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Informa Exposing Telecom APIs

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How can telecom operators monetize APIs? Which APIs are most valuable today and tomorrow? Telecom API market stakeholders from around the world share their views and concerns in this Informa Telecoms & Media research extract.

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Informa Exposing Telecom APIs

  1. 1. Exposing Telecom APIsCamille MendlerDimitris MavrakisInforma Telecoms & Media Research extract February 2013
  2. 2. What is an API?‘APIs are how people get to your business.’ Sam Ramji, Apigee1. An interface defining rules to interact with software components • Exposes specific functionality and/or data • Allows communication with other apps2. Simplifies access to complex processes • Improves customer experience • Speeds time to consumption3. Stimulates innovation • Supports mashups, the combination of APIs to create a new application Picture: flickr/droetker0912 February 2013 © Informa UK Ltd. All rights reserved. 2 www.informatandm.com
  3. 3. Informa’s Exposing Telecom APIs survey Exposing Telecom APIs: Survey respondents Content API broker /Goals producer / aggregator / distributor• Which telecom APIs are valued? Device / vendor / owner 3% Other* 6% module /• Is demand rising? chipset maker 3%• Who is involved? 4% CloudResults services Telecom• 369 respondents provider operator 6% 35%• 72% already directly involvedin the API ecosystem Integrator / consultancy 10%Method Software• Online survey, Nov-Dec 2012 Network developer / vendor infrastructure 21% vendor 12% n= 369 Source: Informa Telecoms & Media, Exposing Telecom APIs survey, 2012 *Other: Broadcaster, regulator/government, academia/research February 2013 © Informa UK Ltd. All rights reserved. 3 www.informatandm.com
  4. 4. Survey respondents by geography Exposing Telecom APIs: Survey respondents by geography Latin Middle EastRespondents from 60 countries America 5% 7%• Balanced between developed Easternand emerging economies Europe and Western CIS Europe• Notable response from Africa 9% 31% Africa 13% North Asia Pacific America 20% 15% n= 369 Source: Informa Telecoms & Media, Exposing Telecom APIs survey, 2012 February 2013 © Informa UK Ltd. All rights reserved. 4 www.informatandm.com
  5. 5. Highlights • Two thirds of operators already have an API initiative underway • Emerging market operators are rapidly getting involved • APIs for telco big data analytics are the no. 1 new requirement • Developers want to dig into telco subscriber behavior • Three quarters of (non-telco) API market stakeholders expect telecom API demand to multiply over the next two years • Mobilization of the web is the key driver of API demand • A fifth of API stakeholders don’t know of any telco API program • Telco API fragmentation is the leading reason for developer discontent and lack of awareness • More than half of API stakeholders want telcos to pool APIs • Suggestions include an existing API aggregator or as a telco-only group, despite the failure of the Wholesale Applications Community February 2013 © Informa UK Ltd. All rights reserved. 5 www.informatandm.com
  6. 6. Exposing APIs is becoming the rule Telecom operators: Are you developing your own APIs? Picture: flickr/ Horia Varlan 30% launched 35% no plans 35% under development Base: Telecom operator respondents (n= 126) Source: Informa Telecoms & Media, Exposing Telecom APIs survey, 2012 A flood of new telecom APIs will appear in 2013. February 2013 © Informa UK Ltd. All rights reserved. 6 www.informatandm.com
  7. 7. It’s a truly global trendDeveloped market telcos are active Lebanon Kenya IndonesiaSo are many in emerging markets Malaysia February 2013 © Informa UK Ltd. All rights reserved. 7 www.informatandm.com
  8. 8. Appetite for telecom APIs will growNon-telcos: How will demand for telecom APIs evolve over the next two years? Demand will grow due to ongoing mobilization of 75% web/cloud Demand will drop, APIs from non-telco firms will dominate 17% Picture: flickr/ Horia Varlan Demand levels will stay the same 8% Base: Non-telco respondents involved in the API ecosystem (n=192) Source: Informa Telecoms & Media, Exposing Telecom APIs survey, 2012The digital economy needs APIs to drive efficient – and satisfying –consumption of cloud, mobile and broadband resources. February 2013 © Informa UK Ltd. All rights reserved. 8 www.informatandm.com
  9. 9. Telecom APIs: They’re not just for SMS Telecom operators: APIs on offer • Account management/provisioning Messaging 66% • API for B2B2C operations (ex contact APIs) • Behavior management Billing 66% • Call Control, Micro Payment, Credit Transfer Location / presence 52% • Call Management • Customer service management Device management 37% • Eligibility Security /identity mgmt 34% • Interactive TV • Inventory management Social networking 30% • Mobile payment Unified communications • M2M, digital commerce and advertising 29% • Predictive medicine Number portability 28% • Service activation Other 18% Base: Telecom operator respondents already active in API ecosystem (n= 83) % of respondents Source: Informa Telecoms & Media, Exposing Telecom APIs survey, 2012Although the top 3 are no surprise, operators’ API portfolios are diversifying. February 2013 © Informa UK Ltd. All rights reserved. 9 www.informatandm.com
