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Shiva Badruswamy, President, MobileForce Inc.
www.digitalmobileforce.com
March 2014
A Walkthrough of Pros and Cons
A comparative analysis
between Pooled and
Stackable Plans
What are Stackable Capacity and Pooled Capacity Plans? Illustrated
using “Minutes” as the underlying unit of capacity.
2
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
Stackable Plans have distinct advantages over Pooled Capacity Plans
3
 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.
A Case Study: In a typical case, stackable minutes plans produced 7%
in cost savings over pooled minutes plans
4
STACKABLE PLANS
Mix Plan name # of MOUs Price/line # of lines MOUs
Price/line +
Stacking Total cost
71% Voice 100 100 $14.99 1251 125100 $14.99 $18,752
0% Voice 300 300 $21.99 1 300 $21.99 $22
28% Voice 600 600 $26.99 496 297600 $26.99 $13,387
0% Voice 1000 1,000 $39.99 2 2000 $39.99 $80
0% Voice 1500 1,500 $54.99 0 0 $54.99 $0
0% Voice 2500 2,500 $99.99 0 0 $99.99 $0
0% Voice 5000 5,000 $199.99 0 0 $199.99 $0
1750 425000 $32,241
MoU 243 Stacking Fee $0.00 Minutes 425,000
Avg MRC $18.42 Lines 1,750
POOLING PLANS
Plan Published price Minutes Lines Avg. Cost/Line Cost/Min Total Lines Total Cost Mins Have Plan ?
Enterprise 5 $250 5000 5 $50.00 $0.05 0 $0 0 0
Enterprise 10 $500 10000 10 $50.00 $0.05 0 $0 0 0
Enterprise 15 $750 15000 15 $50.00 $0.05 0 $0 0 0
Enterprise 20 $1,000 20000 20 $50.00 $0.05 0 $0 0 0
Enterprise 25 $1,250 25000 25 $50.00 $0.05 0 $0 0 0
Enterprise 35 $1,750 35000 35 $50.00 $0.05 0 $0 0 0
Enterprise 50 $2,500 50000 50 $50.00 $0.05 0 $0 0 0
Enterprise 75 $3,750 75000 75 $50.00 $0.05 0 $0 0 0
Enterprise 100 $5,000 100000 100 $50.00 $0.05 0 $0 2 0
Enterprise 150 $7,500 150000 150 $50.00 $0.05 0 $0 0 0
Enterprise 175 $8,750 175000 175 $50.00 $0.05 175 $8,750 175,009 1
Enterprise 250 $12,500 250000 250 $50.00 $0.05 250 $12,500 250,000 1
Enterprise 500 $25,000 500000 500 $50.00 $0.05 0 $1 14 0
AAL 0 $10.00 1325 $13,250 0 1
1,750 $34,501 425,025 2
MoU 243 Minutes 425,000 Max no of BANs 2
Avg MRC $19.71 Lines 1750

Copyright: MobileForce Inc. Proprietary Material. All Rights Reserved.

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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. 2 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 3  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.
  • 4. A Case Study: In a typical case, stackable minutes plans produced 7% in cost savings over pooled minutes plans 4 STACKABLE PLANS Mix Plan name # of MOUs Price/line # of lines MOUs Price/line + Stacking Total cost 71% Voice 100 100 $14.99 1251 125100 $14.99 $18,752 0% Voice 300 300 $21.99 1 300 $21.99 $22 28% Voice 600 600 $26.99 496 297600 $26.99 $13,387 0% Voice 1000 1,000 $39.99 2 2000 $39.99 $80 0% Voice 1500 1,500 $54.99 0 0 $54.99 $0 0% Voice 2500 2,500 $99.99 0 0 $99.99 $0 0% Voice 5000 5,000 $199.99 0 0 $199.99 $0 1750 425000 $32,241 MoU 243 Stacking Fee $0.00 Minutes 425,000 Avg MRC $18.42 Lines 1,750 POOLING PLANS Plan Published price Minutes Lines Avg. Cost/Line Cost/Min Total Lines Total Cost Mins Have Plan ? Enterprise 5 $250 5000 5 $50.00 $0.05 0 $0 0 0 Enterprise 10 $500 10000 10 $50.00 $0.05 0 $0 0 0 Enterprise 15 $750 15000 15 $50.00 $0.05 0 $0 0 0 Enterprise 20 $1,000 20000 20 $50.00 $0.05 0 $0 0 0 Enterprise 25 $1,250 25000 25 $50.00 $0.05 0 $0 0 0 Enterprise 35 $1,750 35000 35 $50.00 $0.05 0 $0 0 0 Enterprise 50 $2,500 50000 50 $50.00 $0.05 0 $0 0 0 Enterprise 75 $3,750 75000 75 $50.00 $0.05 0 $0 0 0 Enterprise 100 $5,000 100000 100 $50.00 $0.05 0 $0 2 0 Enterprise 150 $7,500 150000 150 $50.00 $0.05 0 $0 0 0 Enterprise 175 $8,750 175000 175 $50.00 $0.05 175 $8,750 175,009 1 Enterprise 250 $12,500 250000 250 $50.00 $0.05 250 $12,500 250,000 1 Enterprise 500 $25,000 500000 500 $50.00 $0.05 0 $1 14 0 AAL 0 $10.00 1325 $13,250 0 1 1,750 $34,501 425,025 2 MoU 243 Minutes 425,000 Max no of BANs 2 Avg MRC $19.71 Lines 1750  Copyright: MobileForce Inc. Proprietary Material. All Rights Reserved.