Getting ready to speak the new language of telecom network APIs

By Pratima Harigunani

Entering a foreign country is both exciting and intimidating, especially when you are not a tourist but someone who intends to spend some time there, dig in one’s heels, pitch some tents and make efforts to settle in. This takes a lot of logistics work, but the real challenge comes after all that furniture-moving: speaking to and understanding the people there. This cannot happen unless ‘they’ know ‘your’ language or vice versa.

Until the language barrier is ironed out, you will always feel out of place at best; make serious mistakes, stir up dangerous misunderstandings, and run into some ‘not so pretty’ pickles. You have to be open. You have to be flexible. And you have to be brave. Once that is resolved, you can start using any path that works—a global language like English, mastering a new common sign language, or taking a course in telepathy. No matter how it goes, for telcos, the land of new realities starts with Network APIs or application programming interfaces.

The First Class: Learning the Alphabets

Network APIs are the couplers and connectors that bring together telco-bogies to new-world engines and compartments. Without these interfaces, it is hard for telcos to move forward. They must be conversant in the language that the new world of 5G, 6G, Augmented and Virtual Reality, and Artificial Intelligence (AI) speak.

Sylwia Kechiche, Senior Director, Industry Analysis at Opensignal, observes that Network APIs are becoming increasingly relevant for the future of the telecom industry, particularly considering their potential to transform end-user experiences. “By enabling developers to access and utilise network capabilities programmatically, APIs unlock new possibilities for personalisation, performance optimisation, and service innovation.”

Here is why they matter. A recent McKinsey report unravelled that although telcos have invested nearly USD 1 trillion in network upgrades since 2018, they still struggle to monetise 5G. Telcos must open their arms via APIs to extract significant value from 5G’s unique capabilities instead of making it a missed opportunity. Remember streaming video and enterprise messaging where other players gained from telcos’ infra? APIs are critical for enabling connectivity and ensuring compatibility among various software applications. More so, with the rise of cloud computing, the Internet of Things (IoT), and 5G technologies.

An ABI Research report indicates that the network API market size can grow by 10X between 2024 and 2028, hitting the USD 13.4 billion mark for the service opportunity generated by APIs. If we look at this space through STL Partners’ research-prognosis, the value of network APIs will reach USD 34 billion by 2030, up from USD 4 billion in 2023. This value will be spread between realisable revenues through direct and indirect channels, where aggregators will take a margin and enablement value to support operators’ edge computing or private network strategies. The research also points out how growth in network performance APIs will drive longer-term revenue and unlock enablement value.

McKinsey estimates that the network API market could unlock around USD 100 billion to USD 300 billion in connectivity and edge-computing-related revenue for operators in the next five to seven years. It would also generate an additional USD 10 billion to USD 30 billion from APIs. This may also transpire into gains for non-telcos as telcos could cede as much as two-thirds of the value creation to other players in the ecosystem, such as cloud providers and API aggregators.

Communication Service Providers (CSPs) have a goldmine of capabilities—network data, location data, customer intelligence, and device information, argues Sandeep Singh, SVP and GM of Digital Business Enablement at Mavenir. “With Network APIs, CSPs can expose these capabilities to industries like AI, fintech, gaming, healthcare, and entertainment, enabling real-time, high-quality, and secure connectivity.”

Not So Valyrian Any More

It is interesting to see how this space is progressing. We have witnessed GSMA teaming up with the Linux Foundation for CAMARA, an open-source project focused on developing a set of standardised network APIs. The idea here is to bring out standard definitions for APIs so developers can use a single piece of code to access 5G capabilities across networks, as highlighted in a McKinsey 2024 report. GSMA’s Open Gateway initiative was also created to identify the most marketable APIs and spur telcos to introduce them using CAMARA’s standards.

The Open Gateway initiative, launched by leading mobile network groups under GSMA and the Linux Foundation, highlights the industry’s commitment to this transformation and weighs in Kechiche. “By standardising APIs through the CAMARA open-source project, this initiative ensures that APIs are interoperable across networks, creating a consistent framework for developers and fostering global collaboration.”

