Telcos, Lean and The API Economy

Telcos, Lean and The API Economy

Revenue growth for telcos no longer flows from copper networks, but from applications. The new territory where, in theory, Telcos have two key advantages: 1. Cloud applications require Telco-provided broadband services, and 2. The complexities of user provisioning, end-user support and subscription billing are core competencies of telcos but (yet) not of many software developers.

Further, Telco products are typically based on 3rd party platforms where the Telcos adds value via basic integration and the aforementioned billing, provisioning and support.

So in theory Telcos are well positioned in the Mobile and Cloud-based API economy. Mobile + Cloud + APIs allow carriers to intermediate internal information for 3rd party software providers, such as network QoS for video service delivery or Subscriber Data Management (SDM) for advertising and profiling. Plus, provide much needed glue to deliver a seamless user experience.

Telcos that can productize this integration and mediation are in an enviable position. They

  • strengthen their own customer relationships though broader, stickier deployments and
  • create new revenue streams by enabling third party developers to monetize their software.

In a recent report Mind Commerce sized the API marketplace as a $150B + opportunity for Telcos, noting that already 25% of all web and 15% of all mobile applications utilize APIs – figures expected to nearly triple over the next 5 years.

Capitalizing on this opportunity means Telcos will need:

  • a Cloud and Mobile strategy that identifies the highest impact portfolio applications and
  • to develop competence in productize their own integration software.

Kickstart Product Planning Workshop

At the Lean Startup conference in San Francisco December 8-11, Modus Create is delivering a workshop that applies Lean Startup principles to mobile and cloud portfolio strategy. This will include a free copy of our Kickstart product planning guide that puts in place a framework that:

  • puts the customer experience first
  • creates a sense of urgency to gain traction in an era where market share is won or lost far more rapidly than with locked in carrier services
  • builds flexibility into a cloud/mobile roadmap
  • creates an environment where healthy constraints drive priorities and decisions

If you’re in the Bay Area, come on out!

If not, download a PDF version, or drop us a line and we’ll send you a fabulous color copy like the one we’re giving out in Frisco.

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