Monetising the API infrastructureBY Krishna Kumar Menon – Solutions Head - Telecom

Most Operators have until quite recently operated a 2-tier busi-ness model, with network infrastructure forming the bottom layer and the commercial functions on top. Instead the trend is towards a 3-tier business model, where products and services will no longer be built directly out of the network infrastructure. Large and progressive Operators are investing in an Application Environment (API Platform) for implementing, exposing, and delivering next generation network & IT capabilities to the external world.

Each capability will support multiple NGN services and will be made up of elements that reside within the operator’s network itself or within higher service creation and management layers. Not every Capability is necessarily intended to be available to all service providers and retailers.

throughout the application environment IT HAS BECOME POSSIBLE FOR 3RD PARTY ENTI-TIES (ASP, CONSUMERS, SERVICE PROVIDERS,AND ENTERPRISES) TO DISCOVER, SUBSCRIBE, AND CONSUME SUCH CAPABILITIES AS PART OF THEIR SERVICE OFFERING TO THEIR END USERS OR TRANSFORM THEIR OPERATIONS

Innovative Customer facing Services can be implemented as an applica-tion that combines functionality provided by Capabilities, underlying Functions, and virtualized Network services.

The API revolution is upon us.

According to Deloitte, over 10,000 APIs have been published till date from across telecom, media finance, travel & tourism, and other hightech industries

Netflix received more than 5 billion daily requests to its public API's

For e.g. in the finance industry, entrenched players are exploring open banking platforms that unbundle payment, credit, investment, loyalty, and loan services to compete with new entrants like Paypal, Billtrust, Amazon, etc. that are riding the API-driven services into the payment industry.

The volume is a factor in both the rise in usage of the company’s services and its valuation. Many in the travel sector like British Airways, Expedia, TripIt have embraced APIs and are opening them up to outside develop-ers.

According to Deloitte, over 10,000 APIs have been published till date from across tele-com, media finance, travel & tourism, and other high tech industries

Netflix received more than 5 billion daily re-quests to its public API's

Operators are moving to business models which have improved connectedness with partners,suppliers,customers and employees enabling them to influence every aspect of customer relationship and revenue stream

Operators are exposing a variety of NGN capabilities to the market-

1. Profile – The ability to store and access User data2. Presence – The ability to check if someone is online, busy or offline3. Authentication – The ability to check someone is who they claim to be4. Application Driven QoS – Ability to boost ADSL & Fibre lines5. Call Set-up – Ability to set up calls between parties6. Session Control & Set-up – Ability to control session aware services like voice calls, multi-media telephony, etc.

7. Content Management – Ability to package & present media (music, video etc. to users)8. Messaging – Ability to send and receive messages both real-time and non-real-time9. Billing – The ability to charge end users for the use of service via a consolidated bill10. Geographic Location – The ability to locate a person based on the position of their mobile phone

The customer for such capabilities are people who wish to develop next generation services that include capabilities that Operators are making available.

APIs are the backbone of the opportunity. Whoever manages and monetiese the underlying services of the API are poised to reshape industries

The NGN capabilities will be presented to the external world as a set of controlled interfaces (API) which can be accessed across the internet or via private connections to create any service that developers can dream up. This can be done by just using the capabilities that the Operator offers or through Mashup (integration of NGN API with other 3rd Party APIs already available in the market place like Facebook, Twitter, Amazon, etc.).

An application implementing the NGN API may have zero visi-bility of the Operator Network but will be able to access the same in a secure, manageable, and billable manner.

There are number of benefits - for example it is possible to embed chat applications (which may be presented as a button on a web page) in a web site where it is possible to start a call between two people or change the bandwidth on a broadband line (e.g. Booster) on the fly by the user to experience an enhanced streaming session for a premium content just pur-chased.

Operators have begun to consider strategies to virtualize their networks through SDN & NFV efforts, they also need to relook at the way their current B/OSS Solutions and the Architecture are able to leverage their virtualized services for transforming their customer engagement experience, service creation, service execution.

That is where THE CIO AND THE CTO TEAMS WILL HAVE TO COME TOGETHER TO DEVELOP A CARRIER GRADE ON-DEMAND REAL-TIME SERVICE EXECUTION AND SERVICE MANAGE-MENT ARCHITECTURES

The Applications Environment will play a key role in the commercialization of the Oper-ator’s Network & B/OSS Assets providing the following benefits:

By making it easier for internal units, custmers, partners and suppliers to link together and consume each other’s capabilities, the applications environment will facilitate business agility, enable incremental revenues and drive down costs.

By enabling such an architecture, it will be possible for Operators to provide for 3rd party entities (ASP, other Service providers, Enterprises, Machines, and consumers alike) the ability to subscribe, access, and deliver new age services.

The starting point is the creation of an ‘Application Environment’ which establish a stadardized and common way for operator to provide:

1. Controlled & chargeable exposure of own & 3rd party services and service fea tures for use by the Operator, 3rd Party VAS Enablers, Applications & Services2. A framework for Cost effective and timely development and testing of new appli cations and services by development teams3. Hosting and operational management of developed applications and services at a competitive rate and within a service level agreement (SLA)4. Professional services of experienced application developers to aid in the cre ation of internal and external applications

1. Exposing functionality and business process via standard and open interfaces will make it easier and quicker for customers, suppliers and partners to link with the Operator, making the Operator, a partner and supplier of choice

Linking and consuming each other's facilities will facilitate business agili-ty, enable incremental revenues and drive down costs.

In summary, the ingenuity of the service is left only to the imagination of the application builder and the fact that the same can be built and deployed in to the market place quickly means that the service provider has the power now to offer rich services without resorting to costly service launches as is currently the case and also independent of the operator.

2. This capability will allow easier integration of Network and application functionality, which helps an Operator to move up the ICT value chain into the managed applica tions layer

3. It will help to ensure that the NGN Services environment becomes the environment of choice for applications, content and service providers, thereby creating a “virtuous circle” of services attracting customers attracting services etc.

4. By exposing functionality to 3rd parties, it will facilitate the creation of new business models, incremental revenue lines and innovative applications and services, whilst also reducing the Operator’s risk profile on service development

5. It will act as a “shop window” for the Next generation services, increasing revenues by offering selected applications and services for sale to the Operator business units and third parties

6. The standardized methodology & technical framework of the Applications Environ ment will reduce both time-to-market and time-to-profit.

7. By encouraging component re-use and removing duplication, it will reduce develop ment & operational costs.

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