Independent Review of Telecom APIs

Sept 20th 2013

Structure: Alans Bit

The Painful Facts!

Why do telcos need APIs?
Why all the big numbers?
Beware the Bait and Switch!
Where are the Telco API successes?
Dos and Donts of Telco API success
Mapping the API landscape!
Where are Telecom API going?
What needs to change?

2
2010 Alan Quayle Business and Service Development
Structure: Jeans Bit

TeleStax introduction

What is RestComm?

HealthSense Case Study: using Telecom APIs to help baby boomers

age safely

RestComm demo

3
2010 Alan Quayle Business and Service Development
Structure: Juans Bit

Case Study: Bank using joyn API for self-service

Case Study: Telco using joyn API for self-service

Case Study: Leading IVR/contact vendors adding a new channel

using the telco API.
o http://blogs.voxeo.com/voxeotalks/2013/09/04/joyn-voxeo-cxp-a-new-
way-to-deliver-customer-care/

4
2010 Alan Quayle Business and Service Development
Structure: Dans bit

The Tropo story

Tropo's products in a nutshell

Some deployed case studies

Use cases and other cool stuff

5
2010 Alan Quayle Business and Service Development
Structure: Luiss bit

APIDAZE: facts & figures

Presentation of the APIDAZE REST API

Customer case: How a leading European affiliate network increased

its revenue by 15% using APIDAZE

APIDAZE & WebRTC

WebRTC integration using APIDAZE

6
2010 Alan Quayle Business and Service Development
No developed market telco
has successfully engaged
mobile application
developers with Telecom
APIs
 BUT Telecom API
successes have come from
using APIs internally
 AND Telecom API
successes have come from
using APIs with existing
partners
 APIs reduce business
friction. This means the
value is not in the API its
in the service or data
delivered through the API.
 Mobile Application Developers
ONLY care about direct access to
a large engaged customer base
that is prepared to pay. Apple
and Android fulfill this need,
Telcos are IRRELEVANT
This is the Most Important Slide in the Pack
Revenue

Internal Telco Developers

Partner Developers
Telecom App Developers
Mobile App Developers
Long Tail Developers

Product
Why? graphic
Why do Telcos need APIs?
APIs are just a technology, its all about the services

The money is not in the API, its in the service delivered by the API. APIs are simply
delivering services more efficiently, which opens up new business opportunities.
Jose Valles, VP Partner Products at Telefnica Digital

APIs are a global IT trend across all industries

An API strategy is becoming a mustin terms of speed to market with new products,
maximizing business development, and product development opportunities.
Steve Kurtz, VP Business Development, USA TODAY

APIs will become critical to maintaining Telecoms customer relevance

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
 What is an API?

http://www.telco.com/api.php?action=remove_friction

APIs reduce business friction by making it easy for software systems to work together
using existing well understood web technology that any IT person can understand
 Why do Telcos need APIs?

Why do we need a Of course we have Why do we need Of course we have

Web site? a Web site an API? an API

1995 2000 2005 2010

New distribution Device and mobile support
Accelerate internal projects Operational efficiency Increase footprint
Upsell Innovation Make churn harder Partner opportunities
Extend products / services Process automation New business

Telecoms is the vital spice of any successful business ecosystem

 What if a Telco does nothing?
Telco becomes the path of last
resort as apps use easy and
economical APIs for 90% of
comms
Applications

Easy and Economical 90%

Global comms clouds Laggards 10%

Telco

Customers
Wholesale thats a good model!
Telco gets commoditized and
detached from customers for
Business
Consumers comms services
Offers
services
direct
Offers
services
direct
Laggards 10%
Easy and Economical 90%
Global comms clouds

Telco

Commoditizes
pricing
Reality graphic
Market Requirements: Why are operators spending
money on API?
M2M to support provisioning and management
Wishful thinking in building a developer community like Android and
Apple
Support open innovation and work more easily with partners on new
business models and market opportunities
Support internal innovation, in some cases focused on specific market
segments like enterprise
Support open innovation with specific partners targeting specific
market segments
Experimenting in what APIs could means to their business
Build specific business opportunities like direct carrier billing (mobile
payments)
Laziness
 Dos and dont of telco API success?

Focus on internal and partner innovation with APIs

o DO NOT chase long tail developers, telcos are now irrelevant
Focus initially on doing 1 or 2 services well, e.g. payments and
communications
Focus on building a business
o DO NOT publish an API and hope hackathons are enough
o You will need sales, marketing, business development and critically support
Focus on the proposition to the top-target API consumers
o DO NOT waste time on platform or ecosystem game theory
o Build a business first, then focus on the platform and ecosystem
Mapping graphic
Mapping Telcos across the API Implementation
Landscape
Organizational Focus of APIs
Internal APIs Both External APIs
Experiment
Business Use of APIs

Focused

Likely
Evolution
Path

Broad

Telecom Italia does not have everything right, for example, they lack the focus on
building API-enabled businesses, but its closer than most.
Mapping vendors across the API landscape
Informational APIs Transactional APIs
(e.g. customer profile) e.g. call control

Developer API Publishers

Community Voxeo Labs,
Twilio
Developer
Portal
API Management (including API Security)
API
Intel Software (Mashery), CA (Layer 7), Apigee
Management

API
Services

Network
Gateway
Cloud / IT /
Network IMS
BOSS Service
Assets Assets
Assets Assets
Where are External Telco APIs going?

