On the MNO side , however , Open Gateway stands out with a vastly different approach compared with the traditional wholesale business model known to the telco industry . Unlike the classical model , where MNOs primarily compete against each other , a different competitive landscape is introduced . In many Open Gateway use cases , the competition does not exclusively come from other MNOs . Instead , success in “ multi-MNO use cases ” relies on leveraging the existing SIM base of each telco . Otherwise , such kinds of use cases won ’ t be effective at all . Hence , joint go-to-market strategies and collaborative efforts among MNOs to effectively address these are critically important .
To realize the full value of Open Gateway , MNOs must package multiple APIs into comprehensive services that cater to specific use cases . This allows MNOs to effectively market their offerings to developers , presenting them with not only novel technical tools , but also holistic solutions . For example , combining APIs related to user identity and anti-fraud measures can result in powerful solutions addressing multiple customer needs .
Furthermore , Open Gateway can revitalize the text-message OTP authentication business , whose growth curve has begun to flatten out , and turn it into new business . By transitioning legacy volume to Open Gateway , MNOs can retain their footprint in the growing authentication market .
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SUMMARY
Based on these observations , 5 DISTINCT KEY AREAS in Open Gateway can be pinpointed , each of which requires the close attention of telco decision makers .
COOPETITION AMONG MNOS IS NECESSARY Many Open Gateway use cases require coordinated efforts among multiple MNOs to persuade service developers to implement network APIs . Dedicated strategies , joint go-to-market approaches , coordinated sales measures and product demos are essential to acquire large-scale partners effectively .
TODAY ’ S LEGACY BUSINESS IS TOMORROW ’ S NEW BUSINESS Open Gateway offers the potential to transform existing text-message OTP authentication into a new business opportunity . This is crucial as traditional text-message-based two-factor authentication is being gradually replaced by more user-friendly and cost-efficient alternatives , including proprietary authentication services and biometric solutions like fingerprint or face recognition .
API COMBINATION FULLY UNLEASHES THE VALUE OF OPEN GATEWAY To break free from the traditional mindset of “ one service , one price tag ”, MNOs need to adopt a more innovative and holistic approach to product development . They must explore the option of tying together various APIs , modeling tailored products and developing distinct pricing plans to maximize the potential of Open Gateway .
INDIRECT WHOLESALE THROUGH HYPERSCALERS AND AGGREGATORS REMAINS IMPERATIVE Separating from hyperscalers is impractical since they remain the primary lever for maximizing market reach . MNOs should focus on establishing partnerships to enhance scale and make their API products more appealing to developers . Diversifying across multiple providers reduces dependencies and mitigates cluster risks associated with the use of just one provider .
PRODUCT INNOVATION MUST BE JOINTLY DRIVEN WITH DEVELOPERS Unlike traditional telco services with well-defined service ranges , Open Gateway services are still evolving and require active collaboration with developers . MNOs should engage developers early in the process to co-create new products or iterate on existing services , ensuring flexibility and market alignment .
THE AUTHORS
Open Gateway represents a significant opportunity for MNOs to actively drive innovation , unlock new business possibilities and embrace new revenue streams . By understanding its unique dynamics and adapting strategies accordingly , MNOs can position themselves at the forefront of this technology and reap its benefits .
Although the range of use cases with the existing and future set of network APIs is theoretically unlimited , telcos need to be cautious : Cooperation between telcos must not be limited to joint development of APIs . The only way to efficiently reach hyperscalers , aggregators and large corporations is by employing a carefully coordinated sales strategy that utilizes the weight of about 50 % of global mobile connections .
DR . NIMA AHMADI Partner Eventually , collaboration , customer-centricity and a proactive approach to product development will be the key to unlocking Open Gateway ’ s full potential .
MARC RENNER Managing Director This document constitutes general guidance only and information provided herein does not serve as a basis for any action without receiving specific professional advice . In particular , it must not be construed as investment advise or recommendation of any investment . goetzpartners shall not be liable in connection with the information contained in the document . © 2023 goetzpartners . All rights reserved .