& cplSiteName &

Telefónica: In APIs We Trust

Ray Le Maistre
LR Mobile News Analysis
Ray Le Maistre, Editor-in-chief
10/11/2012
50%
50%

Telefónica SA (NYSE: TEF)'s Jose Valles wants to make one thing very clear about his company's new mobile payments Application Programing Interface (API) program, which has already attracted Telenor ASA (Nasdaq: TELN) as a partner: This is not WAC version 2.0. (See Telefónica, Telenor Team on APIs and WAC Beefs Up Its App Pack .)

There are a lot of similarities between the aspirations of BlueVia -- the unit of Telefónica Digital that Valles leads -- and those of the now defunct Wholesale Applications Community (WAC). Both aim (or aimed, in WAC's case) to provide applications developers with a quicker route to mobile users and make it easier for those users to access and purchase apps. (See Wave Goodbye to WAC.)

WAC, which was always closely associated with the GSM Association (GSMA) , was pulled down by having too many companies trying to steer the ship and lacking a specific focus on certain capabilities, says Valles. The GSMA, which is now managing WAC's legacy initiatives and programs, "are good guys but there were 42 operators around a table trying to get a consensus. ... We have the same agenda and the same focus, but we are going to build it from the basement up, not from the roof down," Valles says.

Valles adds, during a media briefing in London late Wednesday: "We don't need 42 operators to make this work. We will start with a few and build it slowly. We're trying to create an industry standard and change the industry's dynamics. Telcos can become trusted providers of [not only] their own services but also of approved products and services from third parties. We won't be chasing everyone to join. We'll talk to those who are interested and bring new partners on board as our bandwidth allows. But we're not going to have 42. ... WAC tried to do everything."

And in terms of focus, Telefónica and Telenor are targeting the development of a standard API that enables direct-to-bill payments (allowing people to buy all sorts of apps, services and goods using their mobile bill/credit). "This is a major pain point and the low-hanging fruit," notes Valles. "It's that focus that attracted Telenor. We're going to put all our attention on this and prove some stuff. I know of one operator that talked about opening up 72 different APIs. We're starting with one."

But it's important that other operators beyond Telenor share the BlueVia vision, explains Valles. "The developers want multiple operators involved. We, Telefónica, tried initially on our own, but one operator is not enough."

Valles isn't identifying any other potential carrier partners just now, but there's a group of mobile operators that are natural prime candidates. That's because a key ally for Valles is Apigee Corp. , BlueVia's API management platform partner and the company that acquired the WAC technology assets. (See Apigee Unleashes an API Free-for-All and Telefonica Partners With Apigee.)

Among those technology assets was the WAC payment API, which has been adopted by a host of major operators in addition to Telefónica and Telenor. Those operators include AT&T Inc. (NYSE: T), Deutsche Telekom AG (NYSE: DT), the South Korean trio of KT Corp. , LG Telecom , SK Telecom (Nasdaq: SKM) and Smart Communications Inc. of The Philippines.

Working out a roadmap
Valles says BlueVia is holding a workshop next week with Telenor to try to "pin down a roadmap for where we need to go."

A key part of that roadmap will involve highlighting the potential benefits to those involved in the payments ecosystem -- operators, direct-to-bill payment partners such as Facebook , Google (Nasdaq: GOOG), Microsoft Corp. (Nasdaq: MSFT), and developers -- apart from the obvious financial gains from increased customer traction.

A key potential benefit is a greater understanding of user behavior and hard data about the popularity of apps. Valles says the focus on direct-to-bill capabilities will enable BlueVia to "analyze [transaction] data and see the hot users trends. We don't know yet how we are going to work with the data but we'll be focusing on that."

It's one thing having the data, and another making use of that data -- mobile operators are sitting on a pile of gold, he notes, but their Service Provider Information Technology (SPIT) systems were not designed to have their data extracted and analyzed. He'll be looking to his Telefónica Dynamic Insights colleagues for assistance in digging into the data at BlueVia's fingertips. (See Telefónica Creates 'Big Data' Unit.)

