Lucky La Riccia, Vice President and Head of Cloud Software and Services at Ericsson Middle East and Africa, explores how 5G network APIs are unlocking unprecedented opportunities for developers, enterprises, and service providers, enabling innovation and creating new revenue streams.
Digitalisation is a driving force for positive change around the world. The previous generation of mobile technology digitalised the consumer and gave rise to the app economy. Now with 5G, we have the potential to accelerate major trends shaping our society, such as the transition to clean energy, the establishment of resilient supply chains and the widespread adoption of industrial automation. To ensure this progress continues at pace, it is crucial to enable application developers to benefit from the most powerful elements of 5G networks, such as extreme low latency, lightning-fast speeds and precise location services.
Network application programming interfaces (APIs) allow developers to easily access advanced 5G capabilities, such as differentiated connectivity, location, security and network insights, to enhance existing solutions and develop new ones. These standardised programming interfaces enable applications and mobile networks to communicate with each other.
The prospects of network API are enormous. According to estimates by McKinsey & Company, the value of network APIs worldwide over the next five to seven years will reach USD 10-30 billion. Meanwhile, Communication service providers can unlock USD 100-300 billion in additional connectivity and edge computing-related revenues.
Developers expect the experience of accessing and creating applications through network APIs to be similar to using communications APIs via Communications Platform-as-a-Service (CPaaS), which provides tools for easily integrating communication capabilities, such as SMS, chat, voice or video calls, into various software. By evolving CPaaS into a network platform that also offers network APIs, service providers can unlock opportunities to monetise their network investments and empower millions of developers and enterprises to easily create enhanced applications and services.
At Ericsson, we are on a journey to building a new market for network APIs that will help spur the next level of digitalisation. This will allow the operators new ways to monetise the networks and help redefining the telecom industry. Vonage, which is a subsidiary of Ericsson is a key part of this strategy, and we have a great team ensuring the executing on this current business.
We continue to build the future of network APIs, supported by a global community of 1.6 million developers. This community is central to our growth strategy, which aims to unlock unique network features for both enterprises and developers through APIs. We believe advanced network capabilities will be crucial in driving the digitalisation of enterprises and society.
Network APIs have become a dominant topic at major global tech events, such as MWC in Barcelona, and are seen as a key initiative for monetising 5G networks. Ericsson’s partnerships with some of the world’s largest operators, including Deutsche Telekom, Verizon, AT&T, Orange, T-Mobile, and Vodafone, serve as powerful proof points that we are shaping this market. These groundbreaking partnerships have opened their networks, making advanced network capabilities easily accessible through a global platform for combined network APIs.
The API platform creates new ways for service providers to monetize their network investments. This cutting-edge experience of network APIs is powered by the integration of 5G, amplifying the connectivity to create a seamless and immersive digital landscape, setting the stage for a new era of connectivity that redefines engagement and experiences in the digital age.
This is how 5G was intended to be used – as an innovation platform for enterprises and society. Through harnessing the untapped potential of network APIs and developers’ creativity, we are accelerating digitalisation and reimagining the future of connectivity.
With our deep technical expertise and vast ecosystem, Ericsson is uniquely positioned to unlock new revenue streams for network operators and bring forth groundbreaking use cases. By offering millions of developers seamless access, we are empowering the industry to fully capitalise on the network API opportunity, driving growth and innovation on a global scale.
In our recent paper, “Monetizing Network APIs: A New Frontier for CSPs,” we delve into the transformative role of Network APIs in the telecom industry. We emphasise their potential to drive innovation and explore their impact on the industry’s future.
By fostering collaboration and leveraging the power of APIs, we can unlock new value, drive digitalisation, and shape a future where connectivity and innovation go hand in hand. Together, we are poised to transform the digital landscape and redefine the possibilities for industries and society at large.
Image Credit: Ericsson
