Turning APIs into revenue for the connected vertical markets

Commercial context

The connected vehicle market keeps growing — but monetizing it remains a challenge. Automotive OEMs need low-latency, cross-border services that work reliably. CSPs, meanwhile, need a scalable way to turn network APIs and edge infrastructure into new revenue.

Today, most operators rely on custom integrations and region-specific provisioning. These one-off models are hard to scale, expensive to maintain, and slow to roll out. The GSMA has estimated that 39% of automakers’ IT resources are consumed by building custom network integrations.

Studies also show that fragmented integration can inflate maintenance work by up to 50%, driving commensurate increases in software upkeep costs. Edge services like V2X safety alerts or real-time HD map syncing often stay in pilot mode, not because the tech isn’t ready, but because the business model isn’t.

The solution

The 'Monetizing federated connectivity for automotive OEMs' Catalyst resolves this by introducing a usage-based, federated architecture. The project has set up a multi-operator edge environment, where OEMs can request compute and connectivity services through a single, unified interface. This federated multi-access edge computing (MEC) architecture is underpinned by a 5G standalone core network, and the solution employs a local-user plane function (UPF) for local breakout.

Vodafone Procure & Connect (VP&C) acts as the federation broker and roaming hub. It matches service requests to optimal infrastructure across operators and regions. VP&C enables slice allocation, manages partner onboarding, and enforces SLA compliance in real time. In the Moonshot Catalyst and demo, it supports a mobility service provider like Toyota. It also addresses use cases defined by the Automotive Edge Computing Consortium (AECC). NTT DATA, Netcracker, and Xacria manage orchestration and API abstraction across the full end-to-end chain. They deploy each edge request to the correct location with the appropriate resources.

The system uses TM Forum and CAMARA APIs to expose, provision, and meter services. TMF633 handles service catalog publication, TMF639 tracks resource availability, and TMF641 and TMF652 manage ordering and deployment. CAMARA APIs support real-time metering and SLA enforcement. Future phases will add TMF931 and TMF936 to automate billing and inter-operator settlement. GSMA Open Gateway Federation allows the capability to be served by the best MEC available in a certain area.

In practice, this setup supports a range of real-world automotive scenarios. V2X safety alerts are delivered at low latency via local MEC nodes. Platooning services synchronize vehicles on the move using distributed compute. High-definition map updates synchronize delta changes in near real time, and software updates deploy directly to in-vehicle systems over the air. Each of these runs on containerized applications, provisioned on demand and billed according to usage — whether that’s per API call, compute cycle, or session.

OEMs access all of this through a unified portal. They avoid negotiating separate deals for each market or customizing for every operator. Instead, they build once and deploy globally, with clear pricing and consistent service levels.

This architecture also supports industrial IoT, real-time AR and VR applications, and emergency response systems. Cities can stream sensor telemetry, manufacturers can run control loops at the edge, and first responders can spin up drone video streaming in the field. The billing model adapts to each use case — charging by minute, device hour, or data volume — with no need for upfront infrastructure investment.

Wider application and value

Exposing services through standard APIs means CSPs shift their edge infrastructure from capital expense to revenue engine. This model turns on-demand services into recurring revenue without requiring operators to rebuild infrastructure. Instead of creating new offerings for each sector, CSPs expose core capabilities through APIs, then meter, rate, and bill automatically.

This shift is essential to capitalize on the growing API market, which GSMA Intelligence forecasts will generate $12 billion in annual revenue by 2030. Even a modest 3–5% ARPU uplift could bring millions in new revenue to individual operators. Because the system uses federation and standard APIs, CSPs can onboard new partners quickly. This is without repeating the integration work each time.

It also streamlines operations. By replacing manual provisioning with API-driven orchestration, CSPs can shorten rollout cycles and reduce integration overhead. Field data points to a 10–15% cut in integration costs and a 20% improvement in time-to-market. Automated billing ensures CSPs capture value with fewer delays and less leakage.

This architecture supports energy efficiency too. Moving workloads closer to users avoids unnecessary backhaul, which cuts power consumption significantly. In some scenarios, the shift saves more than 50% of energy use per square kilometer. That benefit helps operators meet performance goals and environmental targets simultaneously. But perhaps the most meaningful change lies in how services are consumed. Automotive developers, for example, no longer need to negotiate region-by-region access or build custom integration layers. Instead, they can access reliable, low-latency connectivity through a unified interface — with clear pricing and fast deployment.

The value here isn’t abstract. CSPs can plug real services into a working framework, roll them out quickly, and get paid for what’s used. No reinvention, no patchwork integrations — just a clearer, cleaner way to do business at the edge.