 19.2 cents per minute for 60 minute plan, 18.2 cents for 120 min plan, and 12.9 cents for 400 min plan.  Except for the 400 min plan, the subscription rate is HIGHER than the pay-as-you-go rate.  This doesn't make sense, or am I missing some hidden fees?

[NormanM Moderator]

Hello,

Let me try to clarify for you.

The PAYG rate to call the Philippines is 13.9cents per minute or part thereof for landlines and 17.4cents for cellphones.

(There is no VAT charged on calls from/to anywhere). The VAT rate is there simply as an indication if you have paid VAT on your credit purchase.

PAYG calls attract a connection fee whereas Subscription calls do not.

http://www.skype.com/intl/en-us/prices/payg-rates/connection-fees/

For example a 1 minute PAYG call to a Philippines landline costs 13.9cents 7.9cents = 21.8cents.

This compares with Subscription call rates of 

60 Minutes 17.2 cents/minute.

120 Minutes 16.7¢/minute

400 Minutes  12.5 cents/minute

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