According a GSM Association (GSMA) report, services such as USSD, SMS, billing, location and mobile money, when delivered via APIs (Application Programming Interfaces), could help Africa to overcome challenges such as low mobile broadband penetration (24%), smartphone adoption (25%), and debit card penetration (19%). However, many tech companies in Africa, especially startups, are yet to enjoy maximum access to operator APIs.

In Nigeria, startups are faced with several procedural and regulatory challenges when they attempt to access operators' APIs.

Lanre Adeloye, Co-Founder of health startup SaferMom, working with operators to rollout an API-enable USSD service is a 'nightmare'. "It is expensive and beyond the reach of many startups in the country. The operators want to make quick money and they are always looking for companies who will launch a USSD service with high volume. Very few startups have high volume."

Tech analyst Segun Adedapo observed that operators and startups are already growing apart.

"Not pushing for a startup-friendly telecoms space would be one of the biggest mistakes made by several African countries including Nigeria. The operators have grown to believe they have the money to rollout any service they want without the help of the startups, while the startups are also very confident in their ability to find other channels to get their services across to the targeted users. But the truth is that achieving set goals would be much easier for both parties if they work together. The big question is who will bring all of them to the table?"

Adedapo's submission is in line with the GSM Association's (GSMA) latest report entitled APIs: A bridge between mobile operators and start-ups in emerging markets.

According to the report, there is a global surge in the number of APIs rising from less than 400 in 2006 to more than 15,000 presently. This surge has given rise to the API economy as typified by eBay which generates 60% of its revenues via API while Expedia's stands at 90%.

In place of this strained relationship between startups and operators, the GSMA report affirmed that both operators and startups would benefit when they decide to work together.