Indosat Ooredoo Tbk (ISAT) is eyeing revenue from the commercialization of application programming interface (API) to application developers and other companies. In the long term, revenue from API access fees could double ISAT’s average revenue per user (ARPU).
API is a functional device and protocol to build software applications. Alexander Rusli, President Director and CEO of ISAT, said the company will open access to nine APIs for application developers in the 11th Indosat Ooredoo Wireless Innovation Contest (IWIC). By opening API, application developers can access some ISAT subscriber data, for example in terms of payment and customers with a particular ARPU.
“It will affect data usage. If in the past, we gain revenue from customers, now we can obtain funds from those who intend to access our customers,” said Alexander.
The potential revenue from commercialization in the next few years is predicted to be huge. Some interested parties are local and foreign application developers, other telecom operators, and non-telecommunication companies. “ARPU of ISAT per subscriber is currently at IDR 2,500 per month. They will get charged at IDR 2.000 if they access our customers, thus doubling the ARPU,” said Alexander.
For IWIC participants, ISAT is providing free access to nine APIs. The company will launch the API commercialization in November 2017. This year’s IWIC program is collecting 10,703 proposals for digital ideas and apps by locals. The number of participants increased almost three times from 3,500 proposals last year. (*)