Stackable vs Pooled Capacity Plans: 7% Cost Savings Case Study
1. Shiva Badruswamy, President, MobileForce Inc.
www.digitalmobileforce.com
March 2014
A Walkthrough of Pros and Cons
A comparative analysis
between Pooled and
Stackable Plans
2. What are Stackable Capacity and Pooled Capacity Plans? Illustrated
using “Minutes” as the underlying unit of capacity.
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Pooling explained Stackable Explained
Copyright: MobileForce Inc. Proprietary Material. All Rights Reserved.
All subs share a pooled bucket on a First Come First
Serve basis
Overage charged to all subs when bucket is full and
overflows
Costs are divided equally over all subs
Each subscriber buys an individual bucket
All the individual buckets are pooled
At the end of a billing cycle all leftover minutes from
each bucket are added to create the overage pool and
any overages are netted against this overage pool
3. Stackable Plans have distinct advantages over Pooled Capacity Plans
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Stackable plans have several advantages over pooling plans, especially the
ability to avoid “wasted capacity” and ability to negotiate better value for
customers
Billing
flexibility
Right-fit by
need
Avoid "Wasted
minutes"
Minimize
Overage
Lower costs
Operational
difficulties
Customers can bill back the line and service to individual users while receiving the
benefits of a shared (pooled) service.
Rather than simply pulling from one large pool of capacity, each line may purchase its
own bucket to bring to the group. Light users can choose a lesser bucket of capacity
while heavy users can choose a high bucket.
Unused capacity is donated to the shared pool to be used by subscribers to net their
incurred overage, therefore reducing “wasted capacity”
Stackable features allow users to reduce overage by borrowing unused capacity from
other subscribers in the shared group.
Pooling requires multiple Billing Account Numbers (BANs) to offer the best price and
flexibility to customers, whereas stackable plans just need a single BAN
Our analysis shows that, at a certain break point capacity, stackable plans offer
better value for customers than pooling plans do.
Copyright: MobileForce Inc. Proprietary Material. All Rights Reserved.