Mobile operators in emerging markets should open their API’s [Application Programming Interface] to local startups, as operators are uniquely positioned to unlock heightened innovation and boost ecosystems, according to the GSM Association (GSMA).
Releasing new research on the the landscape of operator APIs in emerging markets, the GSMA argues APIs are the “bridge” between mobile operators and startups, and that by making APIs accessible to startups, operators can unlock the potential of the innovation ecosystem, as well as new revenue channels for their own businesses.
“In emerging markets, where mobile operators are the main enablers of the digital economy, operator APIs are a powerful channel for unlocking creativity and giving the startup ecosystem a boost,” the GSMA says.
“Every time an operator opens a new set of APIs, it creates a powerful cycle of innovation as start-ups can combine several APIs to create new services.”
Currently, the research finds there are over 15,000 public APIs across the world today, up from 400 in 2006. However, the organisation calls on operators to continue to increase this figure, particularly in emerging markets.
In particular, the report says feedback from startups and developers shows the most useful local operator APIs are messaging (SMS, USSD), billing (direct operator billing), mobile money, and location APIs.
“In emerging markets, mobile operators are some of the biggest companies with the broadest customer bases. As such, they are uniquely positioned as the go-to partners for start-ups wanting to access telecom APIs like messaging, billing, location, or mobile money to provide mobile services to their end users,” the report says.
According to the research, mobile operators in emerging markets have a first-mover advantage in terms of working with local startups and developers, thanks in part to the strong brand image, wide distribution networks, and large customer bases operators enjoy in these markets.
This means operators can pip even the likes of Facebook and Google to the post, in terms of securing partnerships with local innovators.
It is not only startups which stand to benefit from the opening up of operator APIs, the GSMA says.
Operators in emerging markets stand to enjoy three main benefits from opening their APIs to local startups.
Short-term benefits will enable them to deliver more value to end users, due to the creation of numerous new services through the API programme.
In the mid-term, operators will have the first access to local startups and developers, with the possibility to engage and partner for innovation.
Looking at the long-term impact, opening APIs poses the potential to open new revenue streams for operators through fast-growing startups.
“We are calling mobile operators to open their APIs, harmonise them, and collaborate with one another in order to seize this opportunity,” the GSMA concludes.
Operator teams behind API programmes should already begin ramping up their outreach efforts within local startup communities, and engage with these groups more broadly, the report advises.
