Building the TAD ecosystem
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The document discusses the importance of building a telecom application developer ecosystem to address declining revenues in the telecom industry, projected to be over $100 billion in new revenue opportunities within five years. It emphasizes the critical role of Application Programming Interfaces (APIs) in delivering essential services and enhancing customer engagement, alongside the need for collaboration with developers to innovate and embed communications into applications. The text also highlights the risks posed by over-the-top (OTT) services and the necessity for telecom companies to adapt their strategies to remain relevant in a rapidly evolving marketplace.
Building the TAD ecosystem
- 1. Building the Telecom Application Developer Ecosystem Building the Telecom Application Developer Ecosystem
- 5. 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. TADS comes from the grassroots Innovators, risk takers, small companies, technology leaders, independent thinkers, creatives, people working at intersections of industries, etc.
- 6. The Web has won, so let’s get with the program
- 7. BUT no ‘black and white’ thinking! There’s space for both, Telecom reaches 6B+ people
- 8. 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.
- 10. We’re Underestimating the Impact of when WhatsApp adds Voice Page 10 The Western European Syndrome may be upon us sooner than we think
- 11. BUT Telcos can get it Right! Page 11
- 12. Why do Telcos need APIs? § APIs are just a technology, its all about the services 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 a global IT trend across all industries 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 will become critical to maintaining Telecom’s 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
- 13. Why do Telcos need APIs? 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 1995 2000 2005 2010 New distribution Device and mobile support Accelerate internal projects Operational efficiency Increase footprint Upsell Innovation Make churn harder Partner opportunities New business Extend products / services Process automation Telecoms is the ‘vital spice’ of any successful business ecosystem
- 14. Where’s the Money in External APIs? Mobile payments revenue, source BI Intelligence. Includes Apple, Android, Square, $244B by 2017 Visa Mobile, etc. $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)
- 15. Market Situation: API Bait and Switch Roll-up, roll-up, buy my API software, expose some APIs, to gain fame and fortune just like Apple and Google API What is sold What happens in practice
- 16. Mobile Data ($275B) Fixed Data ($275B) Mobile Voice ($615B) Fixed Voice ($325B) 0-‐2% Regulated Services ($1.5T) Un-‐ regulated Services Threats to Revenue 5.5 to 9% 3 to 4% 0 to 2% -‐5 to -‐7% ($650B) 1-‐3.3% 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 There’s just 2 things we need to focus on
- 18. Make Telecoms an Essential Spice for every Business Recipe
- 19. Do more VAS!
- 20. “Most men would rather deny a hard truth than face it.”
- 21. 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.
- 22. Defining what is meant by Telecom App Developer Revenue Product Internal Telco Developers Partner Developers Telecom App Developers Mobile App Developers Long Tail Developers
- 23. This Is A More Accurate Representation Revenue Product Internal Telco Developers Partner Developers Telecom App Developers Mobile App Developers Long Tail Developers
- 24. What do we mean by Telecom App Developer? Hardcore Telco Software Infrastructure (10ks) Developers that recognize they build telecom apps IT/Web Programmers building on FOSS, telecom app platforms and telecom APIs (1Ms) ‘Cut and Paste’ web developers using web-scripting and graphical tools on app platforms (10Ms) All based on IT / Web Technologies and Development Principles today
- 25. TADS is about Building an Ecosystem Hardcore Telco Software Infrastructure (10ks) Developers that recognize they build telecom apps IT/Web Programmers building on FOSS, telecom app platforms and telecom APIs (1Ms) ‘Cut and Paste’ web developers using web-scripting and graphical tools on app platforms (10Ms) tomorrow All based on IT / Web Technologies and Development Principles
- 26. 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 Industry-wide (Publicity) Best Practices TAD Manifesto
- 27. For more details: http://alanquayle.com/category/startups-to-watch/ Examples of Telecom App Dev happening today!
- 29. Communications is Core to On-demand Services
- 30. Go-to-Market is Critical, and a Critical Telco Value Customers Selling Services Selling Capabilities Internal Partners External Telco Telco GTM
- 31. ECOSYSTEM
- 32. SERVICES