Do they work? In November, three Brazilian operators—Claro, TIM Brasil, and Vivo (Telefonica Brasil)—announced a joint effort to launch three CAMARA APIs to improve digital security. Over 40 of the world’s leading carriers have agreed to adopt CAMARA’s API standards. In September, Deutsche Telekom and Vonage also launched MagentaBusiness APIs, enabling developers and businesses to build apps and services using CAMARA APIs that tap into Deutsche Telekom’s network.

Deshbandhu Bansal, COO of RevTech, Comviva, also illustrates the adoption curve. “In our experience of working with Tier 1 operators spanning regions from the Americas to Japan, we see an increasing interest and willingness of telcos to explore this opportunity and test the waters on use case readiness, adoption, and business viability.”

“There is considerable excitement and activity surrounding Network and Telecom APIs, driven by their potential to innovate and monetise the capabilities of 5G-era networks,” reckons Arvind Khurana, Regional VP and Country Head for Cloud and Network Services, Nokia India. The mindset shift is evident in all the standards’ work achieved over the past year, with GSMA Open Gateway Initiative and the Linux Foundation CAMARA programme.

“There is no question that we are seeing a new level of openness unlike before. This is because 5G-era networks are rich in capabilities – like improving network quality on demand – that can make a difference to enterprises and consumers in ways that were not possible years ago. 5G-era networks are fundamentally software-based, a step change from how networks were designed years ago. It also means they are programmable by nature. We are no longer trying to open up hardware-centric networks that were never designed to be open to programmability,” Khurana explains.

Within just a few years of its launch, over 50 operators spanning 240+ networks globally joined the GSMA Open Gateway initiative. Bansal seconds that path. “Spearheaded by TM Forum, GSMA, and CAMARA, the GSMA OpenGateway initiative offers a framework of universal API with their Meta Release bringing 25 APIs to the ecosystem. If one were present at the major telco events worldwide, including MWC, DTW, CASA, Network X, and many more, Network APIs and their relevance would be selling like hotcakes.”

The Next Step: Learn Your Vowels

As potent and proximate as this goldmine looks, telcos cannot crack this new game without focusing on a key interlocking piece of this puzzle. Yes, developers!

A recent STL Partners survey, ‘Telecom network APIs: What do developers want?’, states that 55% of software developers do not associate the term ‘network application programming interfaces, APIs’ with telecom network capabilities but rather link these APIs with the management of their broader IT networks. However, it was also observed that the developer community is increasingly aware of industry-driven telecom API initiatives, such as GSMA Open Gateway and CAMARA. Still, more can be done to boost knowledge in this space. Regarding the perceived value of different features of network APIs, accessing network performance information, such as latency and jitter, was the most popular choice (for 54% of developers). Also, 44% see value in specifying and guaranteeing network performance levels for some time.

What is most notable for telcos to remember here is that developers get APIs predominantly through hyperscalers, such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud; this is happening even for telecom APIs. Telcos would need to create appropriate models and pathways to strengthen the developed aspects of this API ecosystem, especially when hyperscalers already have an edge over telcos on this front.

Then there is the data challenge – regulating its security and privacy and eking out real-time strengths for latency-sensitive apps. MarketsandMarkets has also underlined how the widespread use of APIs in handling sensitive user data has brought data privacy to the forefront (especially when GDPR and CCPA are stringent), and regulations influence design and API implementation to implement functionalities for encryption, anonymisation, and access control, among others.

As Bansal points out, it is an understatement to question the credibility and potential of Network APIs. “We have rarely seen in the past that the whole industry is rallying behind the cause of universalising, simplifying, and standardising the APIs, including GSMA, CAMARA, TM Forum, 3GPP, ETSI, MEF and 5GFF. It is clear to the telcos, by now, that in their attempt towards digitisation, network APIs are the wave they should ride on to make the most of it while it rides high. Comviva has worked in the Network API space for two years.”

