10/01/2024 | News release | Distributed by Public on 10/01/2024 08:50
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Beyond Vendor Initiatives, Operator Organizations Are Also Looking to Network APIs for Growth Opportunities |
NEWS |
In August 2024, the Bridge Alliance announced that its Application Programming Interface (API) exchange platform, Bridge Alliance API Exchange (BAEx), is now supported by 13 Communication Service Providers (CSPs) in the Asia-Pacific region, including large Southeast Asian (SEA) operators such as AIS, Globe Telecom, Maxis, Singtel, and Telkomsel. The BAEx platform will provide software developers with universal access to participating operators' network information to develop new and innovative mobile applications and services.
This trend of API collaboration is also echoed around the world, with Ericsson recently announcing a joint venture with multiple global operators, such as América Móvil, AT&T, Airtel, Deutsche Telekom, Orange, Reliance Jio, Singtel, Telefónica, Telstra, T-Mobile, Verizon, and Vodafone, to sell common network APIs to a wide range of developer platforms in September 2024 (see ABI Insight "Ericsson Becomes an Aggregator and Throws Down the Gauntlet on Vendor API Strategy" for a more detailed analysis on this development). Separately, Nokia has also announced a partnership with Google to run the former's Network as Code platform on Google Cloud to better target the Google Cloud developer community in June 2024. It is reported that Nokia's Network as Code platform is also gaining strong momentum, with the vendor having executed collaboration agreements with multiple global CSPs, such as BT, Deutsche Telekom, Orange, Telefónica, Telecom Argentina, etc.
Regional versus Global Approach: Two Differentiated Strategies |
IMPACT |
While the Network Equipment Vendors' (NEVs) approach to network APIs is on a global scale, which makes sense given their global clientele base, the Bridge Alliance's strategy is much more regional focused. Therefore, the organization can leverage its strong regional experience and expertise to help Multi-National Companies (MNCs) overcome regional challenges, such as language barriers, cultural differences, and fragmented markets, which, in turn, enable rapid deployments of connectivity and Internet of Things (IoT) solutions.
Specifically focusing on the Bridge Alliance's BAEx platform, this initiative aims to build a sustainable network API ecosystem in the region by bridging the gap between enterprises, developers, solution partners, and CSPs. Beyond simply providing a network API platform, the Bridge Alliance also supports developers by providing API implementation assistance and creates opportunities for enterprises to work closely with CSPs to co-create new API use cases.
Given the overall complexity and heterogenous nature of Asia-Pacific countries, having a regional-focused platform, as opposed to a standard global one, could be a potential way to address more specific regional pain points, thereby encouraging greater adoption of network APIs among enterprises in Asia-Pacific.
Differentiation and Demonstrating Value Remain Key |
RECOMMENDATIONS |
As covered in ABI Research's Telco APIs: Market Sizing and Key Findings report (AN-6157), building and developing a robust developer community is a critical step to ensure the successful adoption of network APIs. ABI Research has been observing several partnerships between CSPs, NEVs, hyperscalers, and Communications Platform-as-a-Service (CPaaS) providers already taking shape. However, the key question still remains how can CSPs, NEVs, or aggregation platforms, such as BAEx, attract developers to use these network APIs, given the current existence of strong communication API incumbents such as Twilio and Plivo. Below, ABI Research provides some of our recommendations:
While previous telco API initiatives have fallen through the cracks, this could finally be the time for CSPs to realize the true potential of the technology. However, to do so, the telecoms industry needs to learn from its past mistakes and avoid significant fragmentation of the network API market. Instead, focus on strong collaborations and building a strong and sustainable network API ecosystem.