Telcos race to monetise network APIs as industry shifts to platform models

Deshbandhu Bansal, COO – RevTech business at Comviva, plays a pivotal role in shaping strategic direction, driving profitability, and defining the product roadmap. Under his leadership, the RevTech portfolio encompasses the communication stack, CNPaaS, 5G API monetisation, and OTT monetisation for telcos. It serves over 100 telcos and processes over a trillion transactions annually.

Before joining Comviva, Bansal was a Technology Consultant at HP USA, where he worked with clients like T-Mobile, Starbucks, and Disney. His expertise lies in leveraging technology to solve complex business challenges and enhance operational efficiency across industries. In this interview with Pratima Harigunani, he explores the evolving landscape of network APIs. Excerpts:

Are Network APIs relevant for the future telecom industry?

It is an understatement to question the credibility and potential of Network APIs, given the market insights from leading analysts like McKinsey, BCG, and STL Partners that have been making a buzz for the past two years. The Network API revenue potential is expected to grow to USD 34 billion by 2030 at a CAGR of 60% worldwide. 

We have rarely seen the whole industry rally behind the cause of universalising, simplifying, and standardising the APIs, including the GSMA, CAMARA, TM Forum, 3GPP, ETSI, MEF, and 5GFF. With the 5G network APIs exposure, every telco is evaluating the potential and taking steps towards announcing partnerships and Proof of Concepts with their enterprise customers to explore the art of possible and a better network experience.

How crucial are shifts happening at levels like GSMA?

GSMA, being the flag bearer of innovation and bringing new ways of working among CSPs, started their Open Gateway initiative to promote the standardisation for access, adoption, and consumption of open APIs, bringing telcos together. Within just a few years of its launch, today, more than 50 operators spanning 240+ networks globally have joined the GSMA Open Gateway initiative. Spearheaded by TM Forum, GSMA, and CAMARA, The GSMA Open Gateway initiative offers a framework of universal API with their Meta release, bringing 25 APIs to the ecosystem.

What progress do you see in the industry? What has Comviva been doing in this area?

Across regions—from the Americas to Japan—we observe a growing interest among Tier-1 operators in exploring network APIs. Telecom players are testing the waters on use case readiness, adoption, and business viability.

Comviva has been actively involved in the Network API space for the past two years. Our journey began with an announcement at MWC 2022, followed by the commercial release of our network exposure platform, NGAGE CNPaaS, in 2024.

Is monetisation a challenge in this space?

Monetisation is a crucial aspect. Comviva provides a complete API monetisation stack as a white-label solution, allowing telcos to retain revenue instead of sharing it with aggregators, resellers, or third parties.

Our API Marketplace enables telcos to monetise not just communication and network APIs but also partner and third-party APIs. The platform streamlines enterprise and partner onboarding, offers a developer-friendly experience with API documentation and a sandbox for testing, and supports rating and charging for usage and subscriptions. Essentially, it allows any telco to operate as a ‘Marketplace.’

Are telcos ready to transition into platform-based businesses?

The shift has already begun, with Nokia, Ericsson, and Telefonica leading the way. Several telcos have launched network APIs for anti-fraud use cases in banking and security, offering services like number verification, SIM swap, device status, and device location APIs.

Commercial launches have been announced by Telefonica, KPN, Telenor, Vodafone, Deutsche Telekom, Orange, and BT. The recent Ericsson JV announcement further validates the industry’s readiness. Telcos are embracing open APIs, fostering developer engagement, and driving adoption through collaboration.

Is this shift feasible and inclusive for the entire global telecom industry?

To democratise network capabilities and drive adoption, GSMA Open Gateway enables members to sign up as Open Gateway advocates, promoting open standard interfaces. For instance, Comviva is an official GSMA Open Gateway Channel Partner committed to creating a common interoperable network that supports cross-region use cases. The past three quarters have seen a surge in channel partners, with not just telcos but also aggregators, identity solution providers, and industry players stepping in to demonstrate compliance and support for open standard interfaces.

pratimah@cybermedia.co.in