Telecom API Market Outlook and Forecasts 2017 - 2022

Published: April 2017   Pages: 172
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The telecommunications Application Programming Interface (API) marketplace has significantly matured in recent years. While some expectations have not yet been realized, such as carrier branded application stores, B2B revenue to third-parties such as OTT providers continues to provide wholesale services revenue growth for traditional Communication Service Providers (CSP). However, much of Telecom API opportunity has been limited to larger carriers in developed countries. There remains a lucrative opportunity for both smaller CSPs and larger carriers in developing countries.

This latest study builds upon five years of Telecom API research from Mind Commerce. During this period, we have seen network operators leverage APIs to derive wholesale transaction revenue as well as communication-enabled application revenue. We have also seen a significant amount of use for internal carrier services such as customer relationship management. Incremental growth opportunities for CSPs include a variety of services and application support such as Robo Call Blocking (associated with Do Not Call Registry and Telephone Consumer Protection Act compliance in the United States) as well as Unwanted Call blocking services in general.

However, Mind Commerce sees a general flattening of the growth curve for traditional consumer centric and handset oriented services supported by Telecom APIs. Longer term, Telecom API growth will come from new networks such as those cellular and non-cellular WANs supporting the Internet of Things (IoT). Mind Commerce sees communication-enabled application revenue plateauing while IoT network-support revenue becoming a more substantial revenue component for Telecom APIs by 2025.

Also see: IoT API Use Cases, Solutions, Market Outlook and Forecasts 2017 - 2022

Telecom API Market Outlook and Forecasts 2017 – 2022 provides an in-depth assessment of the global Telecom API market, including business models, value chain analysis, operator strategies and a quantitative assessment of the industry from 2017 to 2022. The report also addresses other important areas within Programmable Telecom.  All purchases of Mind Commerce reports includes time with an expert analyst who will help you link key findings in the report to the business issues you're addressing. This needs to be used within three months of purchasing the report.

Sample Customer Feedback about the Report:

" The Mind Commerce Telecom API reports have been helpful to us, offering a unique view of the market forecast.  Instead of providing a single revenue forecast for the API market, they have created a model that provides us (Ribbon Communications) with enhanced visibility into the value of our Kandy Platform (CPaaS/UCaaS). The model examines the ecosystem surrounding APIs and then distributes the forecast across the entire ecosystem including owners/aggregators, web/enterprises, and carriers. The model also provides guidance on how respective ecosystems change for various vertical markets and applications. "   

Michael Cooper, Director, Analyst Relations and Competitive Intelligence, Ribbon Communications

Select Report Findings:

  • Non-IoT Telecom API revenue seen leveling off by 2022
  • Telecom API revenue is forecast to reach $207 billion globally by 2022
  • IoT to significantly add to Telecom API revenue for wireless carriers by 2025
  • Unwanted Call blocking a developing area for carriers to leverage Telecom APIs
  • OTT providers continue to lead the way in terms of wholesale revenue for carriers
  • Enterprise to represent an important customer base as they leverage their own data

Companies in Report:

  • Amdocs
  • Apidaze
  • Apifonica
  • Aspect Software
  • BICS
  • CA Technologies
  • Cisco
  • CLX Communications
  • Ericsson
  • Fortumo
  • Google
  • hSenid Mobile
  • Huawei
  • LocationSmart
  • Mashape
  • Mulesoft
  • Nokia Networks
  • Oracle
  • Persistent Systems
  • TeleStax
  • Twilio
  • Tyntec
  • Vidyo
  • Vonage

Target Audience:

  • Telecom API providers
  • Application developers
  • Data services companies
  • Mobile network operators
  • Integrated ICT service providers
  • Enterprise companies of all types

Table of Contents:

