Mobile Network APIs

• Operators will understand the business and technical implications of open APIs and how this will affect their current and future business.
• Operators can make fully informed decisions about their API strategy and assess whether developer communities can help them address the long tail of consumer applications.
• Infrastructure vendors will be able to understand operator requirements and how to form their product roadmaps to address operator needs.
• Companies across the value chain will be able to assess the implications of mobile network APIs and how these will impact service delivery in mobile networks
• Valuable insight in early adopter strategies, in the form of operator and vendor case studies.
• Companies across the value chain will be able to assess the differences in vendor tactics and strategies and outline which vendor group has the best opportunities to survive in this competitive market
• Unique forward thinking analysis which outlines future open API usage, allowing operators to provide value added services and break free from the "dump-pipe" paradigm.

• Unique insight into open API strategies and technologies
• Detailed and independent assessment of Tier 1 operators and vendors’ strategies
• Extensive study and strategic analysis of attempts to address the long tail of consumer segments and previously unreachable market segments
• In-depth analysis and expert future outlook

C H A P T E R 1

E X E C U T I V E S U M M A R Y

Market overview

Operator initiatives

Figure 1.1: Operator openness

Vendors attempting to differentiate

Open API business models

Long tail of consumer applications

Figure 1.2: Revenue opportunities for long tail of consumer applications

Future outlook

Figure 1.3: Details of selected API initiatives

C H A P T E R 2

N E T W O R K A P I M A R K E T S T A T U S A N D O U T L O O K

Major changes in the mobile market and the role of network APIs

Mobile market overview

Figure 2.1: Mobile broadband revenues and traffic forecasts

Network APIs

Web companies moving in the mobile value chain

Device vendors becoming service providers

The app store phenomenon

Figure 2.2: App stores by mobile operators and handset vendors, 3Q09

The new value chain

Figure 2.3: Traditional vs. the new service-oriented mobile value chains

Why are operators opening APIs?

