pooled versus stacked subscriber plans

Shiva Badruswamy, President, MobileForce Inc.www.digitalmobileforce.comMarch 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 basisOverage charged to all subs when bucket is full and overflowsCosts are divided equally over all subs

Each subscriber buys an individual bucketAll the individual buckets are pooledAt 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.


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 MOUsPrice/line +

Stacking Total cost71% Voice 100 100 $14.99 1251 125100 $14.99 $18,7520% Voice 300 300 $21.99 1 300 $21.99 $22

28% Voice 600 600 $26.99 496 297600 $26.99 $13,3870% Voice 1000 1,000 $39.99 2 2000 $39.99 $800% Voice 1500 1,500 $54.99 0 0 $54.99 $00% Voice 2500 2,500 $99.99 0 0 $99.99 $00% 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 PLANSPlan 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 0Enterprise 10 $500 10000 10 $50.00 $0.05 0 $0 0 0Enterprise 15 $750 15000 15 $50.00 $0.05 0 $0 0 0Enterprise 20 $1,000 20000 20 $50.00 $0.05 0 $0 0 0Enterprise 25 $1,250 25000 25 $50.00 $0.05 0 $0 0 0Enterprise 35 $1,750 35000 35 $50.00 $0.05 0 $0 0 0Enterprise 50 $2,500 50000 50 $50.00 $0.05 0 $0 0 0Enterprise 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 0Enterprise 150 $7,500 150000 150 $50.00 $0.05 0 $0 0 0Enterprise 175 $8,750 175000 175 $50.00 $0.05 175 $8,750 175,009 1Enterprise 250 $12,500 250000 250 $50.00 $0.05 250 $12,500 250,000 1Enterprise 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

ü


pooled versus stacked subscriber plans

Business