1 Introduction
1.1 Executive Summary
1.2 Topics Covered
1.3 Key Findings
1.4 Target Audience
2 Telecom API Overview
2.1 Defining Telecom APIs
2.2 Business Drivers for CSPs to Leverage APIs
2.2.1 Need for New Revenue Sources
2.2.2 Need for Collaboration with Development Community
2.2.3 B2B Services and Asymmetric Business Models
2.2.4 Emerging Need for IoT Mediation
2.3 Telecom API Categories
2.3.1 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 Machine-to-Machine (M2M)
2.3.9 SDM/Identity Management
2.3.10 Subscriber Profile
2.3.11 Quality of Service (QoS)
2.3.12 Identity and Single Sign-on
2.3.13 Content Delivery
2.3.14 Hosted Unified Communications
2.3.15 Directory
2.3.16 Number Provisioning
2.3.17 Unstructured Supplementary Service Data (USSD)
2.3.18 Billing of Non-Digital Goods
2.3.19 Advertising
2.3.20 Enterprise Collaboration
2.3.21 IVR/Voice Store
2.4 Telecom API Business Models
2.4.1 Three Business Model Types Model One Model Two Model Three
2.4.2 The Asymmetric Business Model
2.4.3 Exposing APIs to Developers
2.4.4 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 Total Cost of Ownership
2.6.2 Open APIs
2.6.3 Configurability and Customization
2.7 Applications that use APIs
2.8 Telecom API Revenue Potential
2.8.1 Standalone API Revenue vs. API enabled 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 API Usage by Industry Segment
2.10 Telecom API Value Chain
2.10.1 Telecom API Value Chain
2.10.2 How the Value Chain Evolves
2.10.3 API Transaction Value Split among Players
2.11 API Transaction Cost by Type
2.12 Volume of API Transactions
3 API Aggregation
3.1 Role of API Aggregators
3.2 Total Cost of Operation with API 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 API Aggregator Example: LocationSmart
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 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 Marketplace Companies
4.2.1 Mashape
4.2.2 Mulesoft
4.2.3 TeleStax
4.3 Telecom API Ecosystem Vendors
4.3.1 ICT Infrastructure Providers Ericsson GENBAND Huawei Nokia Networks
4.3.2 Companies Acquiring Telecom API Capabilities via M&A Amdocs Aspect Software BICS CA Technologies Cisco Google Oracle Persistent Systems Vonage
4.3.3 Companies Independently Built API Capabilities Apidaze Apifonica CLX Communications Fortumo hSenid Mobile Tyntec Twilio Vidyo
4.4 Telecom Application Development
4.4.1 Communications-enabled App Marketplace Market Opportunities and Challenges Marketplace Facilitators
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 Data Privacy
5.2.3 Interoperability
6 Communication Service Provider Telecom API Strategies
6.1 Carrier Market Strategy and Positioning
6.1.1 API Investment Stabilization
6.1.2 Carriers, APIs, and OTT
6.1.3 Leveraging Subscriber Data and APIs
6.1.4 Telecom API Standards
6.1.5 Telecom APIs and Enterprise
6.2 Select Network Operator API Programs
6.2.1 AT&T
6.2.2 Verizon Wireless
6.2.3 Vodafone
6.2.4 France Telecom (Orange)
6.2.5 Telefonica
6.3 Carrier Focus on Internal Telecom API Usage
6.3.1 The Case for Internal Usage
6.3.2 Internal Telecom API Use Cases
6.4 Carriers and OTT Service Providers
6.4.1 Allowing OTT Providers to Manage Applications
6.4.2 Carriers Lack the Innovative Skills to Capitalize on APIs Alone
6.5 Carriers and Value-added Services
6.5.1 Role and Importance of VAS
6.5.2 The Case for Carrier Communication-enabled VAS
6.5.3 Challenges and Opportunities for Carriers in VAS
7 API Enabled Application Developer Strategies
7.1 Treating Telecom APIs as a Critical Developer Asset
7.2 Judicious Choice of API Releases
7.3 Working alongside Carrier Programs
7.4 Developer Preferences: OTT Service Providers vs Carriers
8 Telecom API Vendor Strategies
8.1 Positioning as Enablers in the Value Chain
8.2 Moving Away from a Box/Product Supplier Strategy
9 Market Analysis and Forecasts
9.1 Telecom API Revenue 2017 - 2022
9.2 Telecom API Revenue by Category 2017 – 2022
9.2.1 Messaging API Revenues
9.2.2 LBS API Revenues
9.2.3 SDM API Revenues
9.2.4 Payment API Revenues
9.2.5 IoT API Revenues
9.2.6 Other API Revenues
9.3 Telecom API Revenue by Region 2017 - 2022
9.3.1 Asia Pacific
9.3.2 Eastern Europe
9.3.3 Latin & Central America
9.3.4 Middle East & Africa
9.3.5 North America
9.3.6 Western Europe
10 Technology and Market Drivers for Future API Market Growth
10.1 Service Oriented Architecture
10.2 Software Defined Networks
10.3 Virtualization
10.3.1 Network Function Virtualization
10.3.2 Virtualization beyond Network Functions
10.4 Internet of Things
10.4.1 IoT Definition
10.4.2 IoT Technologies
10.4.3 IoT Applications
10.4.4 IoT Solutions
10.4.5 IoT, DaaS, and APIs
10.5 IoT WANs and Telecom APIs
10.5.1 Cellular IoT WAN
10.5.2 Non-Cellular IoT WAN
10.5.1 Cellular vs. Non-Cellular IoT WAN Telecom API Needs
10.5.2 Telecom APIs for IoT a $20B Opportunity by 2025
11 Conclusions and Recommendation
11.1 Overall Telecom API Outlook
12 Appendix
12.1 Telecom API Definitions
12.2 More on Telecom APIs and DaaS
12.2.1 Tiered Data Focus
12.2.2 Value-based Pricing
12.2.3 Open Development Environment
12.2.4 Specific Strategies Service Ecosystem and Platforms Bringing to Together Multiple Sources for Mash-ups Developing Value-added Services as Proof Points Open Access to all Entities including Competitors Prepare for Big Opportunities with the Internet of Things (IoT)
12.3 Monetizing IoT APIs
12.3.1 IoT API Business Models
12.3.2 Peer Support of Platforms, Devices, and Gateways
12.3.3 Supporting the API Developer Community
12.3.4 Data and Database Transactions


