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Mobile Operator Network API or “extensible Application Famework

16. September 2009

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Mobile operators are constantly asking if they should charge for exposing network level API’s. In a discussion just yesterday there was a strong sentiment for “YES” if they add real value…..I had to go back and remind them of a couple of things.
Does Facebook charge for accessing their API’s? Does Twitter? Does Java on the handset? Does Apple charge to access the Accelorometer api on the hanset? NO.
And by the way what is real value add? Don’t the developers application add real value to the network? Mobile Operators primary focus should be not to be disenfranchised in the value chain. API’s at the telecom operator has the strong potential to increase ARPU’s up to 36%

Currently there are some 15M software developers in the world. Of these there are a number of opportunities for them to developer their applications
1 Embedded
2. Enterprise
3. mobile
4. web

Mobile Developers are at the heart of multiple different programs

Mobile Developers are at the heart of multiple different programs

If you then look at mobile developers only, competition for these developer is extremely fierce…. handset manufacturers (nokia, sonyericsson, motorola, huawei, samsung, apple etc) software vendors (java, android, adobe, microsoft, LIMO, etc), application stores (handango, getjar, etc) and operators (betavine, orange, sprint, at&t, etc) all looking to win the hearts and minds of developers.
Developers go where the money is and charging them is only going to turn them away.
The VC market funding developers focussed on network centric applications is pretty dry at the moment due to lengthy sales cycles and tight exit windows.

There are a number of alternative means of monetizing the network assets and the operators have a lot of strong asset. We have worked with a number of operators on revenue approaches adding value to their franchise whilst contributing to the bottom line.