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