Telecoms heavyweights come together to form network API venture

América Móvil, AT&T, Bharti Airtel, Deutsche Telekom, Orange, Reliance Jio, Singtel, Telefonica, Telstra, T-Mobile, Verizon and Vodafone are the founding telcos, along with kit maker Ericsson.

That's an impressive roster, one that's bound to attract the attention of its intended audience of developers, hyperscalers, communications platform-as-a-service (CPaaS) providers, systems integrators (SIs) and independent software vendors (ISVs).

Indeed, Ericsson-owned Vonage and Google Cloud have already agreed to partner with the new venture, providing access to their respective ecosystems of millions of developers as well as their partners.

"This pioneering partnership will enable businesses and developers to use the collective strength of our global networks to develop applications that drive growth, create jobs, and improve public services," said Vodafone CEO Margherita Della Valle. "Just as 4G and smartphones made apps integral to our everyday life, the power of our 5G network will stimulate the next wave of digital services."

All the APIs on offer will be based on CAMARA – the open source API project led by the GSMA and the Linux Foundation.

"With a broad-based, interoperable API platform, we're giving innovators a new global toolbox where the world's best app developers can create exciting user experiences at scale," said Jeremy Legg, CTO of AT&T. "This high-performance mobile ecosystem will usher in a new era of greater possibility for customers and mobile users around the world."

Similarly-effusive quotes were served up by senior execs from all the other participants.

Much has already been made of the industry's decision to open up and (attempt) to monetise network APIs. Optimistic estimates, like the one proffered by McKinsey, claim that network APIs represent a $300 billion opportunity for telcos between now and the end of the decade.

However, some of the more wary, like Kearney, have warned that all will be for nought without proper industry coordination and collaboration to drive developer uptake.

That's what this new venture aims to tackle.

"Today's announcement is an important step in that direction by addressing one of the major challenges for developers seeking to engage with mobile operators – sector fragmentation," said Kester Mann, director of consumer and connectivity at CCS Insight. "In the past, the telecom industry – with many competing players each deploying different strategies for their specific regions – has struggled to present a united and coherent front."

Despite their dubious track record, Mann reckons this particular venture stands a better chance of success than most, thanks to the urgent need for operators to earn a return on 5G, and due to the involvement of major technology partners in the form of Google and Ericsson.

"There should be fresh optimism that the new company unveiled will enjoy more success than previous failed ventures," Mann said.

We spoke to Niklas Heuveldop, CEO of Vonage, and Peter Arbitter SVP of Magenta Business API (MACE) at DT, about the news. “We have a common concern that we’ve made it difficult for developers to program on wireless networks,” said Heuveldop, stressing that this initiative is all about removing any friction and roadblocks that may be preventing developers taking full advantage of the programmable networks opportunity. He added that, for Vonage, this means a smaller piece of a bigger network API pie.

DT partnered with Ericsson to launch MACE a year ago, but it soon became clear that piecemeal API initiatives weren’t going to cut it. “If just one of us opens up our networks that doesn’t offer much to developers,” Arbitter told us. We asked him how this initiative is different from CAMARA and Arbitter answered: “CAMARA was the concept and this is the execution.”

The operators aim to formally establish their new venture by early 2025, subject to regulatory approvals. Under the proposed structure, Ericsson will control 50 percent, while the operator members will hold the remaining 50 percent between them. There is also a standing invitation for any other operators that wish to join.

"Today is a defining moment for the industry and milestone in our strategy to open up the network for increased monetisation opportunities," said Ericsson CEO Börje Ekholm. "A global platform built on Ericsson's deep technical capabilities and with a comprehensive ecosystem, that provides millions of developers with a single connection, will enable the telecom industry to invest deeper into the network API opportunity, driving growth and innovation for everyone."

Ericsson being the biggest single shareholder in a venture that includes many of the world's biggest telcos could spell trouble for Nokia.

The Finnish kit maker is pushing ahead with its own API strategy, centred on its Network as Code platform. It's going well so far, having established partnerships with Orange, Telefónica, Turkcell, Infobip and Google in Q2 alone.

While open network APIs will work on compatible hardware from any vendor – whether it's Nokia or Ericsson's – this new venture represents an opportunity for Ericsson to play a central role in the emerging ecosystem. If and when this new effort gathers pace, Nokia might be left struggling to keep up.

But in our interview, Heuveldop and Arbitter were very keen to stress that this initiative is open to everyone and it’s about unlocking the potential of networks, as opposed to generating revenue for the venture’s shareholders. They had to start somewhere but the impressive initial roster of companies does make the absentees all the more conspicuous. It will be interesting to see if other vendors get involved and even more so if there is any Chinese representation.