The telecom sector is undergoing a significant transformation as GSMA seeks to enhance network APIs to fully realize the potential of 5G technology.
Initially, network APIs were designed to provide developers with access to advanced 5G features, thereby promoting innovation across various industries.
However, the majority of current applications have been limited to fundamental services such as authentication and fraud prevention.
While these functions are essential, industry analysts argue that a more substantial opportunity exists in utilizing APIs for industries such as automotive and aviation.
The Advancement of Network APIs in the 5G Landscape
GSMA seeks to enhance network APIs to broaden their application beyond conventional communication services.
The initial promise of network APIs was to unveil advanced 5G capabilities to developers, facilitating the development of groundbreaking applications.
Nevertheless, the predominant use cases today focus primarily on authentication, SIM swapping, and fraud prevention.
Although these services are vital, they fall short of realizing the ambitious vision of a $300 billion revenue potential, as estimated by McKinsey.
Henry Calvert, the head of network at GSMA, has expressed concerns regarding the sluggish advancement in this area.
He is keen to transition from basic authentication services to exploring revenue opportunities that capitalize on the full spectrum of 5G capabilities.
This shift has given rise to GSMA Fusion, an initiative dedicated to integrating network APIs into essential sectors such as automotive and aviation.
The Impact of 5G on Connected Vehicles
A key focus of GSMA Fusion is the automotive sector, particularly targeting Japanese manufacturers such as Toyota, Suzuki, and Honda.
These companies prioritize on-demand quality, which is essential for enhancing intelligent driving, high-definition mapping, and tele-operation capabilities.
As 5G technology advances, its potential to improve connected vehicles becomes increasingly evident.
For telecommunications providers, this presents a significant opportunity for revenue generation. Beyond merely earning from API transactions, operators can also benefit from the connectivity services that these advancements bring.
Calvert notes that approximately 70% of the market’s value will stem from new service-driven average revenue per user (ARPU). While consumer markets may be reaching saturation, the enterprise sector offers a promising avenue for growth.
Revolutionizing the Aviation Sector with Network APIs
In a similar vein, GSMA Fusion is investigating prospects within the aviation industry. A seamless integration of public, private, and non-terrestrial networks is essential.
Airlines require the prioritization of over-the-air data transfers to ensure efficient operations when aircraft land and need to transmit large volumes of data.
The primary challenge in this context is network congestion. Upon landing, passengers typically activate their devices, which can overwhelm the available bandwidth.
Implementing a structured network API framework can effectively manage this congestion by prioritizing essential data transfers over less critical consumer activities.
Such innovations have the potential to transform in-flight connectivity and enhance operational efficiency, positioning aviation as a promising field for network API deployment.
Open Gateway and CAMARA: Standardizing the API Ecosystem
The GSMA’s Open Gateway initiative, rooted in CAMARA, establishes a comprehensive framework aimed at standardizing network APIs.
The telecom sector has historically faced challenges related to standardization, with fragmentation resulting in operational inefficiencies. Open Gateway seeks to consolidate industry efforts, fostering a cohesive and scalable network API ecosystem.
While projects such as Aduna, a collaboration between Ericsson and leading telecom companies, aim to enhance API aggregation, concerns regarding market monopolization remain.
Some industry stakeholders, including Nokia, have opted for independent strategies, contributing to a more varied landscape. Concurrently, the Bridge Alliance, a coalition of telecommunications companies across Asia and Africa, is emerging as a competitor to Aduna.
Calvert recognizes the risk of fragmentation but asserts that commitment to Open Gateway and CAMARA can mitigate this concern.
He emphasizes the growing number of APIs certified under the GSMA framework, noting that 127 out of 220 commercially launched APIs have already received certification.
As the industry progresses, adherence to these standards will be essential for sustaining a unified network API ecosystem.
The Future of Network APIs in the 5G Landscape
The upcoming 18 to 24 months will be crucial for the commercialization of GSMA Fusion’s automotive and aviation applications.
Telecom operators must acknowledge the significance of these high-margin services, which can be implemented without necessitating an additional 5G rollout, instead optimizing the use of existing infrastructure.
As more telecom networks participate in the Open Gateway initiative, currently involving 72 operator groups and encompassing 284 global networks, momentum is increasing.
With 52 networks across 27 markets already providing commercial network API-based services, the industry stands on the brink of a significant transformation.
If executed effectively, this transition could unveil new revenue opportunities and enhance the long-term sustainability of 5G-enabled network APIs.
Expert Editorial Comment
Despite ongoing skepticism, the GSMA’s unwavering commitment indicates a hopeful outlook for network APIs.
By incorporating these technologies into lucrative sectors like automotive and aviation, the GSMA seeks to enhance network APIs.
The coming years will determine if these initiatives lead to substantial growth; however, it is clear that the telecommunications sector is making significant investments in network APIs to spearhead the next era of connectivity innovation.