  10. 10. Today: Billing tops telecom API needs Non-telcos: Which telecom APIs are most valuable? • Airtime top up Billing / payments 61% • Data roaming Identity / subscriber data management 46% • Device configuration Location 28% • Mobile money • Number portability SMS / MMS 26% • Prioritization M2M 20% • QoS • RCS service APIs UC and related call control 20% • SIM / UICC APIs Security 20% • Voice / video calling Presence and IM 16% Device capability discovery 13% Other 25% % of respondents Base: Non-telco respondents involved in the API ecosystem (n=192) Source: Informa Telecoms & Media, Exposing Telecom APIs survey, 2012Although priorities are broadly aligned, telecom operators believe that theirbilling and M2M APIs are more valuable than non-telcos credit them to be. February 2013 © Informa UK Ltd. All rights reserved. 10 www.informatandm.com
  11. 11. Future: Two thirds want access to telco big data Non-telcos: What other telecom APIs have high potential? Exposing subscriber, device, app and network analytics to preferred partners (eg: Big Data) 70% Access a global carrier’s worldwide reach for wholesale billing, voice + messaging delivery 59% Automating access to cloud-based storage and compute resources (eg: IaaS) 54% Providing a virtual office-in-a-box to small businesses (eg: UC, virtual desktop, business apps) 43% Managing prepaid data roaming and inter-standard roaming (e.g. LTE) 40% % of respondents Base: Non-telco respondents involved in the API ecosystem (n=192) Source: Informa Telecoms & Media, Exposing Telecom APIs survey, 2012Telco usage analytics lead the API shopping list - but avoiding data protectionand privacy pitfalls won’t be easy. February 2013 © Informa UK Ltd. All rights reserved. 11 www.informatandm.com
  12. 12. What are the biggest issues? Some out-takes“Inconsistent APIs between carriers are off-putting “It is mandatory that Telcos exposeto developers, especially for enterprise applications.” standardized APIs (e.g. Parlay X, or extensions for billing).API broker It is a major missed opportunity that Telcos did not agree on APIs to offer features that OTTs cannot have (e.g. billing, QoS).”“APIs are not Telcos’ strong suit, and its really thenimbleness and rapid evolution that makes it tough Integratorfor Telcos to keep up.Fragmentation by creating various universalcoalitions/standards, but they never work. “Make APIs as easy to use as possible. Avoid making developers’ lives miserableA developer needs to know that their messages will (e.g. keep an eye on what Twilio or Voxeoget delivered regardless of the carrier the user has.” have done on simplifying voice APIs ).”Cloud service provider Software developer Source: Informa Telecoms & Media, Exposing Telecom APIs survey, 2012 February 2013 © Informa UK Ltd. All rights reserved. 12 www.informatandm.com
  13. 13. What should telcos do to be successful? Non-telcos: What’s the No. 1 action that telcos should take to be successful in the API ecosystem? Ally with other operators to sell APIs globally 26% Outsource API monetization to a trusted partner 26% Focus on developing their own web- standard APIs to improve their own services 20% Become trusted brokers of their own and 3rd party APIs 18% They will never be successful due to strength of existing competition 5% Base: Non-telco respondents involved in the API ecosystem (n=192) Source: Informa Telecoms & Media, Exposing Telecom APIs survey, 2012 To succeed, telcos must market APIs beyond their direct sphere of control. February 2013 © Informa UK Ltd. All rights reserved. 13 www.informatandm.com
  14. 14. For telcos, APIs are part of a wider transformationStandardized SDNhardware Base ‘Cloud’ stations OSS Telecom BSS Policy IT APIs Server ‘Big Data’ farmsVerticalization Virtualization APIs will be used across telco operations – they are not simply another operational silo or discrete business. February 2013 © Informa UK Ltd. All rights reserved. 14 www.informatandm.com
  15. 15. Final thoughts• APIs are becoming the common currencyof the digital economy • Telecom operators must offer APIs in order to trade• Telecom APIs have a strong and growing rolein the post-PC world • Their subscribers remain their key asset• Success lies in wide telecom API distribution • Telecom operators can’t do it alone• Direct monetization of telecom APIs remainsquestionable • Consequential benefits need further validation Picture: flickr/droetker0912 February 2013 © Informa UK Ltd. All rights reserved. 15 www.informatandm.com
  16. 16. For more information:Camille Mendler Dimitris MavrakisPrincipal Analyst Principal Analystcamille.mendler@informa.com dimitris.mavrakis@informa.comTwitter: @cmendler Twitter: @dmavrakis 16

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