Carriers See Open APIs as a Way to Monetize Their Assets

Making money has to be the goal when providers expose their application programmable interfaces (APIs), experts said during a Mobile World Live webinar on Wednesday. Open APIs are a growing focus of carriers (see 2404160065) and of the GSMA (see 2402260054). “Monetization is really the end goal,” said Peter Jarich, head of GSMA Intelligence. Operators need to expose network capabilities in a consistent way, he said. Consistency is “particularly important” because that leads to interoperability, he said. That allows carriers to “monetize those network capabilities that they built out in a transparent way” so that developers don’t have to go to every operator and “figure out how to integrate with them” and “start from scratch with every single operator they want to work with,” he said. When APIs are exposed consistently, you get the scale that’s attractive to developers, Jarich said. The industry is seeing “traction” since GSMA launched its API Open Gateway initiative last year (see 2302270069), he said. Carriers responsible for nearly 70% of worldwide connections are focused on open APIs, he said. Security is a top concern of providers, and it’s not surprising that many open APIs are focused on security and anti-fraud efforts, Jarich said. GSMA surveys show that operators aren’t just joining the open gateway initiative but are exposing their APIs, he said. Providers are building out fiber and 5G networks against the backdrop of challenging economic conditions and shrinking profit margins, said Ana Redondo, product strategy lead in the Networks Division at telecom tech company Amdocs. “There’s very intense competition worldwide,” she said. “It isn’t an easy environment to operate in,” she said. Carriers are trying to reduce costs and grow core revenues where possible, she said. 5G hasn’t worked as well as carriers hoped, but fixed wireless access “has proven to be very successful,” she said. Open APIs can put carriers “in a far more competitive position,” she said. Carriers have a lot of assets they can monetize in the data that they have, their data centers and edge capacity. Carriers are asking how they can expose everything they do as APIs, she said. It’s a “fundamental shift,” but it puts providers “closer to how the cloud vendors work,” she said.