Figure 1: Communication Service Provider Assets
Figure 2: Next Generation CSP Assets driving Telecom API Usage
Figure 3: RCS and Telecom API Integration
Figure 4: Enterprise Dashboard
Figure 5: Enterprise Dashboard App Example
Figure 6: Telecom API Value Chain
Figure 7: API Transaction Value by Type
Figure 8: Volume of API Transactions for a Tier 1 Carrier 2017 - 2022
Figure 9: Cloud Services and APIs
Figure 10: Programmable Telecom Vendor Services Comparative Segmentation
Figure 11: GSMA OneAPI: Benefits to Stakeholders
Figure 12: AT&T Wireless API Catalog
Figure 13: Verizon Wireless API Program
Figure 14: France Telecom (Orange) API Program
Figure 15: Telefonica API Program
Figure 16: Carrier Internal Use of Telecom APIs
Figure 17: Telecom API Revenue 2017 – 2022
Figure 18: Telecom API Revenue by Category 2017 – 2022
Figure 19: Messaging APIs Revenue 2017 – 2022
Figure 20: LBS APIs Revenue 2017 – 2022
Figure 21: SDM APIs Revenue 2017 – 2022
Figure 22: Payment APIs Revenue 2017 – 2022
Figure 23: IoT API Revenue 2017 – 2022
Figure 24: API Revenue for Other Categories 2017 – 2022
Figure 25: Telecom API Revenue by Region 2017 – 2022
Figure 26: Telecom API Revenue Asia Pacific 2017 – 2022
Figure 27: Telecom API Revenue Eastern Europe 2017 – 2022
Figure 28: Telecom API Revenue Latin & Central America 2017 – 2022
Figure 29: Telecom API Revenue Middle East and Africa 2017 – 2022
Figure 30: Telecom API Revenue North America 2017 – 2022
Figure 31: Telecom API Revenue Western Europe 2017 – 2022
Figure 32: Services Oriented Architecture
Figure 33: Growth of Connected Devices
Figure 34: IoT and Future Telecom API Topology
Figure 35: 3GPP IoT Proposals for LTE, Narrowband and 5G Network
Figure 36: LoRaWAN Network Architecture
Figure 37: Cellular vs. Non-Cellular IoT WAN Comparison
Figure 38: Different Data Types and Functions in DaaS
Figure 39: Ecosystem and Platform Model
Figure 40: Telecom API and Internet of Things Mediation
Figure 41: DaaS and IoT Mediation


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