Expose Network Capabilities to Facilitate Innovation on a Smart Network

Next Generation Communications Blog

Expose Network Capabilities to Facilitate Innovation on a Smart Network

By Ed Silverstein

In a Web 2.0 world, explosive growth in demand "has created an environment dominated by third-party application and content providers," according to an analysis from Alcatel-Lucent. These ACPs, company officials say, "are not only delivering the applications and content generating the huge increase in traffic, but are also benefiting from the associated revenue."
Mobile network providers want to take advantage of the money being generated.
TMCnet's David Sims says that to meet end user expectations and get a piece of the new application and service revenue pie, a recent Alcatel-Lucent study found, "mobile network providers must find new ways to use their network assets to work with third-party partners."
The Alcatel-Lucent Open API Service, company officials say, might be a way to accomplish this.
The service provides a hosted, cross-carrier application mediation environment network providers can use to "expose valued network assets to multiple third-party partners to improve time-to-market with new applications and multimedia content for targeted end users."
In other words, as a network provider, you'll stand out for the value you add, instead of being replaceable.
Most any network providers can effectively manage relationships with one or two key third-party development partners. But managing multiple ACPs required to meet the application and content demands of end users? That's complex - and expensive.
Again, here's where the Alcatel-Lucent Open API Service comes in, as a way to eliminate the complexity, lower the expense, and reduce the risks so network providers can benefit from working with a larger partner ecosystem.
With the Alcatel-Lucent Open API Service, network providers do not need to make additional investments or incur large capital and operational expenses dealing with multiple developers accessing their networks. Alcatel-Lucent provides an open, secure environment on a carrier-grade, scalable and open software platform that allows multiple network providers to offer access to key service enablers. Third-party partners tap into the environment using lightweight, Web-friendly application programming interfaces (APIs) that enable a "write once, use everywhere" development approach to accelerate the creation and adoption of services.
In addition, for many network providers, there is no additional revenue beyond user access fees for the delivery of third-party applications that do not utilize network capabilities.
And network providers who continue to rely solely on traditional access business models for revenue growth risk loss of relevancy, commoditization and increased churn.
Some 71 percent of network providers launch less than 5 applications per month; those who do launch more utilize a developer platform or 3rd party hosted app store, according to Alcatel-Lucent research.
Alcatel-Lucent says that new telco business models allow greater collaboration with value-chain players who are willing to pay for network provider capabilities exposed as open APIs. Some 75 percent of app developers are willing to pay for subscriber preferences and location, according to Alcatel-Lucent research.
Network providers can become more agile, remain relevant and gain new diversified revenues by offering these and other developer-valued capabilities via new telco business models.
 


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