Date post: | 05-Dec-2014 |
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Building the Telecom Application Developer Ecosystem
Building the Telecom Application Developer Ecosystem
Middle Managers, Desk Jockeys, PowerPoint Politicians, Full-Time Standards People, People who believe Management Consultants, Wage-Slaves, People waiting to retire or made redundant, The Risk Adverse, Yes-People, People
who do what the boss tells them regardless, Corporate Anti-Bodies, etc.
Innovators, risk takers, small companies, technology leaders, independent thinkers, creatives, people working at intersections of industries, etc.
TADS comes from the grassroots
The Web has won, so let’s get with the program
BUT no ‘black and white’ thinking! There’s space for both,
Telecom reaches 6B+ people
Analysys Mason Prediction on Messaging and ARPU
Telco p2p messaging will become niche, anticipate rapid revenue decline as SMS moves to data. Analysys Mason is predicting a >25% ARPU decline by 2018.
Industry needs to find >$100B in new revenues within 5 years.
$100B Ecosystem!
We’re Underestimating the Impact of when WhatsApp adds Voice
Page 10 The Western European Syndrome may be upon us sooner than we think
BUT Telcos can get it Right!
Page 11
Why do Telcos need APIs?
Without APIs Telecoms will become irrelevant as Service Providers because customers will expect communications to be embedded in their experiences. — Alan Quayle, Independent Telecom Thinker
§ APIs will become critical to maintaining Telecom’s customer relevance
The money is not ‘in the API,’ it’s in the service delivered by the API. APIs are simply delivering services more efficiently, which opens up new business opportunities. — Jose Valles, ex-VP Partner Products at Telefónica
Digital
§ APIs are just a technology, its all about the services
An API strategy is becoming a must…in terms of speed to market with new products, maximizing business development, and product development opportunities. — Steve Kurtz, VP Business Development, USA
TODAY
§ APIs are a global IT trend across all industries
Why do Telcos need APIs?
1995 2000 2005 2010
Why do we need a Web site?
Of course we have a Web site
Why do we need an API?
Of course we have an API
Innovation Upsell
New business
Operational efficiency Increase footprint Accelerate internal projects
Extend products / services Make churn harder Partner opportunities
New distribution Device and mobile support
Telecoms is the ‘vital spice’ of any successful business ecosystem
Process automation
Where’s the Money in External APIs? Mobile payments revenue, source BI Intelligence. Includes Apple, Android, Square, Visa Mobile, etc. $244B by 2017
$157B by 2018 Total Telecom API revenue, source Mind Commerce. Payment, Communications, Identity, Cloud, etc.
$18B in 2016 Alan Quayle’s view is the revenues will be $18B and dominated by payment and communication service revenues by 2016
Juniper predicts DCB (Direct Carrier Billing) growing from $2.5B in 2012 to $13B in 2017 (this assumes only digital downloads, not goods and services)
Market Situation: API Bait and Switch
API
Roll-up, roll-up, buy my API software, expose some APIs, to gain fame and fortune just
like Apple and Google
What is sold
What happens in practice
Fixed Voice($325B)
Mobile Voice($615B)
Fixed Data
($275B)
Mobile Data
($275B)
Regulated Services($1.5T)
Un-‐regulated Services($650B)-‐5 to -‐7%
5.5 to 9%
3 to 4%
0 to 2%
0-‐2%
Total Telecoms Services($2.15T)
3-‐6%
+ =
Over the Top Messaging hits SMS growth
Mobile substitution of fixed broadband with LTE
OTT substitution, saturation, competition
Mobile and OTT substitution
Sources: operator averages across developed and developing markets, supplier estimates, Alan Quayle
1-‐3.3%Threats to Revenue
There’s just 2 things we need to focus on
Customers
Services
Make Telecoms an Essential Spice for every Business Recipe
Do more VAS!
“Most men would rather deny a hard truth than face it.”
Work with Developers to embed communications
into applications, services and business processes.
Make Comms the ‘essential spice’ of every business
ecosystem.
$40B by 2018 source Mind Commerce
Work with Developers to create new services and
applications using communications
capabilities. Innovate in communications else watch
revenue decline.
$35B by 2018 source Ovum
So What Should Telcos Do?
Telecom Application Developers are now essential to addressing the revenue decline in communication services.
Previous efforts have failed, corrective action is required urgently.
Defining what is meant by Telecom App Developer R
even
ue
Product
Internal Telco Developers
Partner Developers
Telecom App Developers
Mobile App Developers
Long Tail Developers
This Is A More Accurate Representation R
even
ue
Product
Internal Telco Developers
Partner Developers
Telecom App Developers
Mobile App Developers
Long Tail Developers
‘Cut and Paste’ web developers using web-scripting and graphical tools on
app platforms (10Ms)
IT/Web Programmers building on FOSS, telecom app
platforms and telecom APIs (1Ms)
What do we mean by Telecom App Developer?
Hardcore Telco Software Infrastructure
(10ks)
All based on IT / Web Technologies and Development Principles
Developers that recognize they build telecom apps
today
‘Cut and Paste’ web developers using web-scripting and graphical tools on
app platforms (10Ms)
IT/Web Programmers building on FOSS, telecom app
platforms and telecom APIs (1Ms)
TADS is about Building an Ecosystem
Hardcore Telco Software Infrastructure
(10ks)
All based on IT / Web Technologies and Development Principles
Developers that recognize they build telecom apps
tomorrow
Developer Needs/ (Responsibilities)
Telco Needs/ (Responsibilities)
Vendor Responsibilities/ (Needs)
Modern and easy to use tools, docs & support (Communicate Needs) Go-to-market support Viable business models
Meet Dev tech needs
Support and protect the telco network
Brokering
Safely expose assets
Help from vendors in
building the necessary go-to-market support and business models
Innovation Community of
developers
(Publicity)
Process that supports hundreds of new services
(Publicity) Industry-wide Best Practices
TAD Manifesto
Examples of Telecom App Dev happening today! For more details: http://alanquayle.com/category/startups-to-watch/
Uber-ification of Business
Communications is Core to On-demand Services
Go-to-Market is Critical, and a Critical Telco Value
Customers
Selling Services
Selling Capabilities
Internal
Partners
External
Telco
Telco GTM
ECOSYSTEM
SERVICES