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New Business Models Feature Editorial


July 15, 2010

Network Providers and Standardized ACP Programs

By David Sims, TMCnet Contributing Editor


Network providers "are working to enable application and content providers building and launching new applications on their networks. By automating their developer and application onboarding processes, network providers are able to support demand for niche applications that were previously uneconomical."


Alcatel-Lucent (News - Alert) officials think there is a strong case to be made for standardizing ACP programs, and look at some of the associated strategic and financial benefits in a recent article, highlights of which follow:

It's no secret, as the article says, that network providers are creating new revenue opportunities by expanding their role in the Web value chain, or that "many are evolving their application and content provider collaboration programs and placing greater emphasis on bringing 3rd party applications to their customers."

The article also looks at industrializing the process: "To facilitate these new, scalable ACP collaboration programs that meet their financial and strategic objectives, network providers are starting to 'industrialize' their developer onboarding and application approval processes."

This includes evolving from one-off support of individual applications to standardized and efficient processes for enabling multiple applications: "Through industrialized processes, network providers can support their own internal application development, plus harness the innovative potential of the broader mobile and Web developer community."

This also helps reduce barriers to application submission by offering pre-tested app templates, limiting application testing to technical performance and basic decency and eliminating consideration of commercial prospects for each application.

There are strategic benefits of industrialization as well, the Alcatel-Lucent article finds: "The approach allows for faster time-to-market, reduced cost, more nimble competitive responsiveness, better servicing of customer needs, and improved economics in supporting niche applications. Opening networks to trusted ACPs, as a result of industrialization, results in improved service innovation and differentiation."

Network providers need to focus on keeping a low cost base when serving niche applications by improving, standardizing, and automating processes, the article cautions: "Supporting the business case for ACP collaboration, industrializing enables network providers to approach zero marginal cost per new application onboarded."

The new industrialized approach "must consider the costs of a standardized and automated ACP collaboration program," the article concludes, "with both the financial benefits as well as the suitability to internal strategic considerations."

David Sims is a contributing editor for TMCnet. To read more of David's articles, please visit his columnist page. He also blogs for TMCnet here.

Edited by Stefania Viscusi





 
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