- Telcos are advised to adopt network application programming interfaces (APIs) to accelerate 5G monetisation and unlock new revenue streams through partnerships and innovative services, according to Sandeep Arora of Capgemini.
- Major telecom equipment manufacturers, including Ericsson and Nokia, are actively enhancing their API strategies, with market estimates suggesting that the value of network APIs could reach between $10 billion and $30 billion in the coming years.
What happened: Telcos leverage APIs for 5G monetisation
Telecom companies are increasingly focusing on network application programming interfaces (APIs) to enhance their 5G monetisation strategies. Sandeep Arora, VP at Capgemini, emphasises that an API-led approach enables telcos to unlock new revenue streams by fostering partnerships and developing innovative services. This is particularly vital as smaller companies often struggle to compete against larger players in the telecom market. By adopting APIs, these smaller firms can access mobile network capabilities, facilitating the creation of unique use cases, such as fraud prevention and on-demand data boosting.
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Major players like Ericsson and Nokia are already advancing their API strategies, indicating a positive shift in the industry. However, despite the potential benefits, many telcos have yet to fully penetrate the enterprise sector, hindered by challenges such as a lack of awareness and the high costs associated with 5G infrastructure. This situation calls for immediate action and strategic planning to harness the opportunities presented by 5G technology.
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Why this is important
The shift towards network application programming interfaces (APIs) represents a pivotal moment in the telecom industry, particularly as 5G technology continues to evolve. Sandeep Arora from Capgemini highlights that embracing an API-led approach not only opens new revenue streams for telecom companies but also empowers smaller firms to compete more effectively. This democratisation of technology allows innovative startups to develop applications that enhance customer experiences, such as real-time data analytics and fraud prevention.
The broader context reveals that while giants like Ericsson and Nokia are strengthening their API strategies, smaller companies often lag behind due to resource constraints. This is concerning, as the potential value of network APIs is projected to reach between $10 billion and $30 billion in the coming years. The emphasis on API integration is critical for telcos to remain agile and responsive to market demands. As the industry increasingly focuses on collaborations and ecosystem partnerships, the success of 5G monetisation could hinge on how well companies, both large and small, adapt to these technological advancements. This transformation will ultimately impact consumers by driving innovation and improving service offerings across the board.
