Telecom ecosystems have changed drastically in the last few years, creating a number of revenue-generating opportunities for developers up and down the value chain. Service providers, meanwhile, have seen their revenue streams dry up as the traditional direct-to-consumer model has become somewhat antiquated.

The end result is a situation where third-party developers are generating revenue from applications that run on service provider networks, without the service provider seeing any value on their end.

In order to break free from the chains of this new model, service providers must create their own presence in the API ecosystem. This is an area where many operators have been reluctant to venture, leaving untapped revenue to be swallowed up by smaller players in the value chain.

By exposing their key network assets and managing their own developer communities, service providers can attract new customers and limit churn while helping to create the next-generation of crowd-pleasing services.

To help showcase the true power of APIs, Alcatel-Lucent (News - Alert) recently put together a white paper titled, "For Service Providers, It Is Time to Make Money with APIs." The document details a number of thriving companies that rely on API’s to drive value and offers a myriad of reasons why service providers are well-positioned to get in the game.

Creating Meaningful Customer Service Channels

One great example is Twilio (News - Alert), which provides simple APIs that developers can use to add phone and text functionality to their applications with minimal hassle. With Twilio, developers can create new services, add value to their applications and essentially cut service providers out of the value chain.

Another good example is Demand Results, a company founded only a few years ago that helps call centers gain more visibility and control over their customers. The company's new product, RingDNA, allows customers to contact a call center using voice APIs directly from an app. This way, customers can make contact with a click of the mouse while the company can see who is calling, monitor calls and use the information for marketing purposes.

Companies like Twilio and Demand Results are leveraging the power of APIs to provide their clients with immediate and meaningful customer response tools.

Building Efficient Market Analysis Tools

LendingTree.com, which helped revolutionize the home mortgage industry, employs a marketing technique known as number provisioning that is made possible by third-party APIs.

With number provisioning, companies like LendingTree can quickly obtain 1-800 numbers and match them with specific geographic and demographic targets – all without having to buy them from a service provider. The company then crunches the sales figures of each telephone number to create actionable marketing metrics previously unavailable to phone campaigns.

Empowering Real Estate Transactions

Several online real estate and rental listings companies have begun leveraging communication APIs to take their business to the next level. As an example, Trulia – a listings site that connects buyers and realtors – uses an API application that direct-messages realtors when incoming lead information is obtained, thus eliminating the feel of the middle man while delivering unique value.

Another example is Airbnb, a company that connects travelers with home owners looking to rent their property. Airbnb developed an API-powered mediated voice call system called Voice Connect, which connects the two parties without needing phone numbers to be exchanged.

Get in the Game!

As has been proven time and again, open API-driven applications create real-world value, and need to be respected accordingly. Although service providers are late to the game, they hold a number of key pieces that can allow them to take hold of the reins.

The major advantage that service providers have is their infrastructure, which means that – unlike third-party developers – they don't have to play the part of the middleman. Companies that require QoS and uptime guarantees would much rather partner with service providers.

In addition, service providers are uniquely positioned to handle high volumes of traffic, something third-parties are unaccustomed to account for. Couple this with the fact that service providers have name recognition and a proven approach, and it becomes obvious that APIs aren't just for middlemen anymore.

"The middlemen are leading the API charge, and they are not going away. That doesn’t mean service providers can’t take the lion’s share of API revenues," says Alcatel. "By watching the middlemen carefully to see what sticks and what does not, service providers can deliver APIs that leverage the scale, reliability and longevity advantages that only service providers possess."

A few of many examples of how the leveraging of API-powered services can be unique to operators include:

• Scalable QoS
• Optimized video delivery
• Interactive voice and video management
• Call control and routing
• Partner and revenue management

Alcatel-Lucent's Open API Platform offers service providers a simple framework for leveraging the power of APIs and managing their own developer communities. The platform is part of Alcatel's comprehensive Application Enablement strategy.  Given the need for operators around the world to create new value where they are a critical and profit generating part of evolving ecosystems and new business models, using open APIs as a foundation for creating or sustaining their criticality deserves significant (some might argue immediate) consideration.

Beecher Tuttle is a TMCnet contributor. He has extensive experience writing and editing for print publications and online news websites. He has specialized in a variety of industries, including health care technology, politics and education. To read more of his articles, please visit his columnist page.

Edited by Peter Bernstein