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Telecom Network API Marketplace: Strategy, Ecosystem, Players and Forecasts 2015 - 2020

The global application development community is becoming increasingly aware of Telecom Application Programming Interface (API) as a means of accessing data for a variety of communications-enabled applications.   Telecom Network APIs capitalize on existing network infrastructure and platforms to facilitate many new business opportunities for global Communication Service Providers (CSP) to offer Business-to-Business (B2B) services in a Data as a Service (DaaS) basis. 

Enterprise companies across various industry verticals are also awakening to the availability and commercial value of CSP data including everything from network QoS for video service delivery to Subscriber Data Management (SDM) for advertising, profiling, and identity management.  CSPs offer data over Telecom APIs in a DaaS B2B2B and B2B2C model to data aggregators as well as direct to enterprise customers and Over-the-Top (OTT) players. 

Telecom Network API Marketplace: Strategy, Ecosystem, Players and Forecasts 2015 - 2020 provides an in-depth assessment of the global Telecom Network API market, including business models, business case, best practices, value chain analysis, operator and vendor strategies, vision for the future of telecom data, and a quantitative assessment of the industry from 2015 to 2020.

Report coverage includes:

  • The Business Case for Telecom Network APIs: An assessment of the business case for Telco Network APIs
  • API Aggregation: The role of API Aggregators, the total cost usage for APIs with aggregation and a review of aggregator API usage by category.
  • Competitive Issues: Competitive issues within the Telecom API market such as reduction in TCO, open APIs and ease of configuration.
  • The Value Chain of Network Operator APIs Usage: An analysis of the value chain of network operator API usage for services including an assessment of revenue across participants in the value chain from end users, developers, aggregators to the API owners, and how this economic model will change over time.
  • Operator, Application Provider and Vendor Strategies: An analysis of how operators, application providers and vendors will position themselves to capitalize on network APIs
  • Analysis of Telecom and Non-Telecom Network APIs: Includes major telecom network and non-telecom network APIs and mashups throughout the globe, and an assessment of which APIs will lead the market in the future.
  • Market Analysis and Forecasts: A global and regional assessment of the market size and forecasts for the telecom network API market from 2015 to 2020
  • Analysis of Future Technology and API Market Drivers: Service Oriented Architecture (SOA), Virtualization, Software Defined Networks (SDN), and Internet of Things (IoT) are evaluated as drivers for API marketplace growth

Target Audience:

  • API Aggregators
  • Investment Firms
  • Application Developers
  • Mobile Device Vendors
  • Mobile Network Carriers
  • Service Bureau Companies
  • Wireless Infrastructure Vendors
  • Telecom Managed Service Providers
  • Major enterprise and businesses of all types

Report Benefits:

  • Telecom API marketplace forecasts 2015 – 2020
  • Insights from Telecom API use cases and business cases
  • Understand the Telecom and Enterprise API marketplace
  • Understand key API technologies and interdependencies
  • Identify advantages of internal Telecom API usage to carriers
  • Identify the long-term growth drivers for the API marketplace
  • Understand how the API marketplace relates to the Cloud and DaaS
  • Understand the untapped potential for carrier Telecom API enabled VAS

General Methodology

Mind Commerce Publishing's research methodology encompasses input from a wide variety of sources.

We rely heavily upon our Subject Matter Experts (SME) in terms of their market knowledge, unique perspective, and vision. We utilize SME industry contacts as well as previous customers and participants in our market surveys and interactive interviews.

In addition, we rely upon our extensive internal database, which contains modeling, qualitative analysis, and quantitative data. We review secondary sources and compare to our primary sources to update previous findings (for prior version reports) and/or compile baseline information for technology and market modeling.

We share preliminary models with industry contacts (select previous clients, experts, and thought leaders) to verify the veracity of initial modeling. Prior to final report production (analysis, findings, and conclusions), we engage in an internal review with internal SMEs as well as cross-expertise, senior staff members to challenge results.

We believe that forecasts should be prepared as part of an integrated process which involves both quantitative as well as qualitative factors. We follow the following 3-step process for forecasting.

