The telecom industry is gearing up for a transformative shift with the rise of network APIs. These interfaces are poised to create new revenue streams while enabling innovative applications and services. APIs have already facilitated everyday communication features such as SMS-based authentication and in-app voice chat, but the next evolution—network APIs—brings expanded possibilities for telcos to engage with enterprises and developers.
Recognising this potential, major telecom companies, including industry leaders like Ericsson, Vodafone, and AT&T, have collaborated to champion the adoption of network APIs. The goal is to streamline integration across operators, simplify access for developers, and create a unified approach through an intermediary aggregator. This initiative isn’t aimed at direct profits but at unlocking the value of the underlying API functionalities to drive revenue indirectly.
Interest in network APIs is strong among telecom executives, with a majority recognising their potential. However, opinions differ on whether API aggregators or direct engagement with developers is the optimal strategy. While network APIs already facilitate functions like subscriber identity verification and location services, they promise to redefine connectivity by offering greater control and adaptability over network infrastructures.
Industry initiatives like CAMARA and the GSMA’s Open Gateway are paving the way. CAMARA, an open-source project, has grown rapidly since its inception in 2022, with over 1,000 contributors. Meanwhile, the Open Gateway tracks APIs from numerous operators worldwide, demonstrating progress in making APIs available for use cases like fraud prevention and enhanced enterprise connectivity.
The benefits of network APIs extend beyond operators, providing value to end-users through innovative apps, enterprises through enhanced network features, developers through easier integration, and aggregators through seamless multi-operator access. However, challenges such as inconsistent network coverage, the complexity of multi-network environments, and the need for cloud-native infrastructure remain significant hurdles.
For operators to succeed, they must move beyond discussions and deliver tangible applications that demonstrate the utility of network APIs. Collaboration with developers and distribution partners will be essential in building a vibrant ecosystem where APIs are embedded so seamlessly into applications that they become invisible to the end-user.
While the journey towards widespread adoption of network APIs is complex, the opportunities they present for innovation and revenue generation make them a crucial focus for the telecom industry’s evolution. With key players like Nokia making strategic moves, such as acquiring Rapid for enterprise API management, the momentum behind network APIs continues to grow.
Cerillion plc (LON:CER) is a leading provider of billing, charging and customer management systems with more than 20 years’ experience delivering its solutions across a broad range of industries including the telecommunications, finance, utilities and transportation sectors.