Vikram Puranik, Senior Vice President of engineering and Head of the Consumer, Communications, and Media vertical at GlobalLogic—India and APAC, adds that API-driven architecture is important for telcos as they build partner ecosystems to monetise the 5G network. These APIs shift the focus from abstract connectivity to tangible application use cases. By providing developers with the right APIs, telcos can empower the creation of innovative 5G applications.

Caution: Possible Translation Loss

Network APIs depend on modularity, openness and flexibility – something that was not easy to find in the legacy models of many Telcos. So far. That is why open initiatives and a platform approach matter so much. Telcos would need to be open and collaborate and open up to the ecosystem at large (vendors, systems integrators, and enterprise developers) – now more than ever. As John Strand, Founder of Strand Consult, argues, telecom APIs were also a hot topic in 2024.

“We still have no documentation for how these APIs can increase telecom companies’ top and bottom lines. Without aligning on common standards for creating APIs that work seamlessly across global networks and ensuring a good supply of user-friendly, fully interoperable APIs (with proof points for enterprises), telcos could not tap the real power and possibility hidden in these APIs,” he says.

Singh also echoes the lack of globally accessible standardised APIs as a key challenge. “Without a universal standard, application developers struggle to consume telco network capabilities consistently and in a reusable manner,” he points out.

There are also other barriers ahead. Like limited API exposure across network functions, integration complexity with multiple CSPs and inconsistency in exposed network capabilities, Singh adds. “APIs are not uniformly available across all network functions provided by different Network Equipment Providers (NEPs)/Vendors, making it difficult to deliver high-level telco services to subscribers.”

Telcos (as the McKinsey report suggests) can start with simple APIs related to location and fraud prevention (relatively uncontroversial, easy to implement, and relevant to various industries or use cases). They can cover SIM swap, mobile gaming, ride-share apps, logistics, delivery for location verification, and social media networks for number verification.

Then there is another category—quality-on-demand APIs—for increased bandwidth for specific applications that could generate substantial revenue from connectivity. And then there are APIs for edge computing, cloud, and ICT markets. Telcos can opt for a model that works best for their phase of technology-transition, market potential and region. For example, would they go for an aggregated model, like Communications-Platform-as-a-Service (CPaaS) players, where it is easy and affordable for developers to access APIs? But here, the model may relegate telcos to the supplier role, making them depend on distribution deals with aggregators and build novel, value-additive solutions on top of the aggregated APIs.

The next choice is a Federated model, where operators orchestrate behind the scenes without the help of a third-party provider (e.g., payment-related APIs). Here, telcos can seek a larger role in the ecosystem. However, they would have to invest further in building their developer platforms.

It is crucial to recognise that no single company can accomplish this alone; Khurana argues that it requires an ecosystem of collaborative efforts. “Developers must articulate their needs, while CSPs must develop systems and platforms to support these demands. Infrastructure vendors also have a pivotal role, leveraging networks as code platforms to simplify access to network APIs. These platforms act as bridges, facilitating enhanced collaboration, innovation, and mutual growth, enabling everyone to harness the full potential of 5G networks.”

Telcos must start pragmatically exploring this area. They could be just the ‘Abracadabra’ spell Telcos need today as they wade through the deserts of poor margins, falling ARPUs, hyperscaler dominion and infrastructure issues. Singh adds that APIs let CSPs monetise their networks in new ways, empower developers, and create better customer experiences. “This way, CSPs don’t just provide connectivity—they become the backbone of an entire digital ecosystem.”

As Kechiche also notes, from an end-user perspective, Network APIs enable personalised services by dynamically adjusting network performance for activities like gaming or streaming, support seamless integration of network capabilities into third-party applications such as AR/VR and IoT, and foster faster innovation by empowering developers to create tailored services that meet evolving consumer demands. So, APIs are not just a win-win but a win-win-win for all.

It is better to learn this language soon than to miss this bus that takes everyone to a good place.

Armed with all these factors and alert about the challenges highlighted so far, Telcos can start packing their bags for their journey into the new cities they are calling now. Tossing in the API translation app or language guide while they throw new socks and shoes in that bag is better. Godspeed!