Forecasting Methodology

Step 1 - Forecasts Input: The inputs for the present and historical revenues are derived from industry players. Financial and other quantitative data for individual sub-market categories are derived from original research and tested with interviews with major industry constituents.

Step 2 - Forecasting of Future Years: Mind Commerce extends forecasts based on a variety of factors including demand drivers as well as supply side data. Key success factors and assumptions are considered.

Step 3 - Validation of Data: The final step is to validate projections, which is accomplished in consultation with both internal and external industry experts, including both topic and regional experts. Adjustments are made to the forecasts based on factors identified throughout this process.

1 Introduction
1.1 Executive Summary
1.2 Topics Covered
1.3 Key Findings
1.4 Target Audience
1.5 Companies Mentioned
2 Telecom Network API Overview
2.1 Defining Network APIs
2.2 Why Carriers are Adopting Telecom Network APIs
2.2.1 Need for New Revenue Sources
2.2.2 B2B Services and Asymmetric Business Models
2.3 Telecom Network API Categories
2.3.1 Web Real-time Communications (WebRTC)
2.3.2 SMS and RCS-E
2.3.3 Presence
2.3.4 MMS
2.3.5 Location
2.3.6 Payments
2.3.7 Voice/Speech
2.3.8 Voice Control
2.3.9 Multimedia Voice Control
2.3.10 M2M
2.3.11 SDM/Identity Management
2.3.12 Subscriber Profile
2.3.13 QoS
2.3.14 ID/SSO
2.3.15 Content Delivery
2.3.16 Hosted UC
2.3.17 Directory
2.3.18 Number Provisioning
2.3.19 USSD
2.3.20 Billing of Non-Digital Goods
2.3.21 Advertising
2.3.22 Collaboration
2.3.23 IVR/Voice Store
2.4 Telecom Network API Business Models
2.4.1 Two-Sided Business Model
2.4.2 Exposing APIs to Developers
2.4.3 Web Mash-ups
2.5 Segmentation
2.5.1 Users by Segment
2.5.2 Workforce Management
2.6 Competitive Issues
2.6.1 Reduced TCO
2.6.2 Open APIs
2.6.3 Configurability
2.7 Percentage of Applications that use APIs
2.8 Telecom API Revenue Potential
2.8.1 Standalone API Revenue vs. Finished Goods Revenue
2.8.2 Telecom API-enabled Mobile VAS Applications
2.8.3 Carrier Focus on Telecom API’s for the Enterprise
2.9 Telecom Network API Usage by Industry Segment
2.10 Telecom Network API Value Chain
2.10.1 Telecom API Value Chain
2.10.2 How the Value Chain Evolve
2.10.3 API Transaction Value Split among Players
2.11 Cost for Different API Transactions
2.12 Volume of API Transactions
3 API Aggregation
3.1 The Role of API Aggregators
3.2 Total Cost Usage for APIs with Aggregators
3.2.1 Start-up Costs
3.2.2 Transaction Costs
3.2.3 Ongoing Maintenance/Support
3.2.4 Professional Services by Intermediaries
3.3 Aggregator API Usage by Category
3.3.1 An LBS Case Study: LOC-AID
3.3.2 Aggregation: Intersection of Two Big Needs
3.3.3 The Case for Other API Categories
3.3.4 Moving Towards New Business Models
4 Enterprise and Telecom API Marketplace
4.1 Data as a Service (DaaS)
4.1.1 Carrier Structured and Unstructured Data
4.1.2 Carrier Data Management in DaaS
4.1.3 Data Federation in the DaaS Ecosystem
4.2 API Market Makers
4.2.1 mashape
4.2.2 Mulesoft
4.3 Need for a New Type of Application Marketplace: CAM
