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Monetizing network APIs: A new frontier for CSPs

Monetizing network APIs: A new frontier for CSPs

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Monetizing network APIs: A new frontier for CSPs

Network APIs are designed to share network capabilities with external applications, aiming to enable monetization of CSP networks by offering new, easily accessible service APIs to software developers. Prioritizing APIs that add significant value across various use cases is crucial.

Introduction

CSPs can expose network capabilities either directly through local service exposure or via aggregators, depending on the specific use case and begin monetizing their 4G and 5G non-standalone networks, thereby accelerating their transition to 5G standalone and enhancing the capabilities of programmable networks.

 This paper highlights the importance of network exposure as a cornerstone for new monetization models that support ecosystem applications and verticals through global industrial APIs. It also examines two primary exposure models that service providers can adopt and details how Ericsson can support in leveraging these models for effective network monetization.

The paper also examines examples of network APIs having interest of CSPs in emerging markets while drawing awareness of encountered gaps and critical considerations required to synergize industry and market adoptions of implied use cases

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Monetizing network APIs

Key highlights

  • Role and importance of APIs in telecommunications: APIs act as a vital communication bridge between different applications in the telecommunications industry, allowing seamless interoperability. By exposing network capabilities via APIs, CSPs can monetize their services by offering new, easy-to-consume service APIs to software developers, thus creating new revenue streams and business models in both 4G and 5G networks.
  • Challenges and evolving API market for CSPs: Despite the potential of APIs, CSPs face challenges in the API market due to varying market dynamics and use case demands across different regions. The evolution towards more integrated network capabilities, like on-demand quality of service and enhanced security features, is crucial. However, CSPs struggle with forming necessary partnerships and ensuring consistent service quality, posing barriers to monetizing these capabilities.
  • Strategic API exposure models and industry collaboration: The telecommunications industry is exploring two primary models for API exposure—local network exposure and aggregator exposure. Local exposure allows direct interaction with network functionalities, while the aggregator model centralizes access across multiple CSPs, simplifying management for global application providers.  
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