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Operators Find New Revenues Through Open APIs, Heavy Reading Says

Telcos may miss out on the opportunistic open API market if they do not rise to the occasion quickly, says Heavy Reading Service Provider IT Insider

BOSTON, Dec. 12, 2012 /PRNewswire/ -- Application programming interfaces (APIs) can provide telcos numerous opportunities and generate billions of dollars, but unsuccessful or slow-to-market telcos risk being utterly outgunned in terms of innovation capability, according to the latest report from Heavy Reading Service Provider IT Insider (www.heavyreading.com/servsoftware), a paid research service of Heavy Reading (www.heavyreading.com).

Opening the Door to Web Developers: How APIs Can Generate Billions for Operators looks at the opportunity for telecom operators to generate new income streams by using APIs to offer access to their network assets. It considers the services that can be introduced, reviews the infrastructure requirements and offers a detailed case study of an operator that has an aggressive API monetization strategy. It also analyses the products and services that third-party API solution providers can bring to the market, comparing leading vendors in terms of market positioning.

For a list of companies analyzed in this report, http://img.lightreading.com/ssi/pdf/spiti1212_companies.pdf

"Telecom operators are continually hunting for new sources of revenue and new ways to gain a competitive edge," says Simon Sherrington, Senior Analyst at Heavy Reading and author of the report. "APIs offer telecom operators a quite literally golden opportunity to open up new markets, to generate extra revenues from the customers and assets they already have in place, and to deliver customized services that add more value for their customers and that will make their services more sticky."

However, operators not embracing this opportunity as fast as the market potential suggests they should because they have to expose complex, core assets to third parties, Sherrington says. "Fixed network operators and cable operators must not make the mistake of assuming this is a mobile market," he continues. "The power in APIs is in providing access to national or even global bases of end users. The biggest opportunities will emerge where API federation is supported."

Key findings of Opening the Door to Web Developers: How APIs Can Generate Billions for Operators include:

  • Exposure of APIs has the potential to generate billions of dollars for telecom operators around the world.
  • While mobile operators have made the early running with location-based services, there are opportunities for fixed and cable operators.
  • APIs offer an opportunity to deliver services more closely tailored to customers' requirements, and to bring in new revenues.
  • Operators are still learning their API craft, but are evolving strategies quickly.
  • Operators must overcome operational, cultural and reputational hurdles to win in this market.
  • Those that are successful will be able to harness vast developer communities.

Opening the Door to Web Developers: How APIs Can Generate Billions for Operators is available as part of an annual single-user subscription (six issues) to Heavy Reading Service Provider IT Insider, priced at $1,595. Individual reports are available for $900 (single-user license).

To subscribe, or for more information, please visit: www.heavyreading.com/servsoftware. For more information on all of Heavy Reading's Insider services, please visit www.heavyreading.com/research.

To request a free executive summary of the report, or for details on multi-user licensing options, please contact:

Jeff Geddes
Account Manager
Heavy Reading
303-997-9135
[email protected]

Press/analyst contact:
Jennifer Baker
Marketing Director, Light Reading Communications Network
617-747-4110
[email protected]

About Heavy Reading (www.heavyreading.com)

Heavy Reading is an independent research organization offering deep analysis of emerging telecom trends to network operators, technology suppliers, and investors. Its product portfolio includes in-depth reports that address critical next-generation technology and service issues, market trackers that focus on the telecom industry's most critical technology sectors, exclusive worldwide surveys of network operator decision-makers that identify future purchasing and deployment plans, and a rich array of custom and consulting services that give clients the market intelligence needed to compete successfully in the global telecom industry. As a telecom research arm of the Light Reading Communications Network (www.lrcn.com), Heavy Reading contributes to the only integrated business information platform serving the global communications industry.

About Light Reading Communications Network (www.lrcn.com)

The Light Reading Communications Network combines the most trusted telecom research brands with award-winning online communities and a rich events portfolio to deliver the only integrated business information platform serving the global communications industry.   With the power of this platform, leaders who build, deploy, finance, and regulate next-generation telecom networks are able to make more informed decisions on emerging market and service opportunities.  Light Reading Communications Network is a division of UBM Tech (tech.ubm.com), the global leader in technology media and business information. 

SOURCE Heavy Reading

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