External Telecom API Roadmap

o Payments: whether to expand beyond digital downloads
o Communications: across all VAS not just calls RCS, messaging,
number provision, WebRTC, etc.

Focus on building a businesses around the APIs rather than

publish and wishful thinking
o Sales, marketing, business development and critically support
o Traditional transition from tech-focus to business-focus
 Brown-Nosed
Middle Manager!
Market Chatter
is Monopolized
 Mobile
Everything,
WebRTC
Customers

Services
 0-2% 1-3.3%
Threats to Revenue
5.5 to 9% Mobile
Over the Top Messaging Data
hits SMS growth ($275B)

Fixed
3 to 4% Data
($275B)
Mobile substitution of fixed
broadband with LTE 3-6%
Regulated Total Telecoms
Services Services
0 to 2% Mobile ($1.5T) ($2.15T)
Voice
OTT substitution,
($615B)
saturation, competition

-5 to -7% Fixed
+ Un-
regulated
Services
($650B)
=
Mobile and OTT Voice
substitution ($325B)

Sources: operator averages across developed and developing markets, supplier estimates, Alan Quayle

Theres just 2 things we need to focus on

Make Telecoms an Essential Spice for every Business Recipe
Do more VAS!
 No. We tried a
similar service in our
market and it failed,
and were never ever
going to try again

What do you think of this service idea?

 No. It will not work in
our market. Because
Im a 50 year old guy
who understands all
my customers better
than they know
themselves.

What do you think of this service idea?

 No. A feature of your
service overlaps with
an existing.

What do you think of this service idea?

 No. We have a
similar service
launched, and are not
going to experiment
to make it better or
address other
customer segments.

What do you think of this service idea?

 No. Our network can
not support such as
service, even though
such services are
going over the top
today.

What do you think of this service idea?

 No. It looks a bit like
Joyn, were not sure
about it, but because
it looks a bit like
something we may do
in the future were not
going to do it.

What do you think of this service idea?

 No. It must work
across all devices,
even though most
devices will never use
it.

What do you think of this service idea?

 No. We need
additional (random)
features included
before we could
consider it.

What do you think of this service idea?

 No. It must work on
IMS (even though it
doesnt need to).

What do you think of this service idea?

 No. It must work
across all our
customers from day
one, even though
most will never use it.

What do you think of this service idea?

 No. It must conform
to our process and
design norms. But
were not going to tell
you what they are.

What do you think of this service idea?

 No. It must integrate
with all our existing
platforms, even
though it can work
fine in the current
configuration.

What do you think of this service idea?

 No. It must be
delivered through our
preferred SI or NEP,
who will copy / kill
the service
immediately.

What do you think of this service idea?

 No. You must work
through our app store
/ portal, which were
in the process of
closing.

What do you think of this service idea?

 No. We can only focus on
4 service launches per
year. We only back major
successes like Video
Telephony, Mobile TV,
Push To Talk, See What I
See

What do you think of this service idea?

 No. We just dont
have the bandwidth,
to do our job.

What do you think of this service idea?

 No. We have a
network lock-down as
we launch LTE so
cannot do anything
for the next 6-9
month.

What do you think of this service idea?

 No. Bob has left the
business and were
waiting on his
replacement, who
never comes.

What do you think of this service idea?

 No. Were waiting on
annual budgets to be
confirmed, sometime
in the next 6-12
months.

What do you think of this service idea?

 No. Were re-
organizing again this
year.

What do you think of this service idea?

 No. Someone in the
organization doesnt
like such services.

What do you think of this service idea?

 No. That cannot be
implemented without
changing our IN /
product catalog /
CRM / billing /
network.

What do you think of this service idea?

 No. We cannot bill /
sell services under $5
per month.

What do you think of this service idea?

 No. We have a
backlog of 24 months
on billing updates,
even though the
service doesnt need
to be in that pipeline.

What do you think of this service idea?

 No. You must work
through our
innovation group who
we all hate and ignore
as theyre parasites on
our business.

What do you think of this service idea?

 No. You must talk with
Bob who will then pass
you to Bill, who will then
pass you to Mary, who
will then pass you to
Paul, who will then pass
you back to Bob.

What do you think of this service idea?

Telecom Application Developer Ecosystem
Revenue

Internal Telco Developers

Partner Developers
Telecom App Developers
Mobile App Developers
Long Tail Developers

Product
www.tadsummit.com