NEK Discussion Points (2026-08-11)

Background

Can be shared in an email

Tellusant introduced PoluSim in 2022. Soon thereafter, a the commercial installation was with BIC.

NEK became a subscribing customer in July 2024 with the strategic forecasting module of PoluSim. It covers over 100 countries. Key collaborators were Matteo Peccei and Stephan Coolen, and local opco experts (initially Panama, Mexico, India, the UK…). PoluSim is now called Telescope internally at NEK.

In 2025, we did a pilot on near-term forecasting with the UK and and Romania teams. We also built a global strategic pricing module.

Thus, there are currently three properties:

1. Telescope annual strategic module
2. Telescope strategic pricing optimization module
3. Telescope monthly operational pilot.

All three are in wide use within relevant departments.

The questions at hand are:

• How much effort and cost would expanding pilot entail?
• Could the commercial terms be changed from subscription to license and what are the costs?

Expansion of monthly (short-term) forecasting

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These estimates were previously shared with NEK (Peccei).

Monthly forecast expansion has two separate fees:

A. One-Time Setup

• Top European OpCos: €450k–€900k
• All top OpCos: €600k–€1.4m

The final cost will depend on model complexity and any additional requirements from the OpCos. These estimates are based on our experience working with the two pilot markets, providing monthly forecast and drivers for the next 18-month. We assume the countries are those with monthly Nielsen or similar data, although it is not hard to create monthly models for non-Nielsen countries (Denton method).

B. Ongoing Annual Subscription

• Top European OpCos: €180k–€250k per year
• All top OpCos: €300k–€420k per year Note that we could explore quarterly forecasts instead that could give sufficient details, and be more efficient for OpCos.

Licensing Thoughts

To be discussed only. Not in email.

We have previously discussed a licensing arrangement with NEK as an alternative to the current subscription model. Cost is approximately €1.2M–€1.5M (without the monthly expansion). Under this setup, NEK would get: Ability to host the model on their own servers Full access to the model source code Ability to directly edit and maintain the model code Continued Tellusant support as needed for data and TelluBase, covered through an ongoing subscription We believe this setup would provide NEK with significantly more ownership and flexibility. They can, of course, suggest an alternative structure if they have something different in mind.

Separately, there is opportunity to improve annual planning with a focus on flex drivers as inputs to OpCo’s more systematically, rather than freeform. This could involve AI implementation and incorporation of industry reports. This is a ~20% increase on top of other changes in subscriptions (added features, other support, etc.)

As for subscription renewal, we recommend moving toward a long-term commitment rather than 1 year.