Presented at the Service Delivery Innovation Summit in London on the 16-17th September 2014. Review of what TADSummit, TADHack and TADMeetup are achieving. And where the industry needs to focus to address the drop in revenues from the commoditization of voice and messaging.

1. Building the Telecom
Application Developer
Ecosystem
Building the Telecom Application Developer Ecosystem

5. Middle Managers, Desk Jockeys, PowerPoint Politicians, Full-Time Standards
People, People who believe Management Consultants, Wage-Slaves, People
waiting to retire or made redundant, The Risk Adverse, Yes-People, People
who do what the boss tells them regardless, Corporate Anti-Bodies, etc.
TADS comes from the grassroots
Innovators, risk takers, small companies, technology leaders, independent
thinkers, creatives, people working at intersections of industries, etc.

6. The Web has won,
so let’s get with the program

7. BUT no ‘black and white’ thinking!
There’s space for both,
Telecom reaches 6B+ people

8. Analysys Mason Prediction on Messaging and ARPU
Telco p2p messaging will become niche, anticipate rapid revenue decline as SMS
moves to data. Analysys Mason is predicting a >25% ARPU decline by 2018.
Industry needs to find >$100B in new revenues within 5 years.

9. $100B Ecosystem!

10. We’re Underestimating the Impact of when WhatsApp adds Voice
Page 10 The Western European Syndrome may be upon us sooner than we think

11. BUT Telcos can get it Right!
Page 11

12. Why do Telcos need APIs?
§ APIs are just a technology, its all about the services
The money is not ‘in the API,’ it’s in the service delivered by the API. APIs
are simply delivering services more efficiently, which opens up new
business opportunities. — Jose Valles, ex-VP Partner Products at Telefónica
Digital
§ APIs are a global IT trend across all industries
An API strategy is becoming a must…in terms of speed to market with
new products, maximizing business development, and product
development opportunities. — Steve Kurtz, VP Business Development, USA
TODAY
§ APIs will become critical to maintaining Telecom’s customer relevance
Without APIs Telecoms will become irrelevant as Service Providers
because customers will expect communications to be embedded in their
experiences. — Alan Quayle, Independent Telecom Thinker

13. Why do Telcos need APIs?
Why do we need a
Web site?
Of course we have
a Web site
Why do we need
an API?
Of course we have
an API
1995 2000 2005 2010
New distribution Device and mobile support
Accelerate internal projects Operational efficiency Increase footprint
Upsell Innovation
Make churn harder Partner opportunities
New business
Extend products / services
Process automation
Telecoms is the ‘vital spice’ of any successful business ecosystem

14. Where’s the Money in External APIs?
Mobile payments revenue, source BI
Intelligence. Includes Apple, Android,
Square, $244B by 2017 Visa Mobile, etc.
$157B by 2018 Total Telecom API revenue, source
Mind Commerce. Payment,
Communications, Identity, Cloud, etc.
$18B in 2016
Alan Quayle’s view is the revenues will
be $18B and dominated by payment
and communication service revenues
by 2016
Juniper predicts DCB (Direct Carrier
Billing) growing from $2.5B in 2012 to
$13B in 2017 (this assumes only digital
downloads, not goods and services)

15. Market Situation: API Bait and Switch
Roll-up, roll-up, buy my API
software, expose some APIs,
to gain fame and fortune just
like Apple and Google
API
What is sold
What happens in practice

16. Mobile
Data
($275B)
Fixed
Data
($275B)
Mobile
Voice
($615B)
Fixed
Voice
($325B)
0-­‐2%
Regulated
Services
($1.5T)
Un-­‐
regulated
Services
Threats
to
Revenue
5.5
to
9%
3
to
4%
0 to
2%
-­‐5
to
-­‐7% ($650B)
1-­‐3.3%
Total
Telecoms
Services
($2.15T)
3-­‐6%
+ =
Over
the
Top
Messaging
hits
SMS
growth
Mobile
substitution
of
fixed
broadband
with
LTE
OTT
substitution,
saturation,
competition
Mobile
and
OTT
substitution
Sources:
operator
averages
across
developed
and
developing
markets,
supplier
estimates,
Alan
Quayle
There’s just 2 things we need to focus on

17. Customers
Services

18. Make Telecoms an Essential Spice for every Business Recipe

19. Do more VAS!

20. “Most men would rather deny a hard truth than face it.”

21. Work with Developers to
embed communications
into applications, services
and business processes.
Make Comms the ‘essential
spice’ of every business
ecosystem.
$40B by 2018 source
Mind Commerce
Work with Developers to
create new services and
applications using
communications
capabilities. Innovate in
communications else watch
revenue decline.
$35B by 2018 source
Ovum
So What Should Telcos Do?
Telecom Application Developers are now essential to addressing the revenue decline
in communication services.
Previous efforts have failed, corrective action is required urgently.

22. Defining what is meant by Telecom App Developer
Revenue Product
Internal Telco Developers
Partner Developers
Telecom App Developers
Mobile App Developers
Long Tail Developers

23. This Is A More Accurate Representation
Revenue Product
Internal Telco Developers
Partner Developers
Telecom App Developers
Mobile App Developers
Long Tail Developers

24. What do we mean by Telecom App Developer?
Hardcore
Telco Software
Infrastructure
(10ks)
Developers that recognize
they build telecom apps
IT/Web Programmers building
on FOSS, telecom app
platforms and telecom APIs
(1Ms)
‘Cut and Paste’ web developers using
web-scripting and graphical tools on
app platforms
(10Ms)
All based on IT / Web Technologies and Development Principles
today

25. TADS is about Building an Ecosystem
Hardcore
Telco Software
Infrastructure
(10ks)
Developers that recognize
they build telecom apps
IT/Web Programmers building
on FOSS, telecom app
platforms and telecom APIs
(1Ms)
‘Cut and Paste’ web developers using
web-scripting and graphical tools on
app platforms
(10Ms)
tomorrow
All based on IT / Web Technologies and Development Principles

26. Developer Needs/
(Responsibilities)
Telco Needs/
(Responsibilities)
Vendor Responsibilities/
(Needs)
Modern and easy to use
tools, docs & support
(Communicate Needs)
Go-to-market support
Viable business models
Meet Dev
tech needs
Support and protect
the telco network
Brokering
Safely expose assets
Help from vendors in
building the necessary
go-to-market support
and business models
Innovation Community of
developers
(Publicity)
Process that supports
hundreds of new services
Industry-wide (Publicity)
Best Practices
TAD Manifesto

27. For more details: http://alanquayle.com/category/startups-to-watch/
Examples of Telecom App Dev happening today!

28. Uber-ification
of Business

29. Communications is Core to On-demand Services

30. Go-to-Market is Critical, and a Critical Telco Value
Customers
Selling Services
Selling
Capabilities
Internal
Partners
External
Telco
Telco GTM

31. ECOSYSTEM

32. SERVICES