Making sense of data is just one of the many challenges facing BlueVia, though. Probably the greatest challenge is developing an environment that will encourage apps developers to turn their attention away from Apple Inc. (Nasdaq: AAPL)'s APIs for a moment and create new services that hook into the BlueVia direct-to-bill interface.

Encouraging the developer community to engage with mobile operators has long been an issue and one that BlueVia has already been striving to address. (See BlueVia Tackles the App Gap.)

Again, Valles is looking to do things differently than before. Instead of appealing to apps specialists directly, BlueVia will "engage with the developers through the ecosystem," by which he means the payment platform partners such as Facebook. If BlueVia gets the model right, the developers need not even know that the telco initiative is involved.

In addition, there are the technical issues surrounding security, identity management and enabling access to payment interfaces via multiple access technologies (for example, Wi-Fi as well as mobile).

And after payments? Valles wants BlueVia to focus on one thing at a time but hints that future developments will likely focus on areas of strength for telcos -- communications. Apps with integrated, high-quality and secure multimedia communications capabilities could be a focus for the future, especially as Telefónica Digital has in-house smarts from its 2009 acquisition of Jajah. Those capabilities (from Jajah) have already been put to use in the development of the Tu Me unified communications app. (See Et Tu, Telefónica? and Telefónica Buys VoIP Player Jajah.)

Will BlueVia get that far down the road? That might depend on whether the payment API focus delivers on its potential.

— Ray Le Maistre, International Managing Editor, Light Reading

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View        ADD A COMMENT
Light Reading’s Upskill U is a FREE, interactive, online educational resource that delivers must-have education on themes that relate to the overall business transformation taking place in the communications industry.
NEXT COURSE
Friday, September 30, 1:00PM EDT
Gigabit & the Great Migration
Robert Howald, Vice President, Network Architecture, Comcast
UPCOMING COURSE SCHEDULE
Wednesday, October 5, 1:00PM EDT
Gigabit & Smart Cities
Joe Kochan, COO & Co-Founder, US Ignite
Friday, October 7, 1:00PM EDT
Gigabit & DOCSIS 3.1
Ty Pearman, Director, Access Architecture, Comcast
Wednesday, October 19, 1:00PM EDT
Securing a Virtual World
Rita Marty, Executive Director, Mobility and Cloud Security, Chief Security Office, AT&T
in association with:
From The Founder
Light Reading today starts a new voyage as part of a larger Enterprise.
Flash Poll
Live Streaming Video
Charting the CSP's Future
Six different communications service providers join to debate their visions of the future CSP, following a landmark presentation from AT&T on its massive virtualization efforts and a look back on where the telecom industry has been and where it's going from two industry veterans.
LRTV Custom TV
Flexible Deployment Approaches for the Gigabit Services Evolution

9|29|16   |     |   (0) comments


For many operators, the gigabit evolution begins with the shift from DOCSIS 3.0 to DOCSIS 3.1. But that move represents a change not only in the protocol itself, but in the approach to architecting their entire DOCSIS delivery chain -- from the headend to the outside plant and home gateway components.

Jonathan Ruff, senior director of global technical ...

LRTV Interviews
Level 3 VP: Enterprises Need More for Less

9|29|16   |   05:27   |   (0) comments


Andrew Dugan, Level 3 group vice president of global technology and IT, says enterprises need more bandwidth and they need it faster and with greater security, but they want to spend less, if possible. They are looking to carriers to reduce their network complexity and help protect them from cyberattacks as well.
LRTV Interviews
CenturyLink: SDN/NFV Pose New Interconnection Possibilities

9|28|16   |   04:37   |   (0) comments


Network operators should develop new APIs and business processes for reselling virtual assets to each other, says CenturyLink's Bill Walker. That will enable them to build digital business portfolios that help them avoid becoming commodity transport providers.
LRTV Interviews
Level 3: Overcoming Terror of Being Supplier, Integrator & Developer

9|28|16   |     |   (0) comments


At Light Reading's NFV & Carrier SDN event in Denver, Travis Ewert of Level 3 Communications said there is terror in becoming supplier, integrator and developer, but it can be overcome and be cost effective.
LRTV Custom TV
Introducing IoT World News