4.3.1 Communications-enabled App Marketplace (CAM)
4.3.2 CAM Market Opportunities and Challenges
5 Telecom API Enabled App Use Cases
5.1 Monetization of Communications-enabled Apps
5.1.1 Direct API Revenue
5.1.2 Data Monetization
5.1.3 Cost Savings
5.1.4 Higher Usage
5.1.5 Churn Reduction
5.2 Use Case Issues
5.2.1 Security
5.2.2 Interoperability
6 Non-Telecom Network APIs and Mash-ups
6.1 Non-Telecom Network APIs
6.1.1 Twitter
6.1.2 Netflix API
6.1.3 Google Maps
6.1.4 Facebook
6.1.5 YouTube
6.1.6 Flickr
6.1.7 eBay
6.1.9 Amazon Web Services
6.1.10 Bing Maps
6.1.11 Yahoo Web Search API
6.2 Mash-ups
6.2.1 BBC News on Mobile
6.2.2 GenSMS emailSMS
6.2.3 Foursquare
6.2.4 Amazon SNS and Nexmo
6.2.6 MappyHealth
6.2.7 Lunchflock
6.2.8 Mobile Time Tracking
6.2.9 Fitsquare
6.2.10 GeoSMS
6.2.11 FONFinder
6.2.12 Pound Docs
6.2.13 140Call
6.2.14 Salesforce SMS
7 Carrier Strategies
7.1 Carrier Market Strategy and Positioning
7.1.1 Increasing API Investments
7.1.2 The Rise of SDM
7.1.3 Telecom API Standardization
7.1.4 Carrier Attitudes towards APIs: U.S vs. Asia Pacific and Western Europe
7.2 Carrier API Programs Worldwide
7.2.1 AT&T Mobility
7.2.2 Verizon Wireless
7.2.3 Vodafone
7.2.4 France Telecom
7.2.5 Telefonica
7.3 Carriers and Internal Telecom API Usage
7.3.1 The Case for Internal Usage
7.3.2 Internal Telecom API Use Cases
7.4 Carriers and OTT Service Providers
7.4.1 Allowing OTT Providers to Manage Applications
7.4.2 Carriers Lack the Innovative Skills to Capitalize on APIs Alone
7.5 Carriers and Value-added Services (VAS)
7.5.1 The Role and Importance of VAS
7.5.2 The Case for Carrier Communication-enabled VAS
7.5.3 Challenges and Opportunities for Carriers in VAS
8 API enabled App Developer Strategies
8.1 A Critical Asset to Developers
8.2 Stimulating the Growth of API Releases
8.3 Working alongside Carrier Programs
8.4 Developer Preferences: Google vs Carriers
9 Telecom API Vendor Strategies
9.1 Positioning as Enablers in the Value Chain
9.2 Moving Away from a Box/Product Supplier Strategy
9.3 Telecom API Companies and Solutions
9.3.1 Alcatel Lucent
9.3.2 UnboundID
9.3.3 Twilio
9.3.4 LOC-AID
9.3.5 Placecast
9.3.6 Samsung
9.3.7 AT&T Mobility
9.3.8 Apigee
9.3.9 2600 Hz
9.3.10 Callfire
9.3.11 Plivio
9.3.12 Tropo
9.3.13 Urban Airship
9.3.14 Voxeo
9.3.15 Competitive Differentiation
10 Market Analysis and Forecasts
10.1 Telecom Network API Revenue 2015 - 2020
10.2 Telecom Network APIs Revenue by API Category 2015 – 2020
10.2.1 Messaging API Revenues
10.2.2 LBS API Revenues
10.2.3 SDM API Revenues
10.2.4 Payment API Revenues
10.2.5 Internet of Things (IoT) API Revenues
10.2.6 Other API Revenues
10.3 Telecom API Revenue by Region 2015 - 2020
10.3.1 Asia Pacific
10.3.2 Eastern Europe
10.3.3 Latin & Central America
10.3.4 Middle East & Africa
10.3.5 North America
10.3.6 Western Europe
11 Technology and Market Drivers for Future API Market Growth
11.1 Service Oriented Architecture (SOA)
11.2 Software Defined Networks (SDN)
11.3 Virtualization
11.3.1 Network Function Virtualization (NFV)
11.3.2 Virtualization beyond Network Functions
11.4 The Internet of Things (IoT)
11.4.1 IoT Definition
11.4.2 IoT Technologies
11.4.3 IoT Applications
