How to monetize network services with standardized APIs

Commercial context

CSPs are increasingly focused on collaboration with enterprise to deliver B2B2X propositions in transport, financial services, entertainment and other sectors. These partnerships generally make use of APIs (application programming interfaces) to share usage information and facilitate transaction settlements. To realize the full potential of this growing market, CSPs need to align service data objects (SDOs) so that third parties, such as enterprises and developers, can access relevant telecoms data in a uniform way. Without a clear demarcation of scope, it can be challenging to expose APIs to third parties.

The solution

This third phase of the Network service monetization through standardized APIs Catalyst is showcasing interactions between stakeholders in the API monetization ecosystem across multiple processes, including onboarding, requests for API access, the consumption of network APIs and the sharing of revenue (by exposing usage management APIs). By focusing on specific journeys, the Catalyst can help CSPs identify the revenue opportunity once a standardized API solution is deployed. In particular, the Catalyst is demonstrating how standardized quality-on-demand APIs can mitigate the connectivity challenges involved in the end-to-end remote control of a fleet of vehicles. The proof of concept integrates traffic controllers, mobility providers and CSPs to optimize the experience for end-users.

The Catalyst draws on APIs developed by TM Forum and CAMARA, the open-source project for developers to access enhanced network capabilities, and the GSMA Open Gateway architecture, to create an end-to-end solution for monetizing network capabilities. Earlier phases of this Catalyst explored the potential to use standardized APIs to increase network monetization, developing a reference solution that could be employed in the metaverse – interoperable virtual environments rendered in three dimensions.

Application and wider value

This phase of the Catalyst aims to demonstrate that CSPs can use quality-on-demand APIs to provide sufficiently robust connectivity to support autonomous and remotely controlled vehicles, helping to build regulatory and consumer confidence in this form of transport, which could ultimately represent a market worth US$3.5 trillion by 2040. For the telecoms industry, the deployment of standardized quality-on-demand APIs could help deliver a revenue stream worth US$3.6 billion per annum to CSPs by 2027. By that time, there could be 367 million connected vehicles worldwide, up 91% from 192 million in 2023.

Standardized APIs are crucial for CSPs to effectively expose their network capabilities to third parties: the demarcation and process definition for API exposure make it easier and more efficient for ecosystems to interact. In this way, this Catalyst is helping CSPs pursue a major growth opportunity: ABI Research has forecast the telco API market will expand significantly, to generate more than US$150 billion in annual revenue by 2030. “The project resolves serious challenges in connectivity and revenue for both mobility and telecommunication industries,” explains Massimo Banzi, Standardization Manager at TIM. “With a proven standardized integrated solution, we would enable both industries to achieve remarkable growth, as well as unblocking futuristic experiences for end-users.”