9|27|16   |   01:43   |   (0) comments


Self-driving cars, medical sensors, smart cities... and refrigerators. In order to address the huge scope of IoT, KNect365 has created a unique online community that will help businesses to understand and monetize the opportunities that live within the IoT market. We look forward to welcoming you to IoT World News -- your gateway to a better connected future.
LRTV Interviews
AT&T: Reusable Functions Next NFV Key

9|27|16   |   06:03   |   (0) comments


The next generation of NFV has to break functions down into reusable software chunks, making everything much more cloud-like.
LRTV Interviews
Masergy on Security: Attackers Gaining Upper Hand

9|27|16   |   5:10   |   (2) comments


At Light Reading's NFV & Carrier SDN event in Denver, Ray Watson, vice president of Global Technology at Masergy, says that because of the growth in virtualization, the threat landscape is shifting in favor of the attackers. As a result, service providers need to think beyond just defending the perimeter and take a more holistic approach to security.
LRTV Interviews
Verizon Takes Next Step on Biz Virtualization Journey

9|26|16   |   4:38   |   (2) comments


At September's NFV & Carrier SDN event in Denver, Light Reading sat down with Victoria Lonker, director of Product and New Business Innovation at Verizon, to chat about where the carrier is with delivering virtualized services to business customers.
LRTV Interviews
Global Services: The $40B Face-Off

9|26|16   |   05:53   |   (1) comment


More service providers than ever before are battling it out to win a slice of what is now a $40 billion global communications services pie, explains Ovum Principal Analyst David Molony.
LRTV Documentaries
MEC Congress: The Key Takeaways

9|22|16   |   03:25   |   (3) comments


Three key takeaways from the Mobile Edge Computing (MEC) Congress in Munich, Germany.
Wagner’s Ring
Time to Shut Up About 'Dumb Pipes'

9|22|16   |     |   (19) comments


Service providers can't compete with OTT players. It just isn't in their DNA. Instead, service providers need to embrace what they're good at -- providing reliable, secure connectivity.
Wagner’s Ring
Keeping Your Tech Career Going After 50

9|21|16   |     |   (13) comments


How do you keep your career moving forward when you're past the half-century mark?
Upcoming Live Events
November 3, 2016, The Montcalm Marble Arch, London
November 30, 2016, The Westin Times Square, New York City
December 1, 2016, The Westin Times Square, New York, NY
December 6-8, 2016, The Westin Excelsior, Rome
May 16-17, 2017, Austin Convention Center, Austin, TX
All Upcoming Live Events
Infographics
Hot Topics
Verizon CFO: Eat Our (Fixed) 5G Dust!
Dan Jones, Mobile Editor, 9/22/2016
WiCipedia: The Women Helping Women Edition
Eryn Leavens, Special Features & Copy Editor, 9/23/2016
Eurobites: Telefónica Taps Juniper for Network Security
Paul Rainford, Assistant Editor, Europe, 9/26/2016
Open Source Getting on My Nerves
Carol Wilson, Editor-at-large, 9/26/2016
Powell Kills the Cable Show
Mari Silbey, Senior Editor, Cable/Video, 9/29/2016
Like Us on Facebook
Twitter Feed
BETWEEN THE CEOs - Executive Interviews
Light Reading CEO Steve Saunders and UXP Systems CEO Gemini Waghmare discuss the strategic importance of digital identity for operators in the midst of transformation.
Join us for an in-depth interview between Steve Saunders of Light Reading and Alexis Black Bjorlin of Intel as they discuss the release of the company's Silicon Photonics platform, its performance, long-term prospects, customer expectations and much more.
Animals with Phones
There's Nothing Like Missing a Full Minute of Pokémon Go Click Here
Live Digital Audio

A vital part of increasing the number of women in comms is transforming the ways companies can support and empower women. While progressive company policies that support both men and women in achieving work-life balance are a step in the right direction, creating a company culture that supports those policies can at times be more challenging.

During this show, we'll talk to Lynn Comp, Senior Director of Industry and Sales Enabling (ISE) in the Network Platforms Group at Intel, about why those challenges exist and how companies can overcome them. She'll provide insight into how Intel has worked to create a culture that supports work-life balance, and provide steps and guidance for other companies wishing to do the same. We will also leave plenty of time to get your questions answered live on the air.