Avoid becoming a dumb pipe

Increase basic network usage

Increase subscriptions and reduce churn

Ability to create service tiering and subscription-based services

Bring experimentation into the operator service delivery model

Build future relationships

Operator strengths for network APIs

Brand strength and heritage

Billing relationship

Convenience and ease of use

Save time and costs

Target all developers

Security

Operator weaknesses in the new value chain

Lack of reliability

Lack of standards and common practice

Entering a crowded field

Little exclusivity

Inability to replicate the online model

Lack of demand for operator services

C H A P T E R 3

O P E R A T O R S T R A T E G I E S A N D P O S I T I O N I N G F O R M O B I L E N E T W O R K A P I S

Market overview

The need for open network APIs

Operator positioning

Figure 3.1: Operator differentiation and API involvement

Figure 3.2: Selected operator API initiatives

Operators in the application store business

Service mashups

Integrated strategy and two sided business models

Two-sided business models

Orange

Background

APIs

Figure 3.3: Orange Partner network APIs, 1Q09

Figure 3.4: Orange Partner API segmentation

API business models and strategy

SWOT analysis

Figure 3.5: Orange Partner SWOT analysis

Telefonica O2 Litmus

Background

APIs

API business models and strategy

Figure 3.6: O2 Litmus ecosystem

SWOT analysis

Figure 3.7: O2 Litmus SWOT analysis

Vodafone

Background

API initiatives

Betavine

Figure 3.8: Betavine API structure

Joint Innovation Lab and commercial APIs

API business models and strategy

SWOT analysis

Figure 3.9: Vodafone API strategy SWOT

AT&T’s devCentral and Apps Beta

Background

APIs

Figure 3.10: AT&T Apps Beta compatible handsets, Apr-09

API business models and strategy

SWOT analysis

Figure 3.11: SWOT analysis for AT&T’s open initiatives

Ribbit

Background

Figure 3.12: Ribbit features

APIs

Figure 3.13: Ribbit’s platform architecture

API business models and strategy

SWOT analysis

VI

Figure 3.14: Ribbit SWOT analysis

Verizon Wireless

Background

APIs and strategy

SWOT analysis

Figure 3.15: Verizon Wireless SWOT analysis

Telenor

Background

APIs and strategy

Figure 3.16: Telenor Content Provider Access APIs

Figure 3.17: Telenor CPA API charges, Jun-09

SWOT analysis

Figure 3.18: Telenor CPA APIs’ SWOT analysis

C H A P T E R 4

N E T W O R K A P I T E C H N O L O G Y E V O L U T I O N A N D S T A N D A R D S

Introduction

Figure 4.1: API technology historical overview

Past: telecoms grade protocols

Present: open systems and Web protocols

Future: interoperable service-aware networks

An overview of legacy technologies

CAMEL

CAMEL for prepaid roaming

Alternatives

JAIN

Parlay

The role of standardization in reshaping current technologies

API technologies

REST

SOAP

WSDL

Standards

GSMA OneAPI

Figure 4.2: Benefits of GSMA OneAPI

OMTP BONDI

JIL

Next-generation technologies

IMS/IPX

Service interoperability

IMS vs. open APIs

GSMA RCS

Figure 4.3: Rich Communication Suite (RCS), key participants, Jul-09

Figure 4.4: Simplified illustration of interoperable RCS services

WIMS 2.0

Figure 4.5: Benefits of Web 2.0 and IMS in WIMS 2.0

Open network APIs and next-generation networks

LTE/SAE

Background

VII

Figure 4.6: Simplified functional diagram of a LTE/SAE network

Open APIs and LTE/SAE

Service delivery evolution strategies

Figure 4.7: Service delivery evolution

C H A P T E R 5

T H E R A T I O N A L E B E H I N D D E P L O Y I N G N E T W O R K A P I S

API business models

App store enablers

Two-sided business models

Web services and mashups

Summary

Skepticism and revenue potential

Reducing costs

Long tail of consumer applications

Network API revenue models

APIs in the business environment

Operator app stores

Costs for app stores and developer communities

Figure 5.1: Value and associated costs of app stores

Competition from device vendors

Long tail of consumer applications

Figure 5.2: Long tail of consumer applications

Figure 5.3: Long tail revenues

Two-sided business models

Figure 5.4: Two-sided business model revenue sources

Figure 5.5: Operator service provisioning segmentation

Web mashups

Revenue models

Chargeable APIs

Figure 5.6: Chargeable API business models

Traffic generation

Revenue-share agreements

Developer communities

Past: weathered relationship between operators and developers

Figure 5.7: Application development cycle and time to monetization of mobile operator portal

Present: operator culture is changing

Developer attention is shifting

Figure 5.8: Three centers of gravity for Web applications development

Device vendor app stores

Operator-branded app stores

Satisfying developers

Figure 5.9: Historical comparison of operator-developer relationship

C H A P T E R 6

G L O B A L V E N D O R S T R A T E G I E S F O R N E T W O R K A P I S

Market overview

Service delivery evolution

Figure 6.1: Middleware positioning for open API implementation

Figure 6.2: Middleware for open APIs

Vendor strategies

Figure 6.3: Open API enabling technologies

Figure 6.4: Selection of important vendors in the open API market

Key trends

Service orientation for telecoms vendors

Telecoms orientation for IT vendors

Evolution of messaging platforms

Tier 1 vendors: NSN, Ericsson and Huawei

Oracle

Background

Figure 6.5: Oracle’s acquisitions in the telecoms market

Products and services

Figure 6.6: Oracle’s Communication Services Gatekeeper value proposition

Strategy

SWOT analysis

Figure 6.7: Oracle network API SWOT analysis

AePONA

Background

Products and services

Figure 6.8: AePONA product details

Figure 6.9: AePONA Universal Service Platform

Strategy

SWOT analysis

Figure 6.3: AePONA SWOT analysis

Alcatel-Lucent

Background

Products and services

Figure 6.11: Alcatel-Lucent’s API strategy

Figure 6.12: Alcatel-Lucent’s key pillars for enabling applications

Strategy

SWOT analysis

Figure 6.13: Alcatel-Lucent SWOT analysis

Nokia Siemens Networks (NSN)

Background

Products and services

Figure 6.14: NSN’s Service Delivery Framework

Strategy

SWOT analysis

Figure 6.15: NSN open API strategy SWOT analysis

Huawei

Background

Products and services

SDP

OSS

Strategy

SWOT analysis

Figure 6.16: Huawei’s network API strategy SWOT

Ericsson

Background

Products and services

Figure 6.17: Ericsson’s products for service delivery and provisioning

Strategy

SWOT analysis

Figure 6.18: Ericsson’s API strategy SWOT analysis

Telcordia

Background

Products and services

Figure 6.19: Telcordia’s Service Delivery and Charging products

Strategy

SWOT analysis

Figure 6.20: Telcordia’s API strategy SWOT analysis

Airwide Solutions

Background

Products and services

Figure 6.21: Airwide Solutions’ Open Services Framework

Strategy

SWOT analysis

Figure 6.22: Airwide Solutions SWOT analysis

C H A P T E R 7

F U T U R E O U T L O O K

Service delivery quadrants and operator positioning

Operators adopting different strategies for network APIs

Figure 7.1: Service delivery segmentation and operator positioning

Increasing value in the business model

Mobile network APIs: future outlook

Main drivers

Figure 7.2: Selected API initiatives

API evolution

Revenue potential

Figure 7.3: API revenue potential future outlook

Open and closed operators

Combating the force of the Web

Device APIs vs. network APIs

Device vendors

Mobile operators

The users

Key conclusions for mobile operators

Future outlook

Attracting developers and adding new services

Guaranteeing quality for premium partners