A case study in stimulating the marketplace with an innovative pricing structure.
Data Licensing Start-Up
A new pricing structure was needed to open up competition for the use of UK Number Information. The regulator had made a detailed determination and a stand-alone business was set up to buy / sell / license the data. High operating costs needed to be recovered, but a low barrier to entry was needed to stimulate new entrants and service innovation.
A full study was undertaken to understand the data, categories, volumes, uses, costs of collection, storage, technology and much more. Using these insights a revolutionary new pricing methodology was created – with negligible fixed entry costs and variable usage-based pricing depending upon the type of data and end use. Licensee numbers increased by over 600% in two years and profits exceeded all target projections.