11.4.4 IoT Solutions
11.4.5 IoT, DaaS, and APIs (Telecom and Enterprise)
12 Expert Opinion: TeleStax
13 Expert Opinion: Twilio
14 Expert Opinion:
15 Appendix
15.1 Research Methodology
15.2 Telecom API Definitions
15.3 More on Telecom APIs and DaaS
15.3.1 Tiered Data Focus
15.3.2 Value-based Pricing
15.3.3 Open Development Environment
15.3.4 Specific Strategies Service Ecosystem and Platforms Bringing to Together Multiple Sources for Mash-ups Developing Value-added Services (VAS) as Proof Points Open Access to all Entities including Competitors Prepare for Big Opportunities with the Internet of Things (IoT)
Figure 1: Wireless Carrier Assets
Figure 2: Telecom API: Standalone vs. Finished Services
Figure 3: RCS and Telecom API Integration
Figure 4: RCS Revenue Forecast
Figure 5: Business vs. Consumer Telecom API Focus
Figure 6: Enterprise Dashboard
Figure 7: Enterprise Dashboard App Example
Figure 8: Telecom Network API Value Chain
Figure 9: Value Split among Aggregators, Carriers and Enterprise for API Transactions: 2012 - 2019
Figure 10: API Transaction Costs (US Cents) 2012 - 2019
Figure 11: Volume of API Transactions for a Tier 1 Carrier (Billions per Month): 2015 - 2020
Figure 12: Cloud Services and APIs
Figure 13: GSMA OneAPI: Benefits to Stakeholders
Figure 14: AT&T Wireless API Catalog
Figure 15: Verizon Wireless API Program
Figure 16: France Telecom (Orange) APIs
Figure 17: Telefonica APIs
Figure 18: Carrier Internal Use of Telecom APIs
Figure 19: UnboundID’s Portfolio of Services
Figure 20: Twilio’s Portfolio of Services
Figure 21: LOC-AID Exchange Server Architecture
Figure 22: Placecast’s ShopAlerts Solution
Figure 23: Apigee Portfolio of Services
Figure 24: Telecom API Revenue (USD Billions) 2015 - 2020
Figure 25: Telecom API Revenue (USD Billions) by API Category 2015 - 2020
Figure 26: Messaging APIs Revenue (USD Billions) 2015 - 2020
Figure 27: LBS APIs Revenue (USD Billions) 2015 - 2020
Figure 28: SDM APIs Revenue (USD Billions) 2015 - 2020
Figure 29: Payment APIs Revenue (USD Billions) 2015 - 2020
Figure 30: IoT API Revenue (USD Billions) 2015 - 2020
Figure 31: APIs Revenue for Other Categories (USD Billions) 2015 - 2020
Figure 32: Telecom API Revenue (USD Billions) by Region 2015 - 2020
Figure 33: Telecom API Revenue (USD Billions) Asia Pacific 2015 - 2020
Figure 34: Telecom API Revenue (USD Billions) Eastern Europe 2015 - 2020
Figure 35: Telecom API Revenue (USD Billions) Latin & Central America 2015 - 2020
Figure 36: Telecom API Revenue (USD Billions) Middle East & Africa 2015 - 2020
Figure 37: Telecom API Revenue (USD Billions) North America 2015 - 2020
Figure 38: Telecom API Revenue (USD Billions) Western Europe 2015 - 2020
Figure 39: Services Oriented Architecture
Figure 40: Growth of Connected Devices
Figure 41: IoT and Telecom API Topology
Figure 42: Telestax App Store Funnel
Figure 43: On-Premise vs. Twilio
Figure 44: and API Ecosystem
Figure 45: Different Data Types and Functions in DaaS
Figure 46: Ecosystem and Platform Model
Figure 47: Telecom API and Internet of Things Mediation
Figure 48: DaaS and IoT Mediation for Smartgrid

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