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Telecom Network APIs 2012 - 2016

Telecom Network APIs capitalize on existing network infrastructure to create a vast array of business opportunities for carriers worldwide. In essence, these APIs allow carriers to disseminate a wealth of internal information or resources to third parties. This could entail everything from network QoS for video service delivery to Subscriber Data Management (SDM) for advertising and profiling, the goal being to enable third party developers to offer services in return for revenues.

Today nearly 9 % of all Web and 5 % of all mobile applications utilize APIs. This figure is expected to increase to over 68 % by the end of 2016, driven by growing investments from the vendor, developer and the carrier community. As a consequence, the Telecom Network APIs market is expected to account for nearly $ 75 Billion in global revenues worldwide by 2016, growing at a CAGR of 37 % between 2012 and 2016.

This report provides an in-depth assessment of the global Telecom Network APIs market, including business models, value chain analysis, operator and vendor strategies and a quantitative assessment of the industry from 2012 till 2016.

This report addresses the following key topics:

  • The Business Case for Telecom Network APIs: An assessment of the business case for Telecom 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.
  • Value Chain and Telco Operator APIs Usage: An analysis of the value chain of telecom 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.
  • Network Operator, Application Provider & Vendor Strategies: An analysis of how operators, application providers and vendors will position themselves to capitalize on network APIs
  • Telecom and Non-Telecom Network API Analysis: Evaluation of major Telecom network, Non-Telecom Network APIs, API “Mashups” globally, 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 2012 to 2016
Key Findings:
  • The Mobile Networks API market will grow at a CAGR of 37 % between 2012 and 2016, eventually accounting for $ 75 Billion in global revenue by the end of 2016
  • In terms of regional revenue split, the North America and Western Europe region will remain to be the largest market segments by the end of 2016, while the Asia Pacific and Middle East & Africa regions will see the healthiest growth rates over the next four years.
  • In terms of individual API categories, the Subscriber Data Management (SDM) category will witness the fastest growth rate and will eventually account for $ 6.8 Billion in global revenue by the end of 2016
  • The average volume of API transactions for a Tier 1 wireless carrier will significantly increment over the next four years eventually reaching 94 Billion transactions a month on average.
Companies in Report:
  • Acision
  • Alcatel Lucent
  • Amazon
  • America Movil
  • Apigee
  • AT&T
  • BBC
  • eBay
  • Ebay
  • Flickr
  • FONfinder
  • France Telecom (Orange)
  • GenSMS
  • Gilt Groupe
  • Google
  • GSMA
  • Korea Telecom
  • Last.fm
  • LOC-AID
  • Microsoft
  • Mox eHealth
  • Netflix
  • Pearson
  • Placecast
  • Rogers
  • Salesforece.com inc
  • Samsung
  • Shopping.com
  • Sprint
  • Telefonica
  • T-Mobile
  • Twilio
  • Twitter
  • UnboundID
  • Verizon Wireless
  • Vodafone
  • Vodafone
  • Wholesale Application Community
  • Yahoo
  • YouTube
Target Audience:
  • API Aggregators
  • Investment Firms
  • Application Developers
  • Mobile Device Vendors
  • Mobile Network Carriers
  • Service Bureau Companies
  • Wireless Infrastructure Vendors
  • Telecom Managed Service Providers


