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(Wireless-NewsWire.Com, December 17, 2015 ) Mobile network operators (MNOs) are gradually moving from telecom-centric to IT-centric operating models and are adopting the same approach that has driven the success of online service providers. Monetization of application programming interfaces (APIs) is one of the most prominent facets of this evolution. MNO API monetization has traditionally been structured around extensive developer outreach programs supported by a Web based technology platform. Messaging, location and billing are the primary APIs opened by MNOs. Beyond this group of APIs operators, in particular those in emerging markets, have remained relatively conservative about exposing APIs. The financial impact of telecom operator API programs remains uncertain, but indications are that the direct revenue boost is moderate at best.
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Key Findings
MNOs are gradually moving from telecom-centric to IT-centric operating models: The change is dramatic.
Operators are increasingly narrowing the scope of their API programs, shifting toward more partnerships targeting specific vertical ecosystems and focusing on B2B.
Beyond the primary APIs opened by MNOs - messaging, location and billing – operators, in particular those in emerging markets, have remained relatively conservative about opening APIs.
The revenue impact of operator API programs is moderate at best.
Operators recognize that the application, not the API, is the end product.
Ultimately the efforts to monetize APIs are about more than building up alternative revenue streams as traditional ones dry up. They are central to broader efforts to accelerate the pace of innovation within the organization.
Synopsis
The Report ‘Telecom APIs - Monetizing Their Most Valuable Assets Is Transforming Mobile Operators’ by Pyramid Research examines one of the more striking manifestations of the ongoing transformation of telecom operators – their growing willingness to monetize tightly held assets such as networks, billing systems and user relationships, and to expose APIs to third-party developers. Building on our examination of a dozen operators around the world, the report analyzes the strategic drivers and structures of MNO asset monetization programs, along with their impact on the operations and bottom lines of operators. The report also provides a number of case studies of API programs from around the world.
What else does this report offer?
A clear analysis of the strategic rationale and key drivers behind the trend of exposing APIs.
Key operator business models and tactical approaches to monetizing their API assets.
Detailed investigations into six operator API programs, laid out in detailed case studies.
Crucial market insights based on the analysis of the API programs of 20 key mobile operators globally.
Forty exhibits helping to make sense of the different approaches to asset monetization.
Actionable recommendations for mobile network operators.
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Reasons To Buy
Learn best practices from the experience of operators that have launched API programs - successfully or not.
Put some tangible numbers on the revenue potential of opening APIs for your organization.
Assess the various revenue models available when exposing APIs.
Understand the deeper strategic and day-to-day implications of exposing APIs on your organization.
Get the external and internal parameters you need to decide whether your organization should expose APIs.
Get a clear view of the broad KPIs you need in order to assess whether your API program is successful.
Table of Contents
Exposing MNO APIs - Strategic rationales and key drivers
Strategic rationales for MNO asset monetization – The
revenue challenge
Strategic rationales for MNO asset monetization – The
disintermediation risk
When should telcos consider exposing APIs?
Exposing APIs: Timing matters
Behind the decision to expose APIs
The MNO response – Toward IT-centric models
MNO asset monetization – From outsourcing tower
operations to opening up customer data
Risks of monetizing APIs: Revenue cannibalization, cybercriminality
Going API: A summary review
The 20 API programs we reviewed
API programs – Program structure
API program structure – An overview
MNO API programs: Communities, support and revenue
sharing
API programs – Abandoning the long tail?
MNO API programs are gradually narrowing their focus
API programs – What should MNOs expose?
The MNO API portfolio – Available API assets
Messaging, billing and location are the most widely exposed
assets
The MNO API portfolio – What are operators monetizing?
API programs – Breaking down the revenue model
From wholesale to retail, three main business models
Business models: Wholesale
Business models: Wholesale with aggregators
Business models: Retail
API monetization – Free with revenue sharing
The evolving revenue model – The application is the
product
API best practice summary
The impact of API monetization on operational structure
The move to monetize assets is strategic
A new cultural mindset
Looking for the optimal organizational structure
Adjusting organizational structure to serve the developer
market
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