Next steps for network APIs

Network APIs have gained momentum since the GSMA Open Gateway initiative launched in 2023, as telcos seek new ways to monetize their networks. But to attract developers and for the new ecosystem to scale, there is more work to do to make APIs relevant and easy to use, such as standardizing commercial models, consent management and process automation.

Analyst estimates of the revenue opportunity from network APIs themselves as well as related services vary widely. McKinsey, for example, estimated in February 2024 that network APIs could generate connectivity and edge computing revenues of $100 billion to $300 billion in the next five to seven years. Analysys Mason, meanwhile, estimates that enterprise and consumer spending on CAMARA-based network APIs will reach $7.6 billion by 2030.

All depends on the commercial models the industry succeeds in building.

Unlocking the next wave of APIs

“Exposing APIs is not such a technical feat, but what is difficult is for all the telcos to do it at the same time, following the same pattern and agreeing on commercial models… That’s the complexity,” says David del Val, Global Director of Open Gateway at Telefónica.

These issues have largely been resolved for security and fraud prevention APIs, such as SIM Swap and Number Verification. This can be seen in the number of operators that have launched these APIs.

For example, TikTok has started to replace SMS OTP with the Number Verification API in some markets in partnership with Telefónica.

But beyond these “low-hanging fruits”, APIs that use location data or any data with privacy protection requirements need additional security and compliance assurances. Telcos must be able to verify the developers and how they want to use this data as well as enabling customers to give permission.

“An industry-grade, end-to-end consent management platform is now imperative,” says Peter Arbitter, Chief Commercial Officer at Aduna, the network API joint venture between Ericsson and some of the world’s biggest telcos.

Open Gateway, the Linux Foundation CAMARA project and TM Forum are working on privacy and consent frameworks related to network APIs.

“The innovation of Open Gateway [and TM Forum Operate APIs] is the ability to expose this kind of API in a way that is compliant with privacy laws and our own security requirements,” says del Val, adding that previous APIs did not scale because they did not have this standard and automatic mechanism.

While the components are available to build a consent architecture for more advanced network APIs, del Val said not many telcos have implemented it. “Most telcos now are busy implementing the simpler APIs that will bring good revenue, and for the APIs that require consent and lengthy legal discussions, they are working on it,” he says.

The role of Operate APIs

TM Forum Operate APIs not only address privacy management but also have a crucial role in the network API ecosystem – they simplify and automate processes that make standard CAMARA APIs easier to use, which ultimately, spurs developer take-up.

Operate APIs are adapted from TM Forum’s existing Open APIs and allow the integration of channel partners and operators to automate the end-to-end process for CAMARA API commercialization, explains Olivier Arnaud, Enterprise Architect at Orange. These processes include product catalog discovery, customer and application onboarding, product ordering, and usage reporting.

“With Operate APIs, all operators implement the same processes the same way, so channel partners have a smooth integration with all operators,” says Arnaud.

TM Forum has developed two Operate APIs so far, one for product catalog and another for onboarding and ordering. The group’s target is to deliver the “product usage” Operate API by the end of this year, which enables reconciliation of CAMARA usage reports between channel partners and operators. The GSMA Open Gateway project will then set the 2026 priorities for Operate APIs, which could include billing reporting and problem ticketing.

“Operate APIs are fundamental to the ability of network APIs to scale and support automation,” says Arbitter, whose organization Aduna recently became a TM Forum member.

In an important step for standards interoperability and network API adoption, the GSMA and TM Forum introduced a unified conformance certification program in June at DTW25 Ignite. This provides a single process for certifying Operate APIs and CAMARA Service APIs. Telefónica is the first operator to receive joint certification for its in-production Operate APIs.

Breaking down barriers

According to Aduna’s Arbitter, the main barrier to new revenues is the “lack of co-ordinated, standardized consent management and commercial models”.

The industry has not yet landed on a unified approach to API pricing while “siloed developer experiences” and complex integration also impede widespread adoption. “Agreement on pricing and service-level standards is a must. Without this, global customers face fragmented contracts and unpredictable costs,” he says.

Aduna sees this as one of its key roles. As an aggregator, Aduna offers a single, global contract and service level agreement (SLA), standard pricing, and streamlined onboarding for sellers and buyers. “This co-ordinated approach fundamentally reduces friction for enterprises and developers, accelerating API ecosystem growth,” says Arbitter.

Rick Lievano, Worldwide Chief Technology Officer for Telecommunications at Microsoft, also views the lack of standard API pricing models across operators as a challenge.

Microsoft recently partnered with Aduna, bringing its Azure platform and Marketplace to the network API community. CAMARA APIs will be offered as native Microsoft services via partners in Azure Marketplace.

“To simplify the complexity of embracing a commercial model for GSMA Open Gateway-based network APIs, the telco industry must focus on harmonization, abstraction and ecosystem alignment. One of the most effective strategies is enabling unified billing through platforms like Azure Marketplace, where APIs can be tagged as ‘transactable’,” says Lievano.

He also notes that aggregator platforms such as Aduna, Infobip and Vonage, help to reduce fragmentation by bundling APIs from multiple operators, offering developers more choice and competitive pricing.

Lievano also flags “uneven” API rollout as another significant hurdle. Not all operators that have backed Open Gateway have launched network APIs. “This fragmentation undermines developer confidence… It’s hard to get buy-in from developers unless most/all operators in their specific regions of interest are live,” he says.

Developer appeal

Most of the work on network APIs has focused on the “supply side” – that is, operators figuring out what capabilities or information can be exposed via an API, explains Appledore’s Curran. “The big challenge is to connect that with real world problems that people who develop business applications would find really useful and valuable enough to pay for… That will also mean ensuring that API offers are packaged in a way that makes them easy to use, and easy to understand,” he says.

As for the next steps, telcos now need feedback from the “commercial attempts to use APIs” because “a ‘good’ API is one that is used… Wherever there is visible, significant commercial traction is what will shape the technical direction,” says Curran.

“For global scale, all the pieces need to be in place: not only the APIs, but the means of billing for them, checking performance, managing any impacts on network capacity, plus all the developer contact and onward refinement, monitoring and tuning,” he adds.

Meantime, the industry continues to build a telco API ecosystem with the hope of enabling additional network monetization and revenue growth.

“The next phase of network APIs hinges on collaboration, automation and consent management at scale,” says Arbitter. “Through industry initiatives like Aduna and continued evolution of Operate APIs, technical and commercial complexity can be overcome, unlocking new revenue streams and accelerating ecosystem growth.”