Unlocking Telco API Monetisation

By Andre Truter, BSG Telecoms, Media and Technology Practice Leader

 

For years, telco operators have been searching for new ways to make money by monetising their APIs. The concept is simple: by opening up their networks to developers, they can drive innovation, generate fresh revenue streams, and stay competitive in a fast-evolving market. Sounds great, right? But the reality has been trickier than expected.

Big names like MTN (with its Chenosis platform), Vodafone, AT&T, and Orange have made impressive strides. Their platforms offer valuable services like SIM Swap Fraud Detection, Call Management, and Geo-Location, all while adhering to standards set by industry bodies like TM Forum and GSMA.

The Chenosis team at MTN recently helped one of Africa's biggest media companies overcome a major hurdle with their WhatsApp chatbot – there simply wasn’t enough support for local languages. Thanks to Chenosis APIs, which tapped into a partner solution offering local South African language support, the media giant was able to connect with customers across multiple digital channels in their own languages. This made conversations more personal, boosted engagement, and led to much better results overall.

Still, despite these achievements, success has been harder to come by than many hoped.

 

Why API Monetisation Has Hit Roadblocks

 

One of the main stumbling blocks? A heavy focus on the tech itself. Many telco companies assume that if they build cutting-edge platforms, customers will automatically flock to them. But here’s the thing: without a deep understanding of what the market really needs, even the fanciest tech won’t make an impact.

Marketing is another challenge. The usual B2C marketing strategies that work for core telco services don't translate well when it comes to selling APIs. These services require a different approach – one tailored to developers, startups, and businesses. Unfortunately, this disconnect has slowed growth.

And let’s not forget about geography. Telcos are often bound by national networks, which means their APIs have limited reach. Without a global developer community, scaling API monetisation to a profitable level is a tough ask.

Lastly, many telcos have focused too much on network APIs. While important, they are just one piece of a much bigger puzzle. This narrow approach limits the appeal to developers and slows the development of broader, more exciting offerings.

 

A Fresh Approach to API Monetisation

 

So, how do telcos unlock the real value of their APIs? It starts with a shift in mindset – from just focusing on the tech to building thriving ecosystems. Offering APIs isn’t enough. Telcos need to create an environment that supports everyone from solo developers to large enterprises. This means providing the tools, support, and clear pathways to success that developers need.

Leveraging existing relationships in the B2B space is another smart move. Telcos already have strong connections with enterprises. They can use these ties to promote API services to small and medium-sized businesses and larger companies. By showing how APIs can enhance existing services, telcos can drive more interest and adoption.

A more holistic approach is key, too. Telcos should offer easy access to all of their APIs – not just network ones, but also payments (like mobile money), edge computing, and more. A single unified platform would make it much easier for developers to create innovative solutions that use multiple telco services at once.

Partnerships are also essential. By working with tech companies, cloud providers, and industries like banking, telcos can expand their API offerings and tap into new markets. These partnerships help grow the API business faster and attract a wider range of developers.

Running the API business like a startup – lean, agile, and with fewer constraints – will allow for quicker responses to market demands and greater innovation. Telcos need to adopt a more entrepreneurial mindset to keep pace with the rapidly evolving tech landscape.

Above all, telcos should focus on a value-driven approach. Instead of going all in from the start, they should start small: invest in specific use cases, and prove their value before scaling. This gradual, thoughtful approach leads to a sustainable business model that can adapt as market needs change.

 

 

Accelerate Your API Monetisation

 

To fast-track API monetisation, telcos should focus on these key strategies:

  1. Adopt a value-based approach: Start small, prove value, and scale over time with a focus on delivering results that matter.
  2. Operate with agility: Run the API business independently to enable faster innovation and responsiveness to the market.
  3. Develop a unified platform: Offer a seamless, integrated API platform that excites developers and sets the telco apart from competitors.
  4. Leverage partnerships: Collaborate with other players and across industries to expand beyond traditional APIs and offer more comprehensive solutions.
  5. Tap into core strengths: Don’t forget the valuable aspects of the traditional telco business that can support API success.

 

By focusing on these strategies, telcos can unlock the full potential of API monetisation and drive significant value for themselves, their customers and the broader ecosystem.

ADOPTING A VALUE-DRIVEN APPROACH

 

BSG’s experienced team works with you to enable you to compete smarter in a crowded environment, serve your customers better through a CX-led approach, operate more profitably by bringing new products to market faster while managing costs, and innovate with a value-led approach. Get in touch with us today to discuss how we can monetise your organisation's APIs.

 

Recent Posts
Contact Us

We love talking about change. If you've been inspired by anything you've read here, please get in touch.

Not readable? Change text. captcha txt
Insights from the AWS Summit 2024