Network APIs: The Next Frontier in the Journey from Telco to Techco

Network as a Service (NaaS) APIs represent a significant shift for Mobile Network Operators (MNOs), enabling them to maximize the value of their existing network resources while creating new revenue opportunities.

By adopting a more technology-driven approach, MNOs can provide enhanced services to enterprises and subscribers, ultimately leading to a more secure and seamless user experience.

This transition not only fosters greater innovation within the telecom industry but also strengthens customer engagement and redefines the role of MNOs in an increasingly digital world.

The Telco-to-Tech-Co Imperative

The telecommunications industry stands at a pivotal crossroads. For decades, telcos have been the backbone of global connectivity, delivering voice, data, and messaging services with remarkable reliability. However, the rise of digital-native tech giants—think Amazon, Google, and Microsoft—has shifted the landscape.

These companies have leveraged their agility, software-driven innovation, and customer-centric models to capture value far beyond what traditional telcos have achieved with their infrastructure-heavy businesses. To remain relevant and competitive, telecommunications companies must evolve from mere connectivity providers into technology-driven enterprises—or “tech-cos.” At the heart of this transformation lies a powerful enabler: Network APIs.

Historically, telcos have operated as utility-like entities, focusing on building and maintaining physical networks—towers, fiber, and spectrum—to ensure seamless communication. While this model has sustained them through the eras of 2G, 3G, and 4G, the advent of 5G and the digital economy has exposed its limitations.

Customers, developers, and enterprises no longer see value solely in raw connectivity; they demand programmable, flexible, and intelligent services that integrate seamlessly into their digital ecosystems.

This shift has sparked a profound realization: telcos must monetize their networks beyond traditional subscription models. The journey from telco to tech-co is about reimagining the network not just as infrastructure, but as a platform—a dynamic, developer-friendly ecosystem that unlocks new revenue streams, fosters innovation, and positions telcos as key players in the digital value chain. Network APIs are the linchpin of this transformation.

What Are Network APIs?

Network APIs (Application Programming Interfaces) are standardized, software-based interfaces that expose telco network capabilities—such as location tracking, quality of service (QoS), authentication, billing, and device management—to third-party developers and enterprises.

Unlike the closed, proprietary systems of the past, these APIs allow external applications to interact with the network in a controlled, secure, and scalable way.

Think of Network APIs as the bridge between the telco’s vast, complex infrastructure and the agile, innovation-driven world of software development. For example:

• A ride-sharing app could use a Network API to verify a driver’s identity via SIM-based authentication.
• A gaming company could tap into QoS APIs to dynamically allocate low-latency bandwidth for a seamless multiplayer experience.
• An IoT provider could leverage location APIs to optimize fleet management in real time.

The GSMA’s Open Gateway initiative and the Linux Foundation’s CAMARA project are accelerating this trend by standardizing Network APIs across operators, ensuring interoperability and simplifying adoption for developers globally.

Peter Arbitter, formerly of Deutsche Telekom but now the chief commercial officer at joint venture Aduna, discusses the development of the network API sector, how this could enhance the potential of digital service providers, and what needs to happen next.

Why Network APIs Are the Next Frontier

Unlocking New Revenue Streams

Telcos have long struggled with commoditization, as over-the-top (OTT) players like WhatsApp and Zoom siphon value from their networks without contributing to infrastructure costs.

Network APIs flip this dynamic by enabling telcos to charge for premium capabilities. For instance, offering a “5G slicing API” could allow enterprises to purchase tailored network performance for mission-critical applications, creating a lucrative B2B2X (business-to-business-to-everything) model.

Empowering Developer Ecosystems

Tech-cos thrive by cultivating developer communities—think AWS or Twilio. Telcos can follow suit by exposing Network APIs through developer portals, complete with documentation, SDKs, and sandbox environments. This democratizes access to telco-grade capabilities, inviting startups, enterprises, and even competitors to build innovative applications atop their networks.

Leveraging 5G and Beyond

5G isn’t just about faster speeds; it’s about ultra-low latency, massive device connectivity, and network slicing. These features are meaningless without a way to harness them programmatically. Network APIs translate 5G’s technical prowess into practical, market-ready solutions, bridging the gap between infrastructure investment and ROI.

Enhancing Customer Experience

In a tech-co world, customer experience reigns supreme. Network APIs enable telcos to integrate their services into the broader digital lives of consumers and businesses—whether it’s embedding secure payment options into e-commerce platforms or delivering real-time network diagnostics to enterprise clients.

Challenges on the Horizon

The promise of Network APIs is immense, but the path forward isn’t without obstacles:

• Standardization and Interoperability: Fragmented API implementations across operators could deter developers. Initiatives like Open Gateway must succeed in creating a unified framework.
• Security and Privacy: Exposing network functions increases the attack surface. Telcos must balance openness with robust security protocols and compliance with regulations like GDPR.
• Cultural Shift: Transitioning to a tech-co requires a mindset change—from siloed, hardware-centric operations to agile, software-driven collaboration. This demands new talent, processes, and partnerships.
• Competition: Hyperscalers and OTT players are already eyeing this space. Telcos must move quickly to establish themselves as the go-to providers of network-based APIs.

The Road Ahead: A Call to Action

The journey from telco to tech-co is not optional—it’s existential. Network APIs represent the next frontier, a chance for telcos to reclaim their relevance in a software-defined world. To succeed, they must act decisively:

• Invest in API Platforms: Build scalable, developer-friendly API marketplaces with clear pricing and support.
• Collaborate Globally: Embrace industry consortia to ensure consistency and scale.
• Innovate Aggressively: Experiment with use cases—from smart cities to telemedicine—to demonstrate value.
• Educate the Market: Showcase how Network APIs solve real-world problems, winning over developers and enterprises alike.

The telcos that master Network APIs will not only survive the digital upheaval but thrive as indispensable architects of the future. Those that hesitate risk being relegated to the sidelines—mere pipes in a world of platforms. The frontier is open; the time to cross it is now.

Featured Experts

To explore these opportunities, a panel of industry leaders shared their insights on the evolving landscape of telecom and network APIs with MEF’s Doug Makishima. This all-star panel includes

• Ken Wee, SVP of Partnership and New Business at Bridge Alliance,
• Mark Cornall, Technical Director at GSMA,
• Viktorija Radman, Telecom Business Director at Infobip,
• Eddie DeCurtis, CEO and Co-Founder of Shush, and
• Alicia Miller, Product Management Lead for Network APIs at Verizon.