Skip to main content

Why Telecom Network APIs are a Catalyst for Growth

When you think about sources of business or technology innovation, does the current telecom or cable TV industry players come to mind? Yes, it's a rhetorical question, we already know the answer.

Most broadband service providers are not recognized for new business ideas or product leadership. That's why they typically rely upon outside vendors to create the concepts for new original sources of revenue. That's particularly true for software-based innovations.

The telecom network Application Programming Interface (API) is the conduit for that creativity. Telecom APIs are not a revenue item in and of themselves, but rather table stakes needed to continue growth of the $1 trillion telecom services market.

Network operators in this huge market will benefit when opening up their networks to others through Telecom APIs, as they are delivering revenues of well over $100 billion per year.

Telecom service provider monetization comes through increased usage of the service, and supporting APIs can create an innovative ecosystem of independent software developers that in turn drives new business development.

Service providers want to monetize the innovation of other more creative companies in multiple ways, which vary according to the types of APIs and applications.

ABI Research believes that the most effective monetization from APIs is to offer a variety of data plans and innovative services that will suit different subscribers, by an overall data plan and targeted bundles of service offerings.

In addition, Telecom APIs provide access to reporting and billing facilities for applications to respond to network conditions and subscriber data plans. The access gained with the API improves performance and customer satisfaction, and most importantly, gets the creative over-the-top (OTT) providers working with legacy network operators.

"Operators are continuously looking to gain a competitive edge and at the same time avoid losing revenue to low-cost OTT applications. Telecom APIs help operators build a sustainable moat which draw OTTs into a cooperative position, open new markets and to generate extra revenue from existing customers," said Sabir Rafiq, research analyst at ABI Research.

Infrastructure vendors -- such as Ericsson and Nokia -- are working with network operators to develop APIs for monetization, optimization, new business models, increase efficiency and lower costs.

ABI believes that it's important for network operators to consider the bigger picture of APIs, as this is a long-term way of growing their businesses, and not just a one-time fix to the current quarter's revenue shortfall.

Popular posts from this blog

AI Semiconductor Revenue will Reach $119.4B

The Chief Information Officer (CIO) and/or the Chief Technology Officer (CTO) will guide Generative AI initiatives within the large enterprise C-Suite. They may already have the technical expertise and experience to understand the capabilities and limitations of Gen AI. They also have the authority and budget to make the necessary investments in infrastructure and talent to support Gen AI initiatives. Enterprise AI infrastructure is proven to be expensive to build, operate and maintain. That's why public cloud service provider solutions are often used for new AI use cases. AI Semiconductor Market Development Semiconductors designed to execute Artificial Intelligence (AI) workloads will represent a $53.4 billion revenue opportunity for the global semiconductor industry in 2023, an increase of 20.9 percent from 2022, according to the latest worldwide market study by Gartner. "The developments in generative AI and the increasing use of a wide range AI-based applications in data c

Demand for Quantum Computing as a Service

The enterprise demand for quantum computing is still in its early stages, growing slowly. As the technology becomes more usable, we may see demand evolve beyond scientific applications. The global quantum computing market is forecast to grow from $1.1 billion in 2022 to $7.6 billion in 2027, according to the latest worldwide market study by International Data Corporation (IDC). That's a five-year compound annual growth rate (CAGR) of 48.1 percent. The forecast includes base Quantum Computing as a Service, as well as enabling and adjacent Quantum Computing as a Service. However, this updated forecast is considerably lower than IDC's previous quantum computing forecast, which was published in 2021, due to lower demand globally. Quantum Computing Market Development In the interim, customer spend for quantum computing has been negatively impacted by several factors, including: slower than expected advances in quantum hardware development, which have delayed potential return on inve

Industrial Cloud Computing Apps Gain Momentum

In the manufacturing industry, cloud computing can help leaders improve their production efficiency by providing them with real-time data about their operations. This has gained the attention of the C-suite. Total forecast Industrial Cloud platform revenue in manufacturing will surpass $300 billion by 2033 with a CAGR of 22.57 percent, driven by solution providers enhancing platform interoperability while expanding partner ecosystems for application development. ABI Research found the cloud computing manufacturing market will grow over the next decade due to the adoption of new architectural frameworks that enhance data extraction and interoperability for manufacturers looking to maximize utility from their data. Industrial Cloud Computing Market Development "Historically, manufacturers have built out their infrastructure to include expensive data housing in the form of on-premises servers. The large initial upfront cost of purchasing, setting up, and maintaining these servers is