Telecom APIs are not a revenue item in and of themselves, but rather table stakes needed to continue growth of the US$1 trillion telecom market. Operators in this huge market will benefit when opening up their networks through Telecom APIs, as they are delivering revenues of well over US$100 billion per year.
Operators’ monetization comes through increased usage of the service, and supporting APIs can create an innovative ecosystem that in turn drives new business development.Service providers want to monetize in multiple ways, which vary according to the types of APIs and applications.
ABI Research believes that the most effective monetization from APIs is to offer a variety of data plans and innovative services that will suit different subscribers, by an overall data plan and targeted bundles of service offerings. In addition, Telecom APIs provide access to reporting and billing facilities for applications to respond to network conditions and subscribers’ data plans. The access gained with the API improves performance and customer satisfaction, and most importantly, gets OTTs working with operators.
ABI Research analyst, Sabir Rafiq comments, “Operators are continuously looking to gain a competitive edge and at the same time avoid losing revenue to low-cost OTT applications. Telecom APIs help operators build a ‘sustainable moat’ which draw OTTs into a cooperative position, open new markets and to generate extra revenue from existing customers.”
Leading infrastructure vendors such as Ericsson and Nokia work with operators to develop APIs for monetization, optimization, new business models, increase efficiency, and lower costs.
Continuing, Rafiq notes, “It is important for operators to consider the bigger picture of APIs, as this is a long-term way of growing their businesses, and not just a one-time thing."
These findings are from ABI Research’s “Telco APIs and Monetization” report and are part of the Telco Big Data Analytics and CEM Market Research.
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