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 An Overview of Telco Network APIs
2.1 Defining Network APIs
2.2 Why are Carriers Adopting Telco Network APIs
2.3 Telco Network API Categories
2.3.1 SMS and RCS-E
2.3.2 MMS
2.3.3 Location
2.3.4 Payments
2.3.5 Voice/Speech
2.3.6 M2M
2.3.7 SDM/Identity Management
2.4 Telco Network API Business Models
2.4.1 Two-Sided Business Model
2.4.2 Exposing APIs to Developers
2.4.3 Web Mashups
2.5 What % of Applications use APIs
2.6 The Revenue Potential of APIs
2.7 Telco Network API Usage by Industry Segment
2.8 Telco Network API Value Chain
2.8.1 Visualizing the Value Chain
2.8.2 How the Value Chain will Evolve Over Time
2.8.3 API Transaction Value Split Among Players
2.9 Cost for Different API Transactions
2.10 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 Non Telco Network APIs and Mashups
4.1 Non Telco Network APIs
4.1.1 Twitter
4.1.2 Netflix API
4.1.3 Google Maps
4.1.4 Facebook
4.1.5 Youtube
4.1.6 Flickr
4.1.7 Ebay
4.1.8 Last.fm
4.1.9 Amazon Web Services
4.1.10 Bing Maps
4.1.11 Yahoo Web Search API
4.1.12 Shopping.com
4.1.13 Salesforce.com
4.2 Mashups
4.2.1 BBC News on Mobile
4.2.2 GenSMS emailSMS
4.2.3 Foursquare
4.2.4 Amazon SNS and Nexmo
4.2.5 Triage.me
4.2.6 MappyHealth
4.2.7 Lunchflock
4.2.8 Mobile Time Tracking
4.2.9 Fitsquare
4.2.10 GeoSMS
4.2.11 FONFinder
4.2.12 Pound Docs
4.2.13 140Call
4.2.14 Salesforce SMS
5 Carrier, Application Provider & Vendor Strategies
5.1 Carrier Positioning in the LTE Era
5.1.1 Increasing API Investments
5.1.2 The Rise of SDM
5.1.3 Working Towards Standardisation: The GSMA OneAPI
5.1.4 Carrier Attitudes towards APIs in the U.S Versus Asia Pacific and Western Europe
5.2 Carrier API Programs Worldwide
5.2.1 AT&T Mobility
5.2.2 Verizon Wireless
5.2.3 Vodafone
5.2.4 France Telecom
5.2.5 Telefonica
5.3 Should Carriers Open Network APIs to OTT Service Providers
5.3.1 Allowing OTT Providers to Manage Applications
5.3.2 Carriers Lack the Innovative Skills to Capitalize on APIs Alone
5.4 Developer Attitudes Towards API Adoption
5.4.1 A Critical Asset to Developers
5.4.2 Stimulating the Growth of API Releases
5.4.3 Working Alongside Carrier Programs
5.4.4 Developer Preferences: Google vs Carriers
5.5 Vendor Strategies: Creating a Unique Role within the Value Chain
5.5.1 Positioning as Enablers in the Value Chain
5.5.2 Moving Away from a Box/Product Supplier Strategy
5.5.3 Moving Away from a Box/Product Supplier Strategy
5.6 Company Profiles
5.6.1 Alcatel Lucent
5.6.2 UnboundID
5.6.3 Twilio
5.6.4 LOC-AID
5.6.5 Placecast
5.6.6 Samsung
5.6.7 AT&T Mobility
5.6.8 Apigee
6 Market Analysis
6.1 Telco Network APIs Revenue 2012 - 2016
6.2 Telco Network APIs Revenue by API Category 2012 - 2016
6.2.1 Messaging API Revenues
6.2.2 LBS API Revenues
6.2.3 SDM API Revenues
6.2.4 Payment API Revenues
6.2.5 Other API Revenues
6.3 Telco Network APIs Revenue by Region 2012 - 2016
6.3.1 Asia Pacific
6.3.2 Eastern Europe
6.3.3 Latin & Central America
6.3.4 Middle East & Africa
6.3.5 North America
6.3.6 Western Europe
List of Figures
Figure 1: Wireless Carrier Assets
Figure 2: The Telco Network APIs Value Chain
Figure 3: Value Split Among Aggregators, Carriers and Web Enterprises for API Transactions: 2012 - 2016
Figure 4: API Transaction Costs (US Cents) 2012 - 2016
Figure 5: Volume of API Transactions for a Tier 1 Carrier (Billions per Month): 2012 - 2016
Figure 6: GSMA OneAPI: Benefits to Stakeholders
Figure 7: Verizon Wireless APIs
Figure 8: Verizon Wireless APIs
Figure 9: France Telecom (Orange) APIs
Figure 10: Telefonica APIs
Figure 11: UnboundID’s Portfolio of Services
Figure 12: Twilio’s Portfolio of Services
Figure 13: LOC-AIDs’s Exchange Server Architecture
Figure 14: Placecast’s ShopAlerts Solution
Figure 15: Apigee’s Portfolio of Services
Figure 16: Telco Network APIs Revenue (USD Billions) 2012 - 2016
Figure 17: Telco Network APIs Revenue (USD Billions) by API Category 2012 - 2016
Figure 18: SMS APIs Revenue (USD Billions) 2012 - 2016
Figure 19: LBS APIs Revenue (USD Billions) 2012 - 2016
Figure 20: SDM APIs Revenue (USD Billions) 2012 - 2016
Figure 21: Payment APIs Revenue (USD Billions) 2012 - 2016
Figure 22: APIs Revenue for Other Categories (USD Billions) 2012 - 2016
Figure 23: Telco Network APIs Revenue (USD Billions) by Region 2012 - 2016
Figure 24: Telco Network APIs Revenue (USD Billions) in the Asia Pacific Region 2012 - 2016
Figure 25: Telco Network APIs Revenue (USD Billions) in the Eastern Europe Region 2012 - 2016
Figure 26: Telco Network APIs Revenue (USD Billions) in the Latin & Central America Region 2012 - 2016
Figure 27: Telco Network APIs Revenue (USD Billions) in the Middle East & Africa Region 2012 - 2016
Figure 28: Telco Network APIs Revenue (USD Billions) in the North America Region 2012 - 2016
Figure 29: Telco Network APIs Revenue (USD Billions) in the Western Europe Region 2012 - 2016

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