Business case model — ALDI Mobile US proposal
ALDI Mobile US Reach — MVNE Partner & Network Aggregator ALDI — brand partner · commission

Business case model — ALDI Mobile US proposal

An interactive model of Reach's commercial proposal to ALDI Mobile US. Reach is the operator and carrier of record: it collects subscriber revenue, pays ALDI a commission plus marketing fund, exclusivity and bonuses, runs the Verizon network, platform and all support, and keeps the profit. Below you can see what Reach earns, what ALDI is paid, the up-front cash required, and how the case moves under different assumptions — every figure is driven by the editable inputs, so change any assumption and the model recalculates.

Investment required for Reach to win ALDI's RFP
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This figure is set by the subscriber volume forecast and the ALDI commercial terms. Check and adjust the Subscriber growth — Gross Adds and the Commercials — payments & investments to ALDI to see the raise move.
Every number is driven by the inputs in Section 01 — start with the four plans and the device-care attach rate.
Click here to open Section 01 · Inputs →
Scenario
How to read: cost / cash to raise · profit · risk
High-level summary of Reach — key metrics
Investment required incl. buffer
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Year 1 EBITDA
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Year 5 EBITDA
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EBITDA margin Yr 5
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Self-funds from
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Reach — P&L (7-year)

Topline revenue collected gross, from subscribers—
Reach gross margin post network & ALDI fees/commission—
EBITDA pre-tax, deal standalone—
Recommended raise incl. buffer—

ALDI — P&L (7-year)

Commission from Reach plan share—
Funds & bonuses MDF, exclusivity, signing, bonus—
Device-care margin ALDI's share of premiums—
Total ALDI gross margin after ALDI's own costs—
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01

Inputs & assumptions

iThis is the only place you change numbers. Everything recalculates the moment you edit a field. Hover the small i beside any field — or any P&L line below — for what it means and drives. Per-year cards vary by year; single-value cards apply across the plan.
iStructure note. Reach is the operator and carrier of record: it collects all subscriber revenue and pays ALDI a commission (derived from the plan margins) plus the RFP commercial-template investments — marketing fund, exclusivity, signing bonus and annual bonus. Reach then carries the Verizon network, platform and support and keeps the profit.
02

Funding & cash

iWhy the raise only covers Year 0 and Year 1. In Year 1 the signing bonus, ALDI investments, Verizon network and L1 land before subscriber revenue catches up, so cumulative cash dips below zero. Once the base ramps it turns positive and never returns. The deepest point of that dip is the cash Reach must have on hand — that is the funding number.

Cumulative cash position

Quarterly through Year 1 · Red = raise-funded · Green = self-funded
Hover a point to highlight its value.

The justification, in one line

    03

    P&L summary

    iThe same deal from both sides. Reach collects all subscriber revenue, pays ALDI its commission and funds, carries the Verizon network and operating costs, and keeps the profit. ALDI is paid commission, funds and the device-care margin. Switch between the two P&Ls below; hover the i on any line for a definition, and toggle each chart between a single year and the running cumulative.

    Reach What Reach earns (our ROI)

    Reach collects all subscriber revenue, pays ALDI its commission and funds, then carries network, Asurion and operating costs. Device-care uses your per-tier Reach margin; Asurion's share shows as a separate cost line.

    Reach EBITDA

    Subscriber growth

    Active base, end of year

    Revenue vs cost

    Revenue collected   Total cost   EBITDA

    L1 Care team sizing (a Reach cost)

    Agents scale with the active base — this is Reach's operational headcount on the account. US agents take calls; offshore agents take chat & email. The team is hired ahead of each ramp to train. Configure subs-per-agent & the US/offshore split →
    04

    Sensitivity — key downside risks

    iThe risks that move this deal. The base case assumes the Verizon network fee declines $0.50/year and retail pricing holds. The real downside is if those don't happen: the network fee stays flat (no annual decline), ALDI users run heavier data so the fee is higher than the $12–13 estimate, or competitive pressure pulls retail prices down. Each card re-runs the full model under that stress so you can see the hit to profit and to the funding number.

    Read before the raise

    • The flow. Reach is the operator and carrier of record: it collects all subscriber revenue, pays ALDI a commission on plan revenue (plus device-care margin, MDF, exclusivity and bonuses), runs the Verizon network, platform and support, and keeps the profit. ALDI's P&L is purely what Reach pays it — no retail topline sits on ALDI's side.
    • Commission is derived from the plan margins. The commission rate ALDI is paid is the plan-implied Aldi take (~32–38% of revenue). It is shown in the Plan mix section and flows straight into the Reach → ALDI waterfall.
    • Reach's net per sub is thin. After paying ALDI's commission, Reach keeps ~$17–19/sub; the Verizon network rate then decides whether the deal is healthy or marginal.
    • Device care uses your per-tier Reach margin — set each tier's Reach margin; Asurion's share appears as a separate cost line on Reach's side.
    • Reach headcount = the L1 team. At 2,000 subs/agent it scales to a few hundred agents by Year 7 — adjust the ratio to match your actual contact-rate assumptions.
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