Mobile service users are becoming increasingly selective and eager to try out service applications that are worth their time and money. For CSPs, apps can maximize ARPU (Average revenue per user) by retargeting their users with add-ons and enriching their in-app experience.
To do so, apps need to diversify their monetization strategies beyond subscriptions and one-time purchases. Interestingly, adding AI features has resulted in increased revenue for service providers.
Moreover, the introduction of Application Programming Interfaces (APIs) has contributed immensely to the acceleration of the digital transformation journey across industries, including retail, healthcare, education, and finance among many others. CSPs need to identify APIs that can add value by enabling new applications and services and exposing them to the developer community. Bundling them into different business models and offering them at the right price are key ingredients needed to enhance profitability.
Also Read: How Ecosystem Players Are Shaping the Future of Technology
Facilitating Interoperability
Telecom networks are complex and require significant customization to meet diverse and evolving needs. To leverage 5G investments and improve return on investment (ROI) while providing better experiences for consumers, the industry must generate growth from new revenue sources through new services.
The open-source model, which promotes decentralized software development and open collaboration, has been crucial to the tech industry's development. In the communication industry, inclusivity is essential, making it imperative for startups and individuals to use free software to build solutions with minimal capital expenditure.
Open-source software is found everywhere. 90% of large companies use open-source software extensively in their operations, according to the latest annual survey by software support company, Red Hat. The very reason that companies such as Facebook, Amazon, Microsoft and Google came to fruition is because of open-source solutions.
Open-source solutions can serve as valuable resources for training smaller models used in various applications. Startups, enterprises, and governments should build customized models tailored to their specific goals. A key aspect of open-source solutions is that they are developed by experts, yet the framework allows anyone to scrutinize and improve the backbone. This collaborative approach fosters rapid innovation and ensures high-quality results.
Given the multi-faceted and highly distributed nature of telecom infrastructure, open-source solutions offer a unified approach that enables Communication Service Providers (CSPs) to address current and future use cases, including OpenRAN, next-generation Core (5G and beyond), cloud, and AI at the edge.
Additionally, open-source software powers Android, the world's most widely used smartphone operating system, and is utilized in video games and automotive software.
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Embracing Open Collaboration
By leveraging open-source projects, telecom operators can tap into the latest advancements and best practices developed by a global community of experts. In the UAE, e& UAE has consistently embraced these standards through the Open Digital Architecture (ODA) presented by TM Forum.
To streamline operations, minimize manual errors, and boost the quality of services, e& UAE launched a state-of-the-art Developer Portal, which provides free access to a suite of well-defined, standardized, and interoperable APIs. The portal serves as an arsenal for digital innovators to discover, explore, and utilize an extensive range of APIs in service management, customer management, product catalog, billing, and network exposure, creating cutting-edge solutions that drive the future of connectivity.
e& UAE’s broader ODA journey focuses on system decoupling and application simplification. By adopting open APIs, e& UAE is achieving simplified integration and interoperability within its systems, facilitating secure, standardized access to data and functionalities.
Similarly, in 2022, UAE telecom operator, du, launched open-source solutions to develop a cutting-edge blueprint for a private 5G network based on Open RAN (ORAN) technology. This initiative aims to revolutionize 5G private wireless deployments for operators and foster industry collaboration for edge infrastructure and application deployment, thereby unleashing the full potential of 5G.
Related: Huawei Commits to Building Trustworthy Open-Source Software Chain
The Open Compute (OCP) Telco Project collaborates with telecom companies and carriers as well as sub systems, software, board and semiconductor suppliers seeking to use data center infrastructure to deliver IT services. Technologists across industries participate in this community to create and improve designs to help companies transition from traditional or existing proprietary solutions to OCP solutions with interoperable, multi-vendor supplier support. Leading vendors, such as Huawei, Ericsson and Nokia have been long-term proponents of open-source solutions, contributing immensely to the developer community.
According to research conducted by McKinsey, GSMA Open Gateway and others, network API initiatives will unlock significant value for the telecommunications industry and businesses using 5G networks over the next six years. It’s forecast that, if operators can expose more of their network APIs and innovations to enterprise developer and cloud provider communities, then they can unlock a potential USD 300 billion market opportunity by 2030. The GSMA Open Gateway initiative is focusing on how it can help members ramp up developer engagement in 2024 through new services and a focus on three go-to-market commercial channels for open API adoption.
For the next generation of technology, AI and VR are critical components. Ensuring access to leading AI solutions involves building them and establishing them as industry standards through sharing and ecosystem development. GitHub, the Microsoft-owned collaborative developer community, exemplifies this approach by enabling over 100 million developers to become AI engineers and build with industry-leading AI models. Developers can access models like Llama 3.1, GPT-4o, GPT-4o mini, Phi 3, and Mistral Large 2 via a built-in playground to test different prompts and model parameters, all while maintaining a commitment to privacy and security.
Also Read: Meta Expands AI Startup Program to Bolster Tech Companies
Considerations for Open-Source Architecture Implementation in the Telecom Sector
Cost Efficiency: Since licensing fees are non-existent in open-source solutions, software components tend to cost less.
Flexibility and Customization: Open-source architecture allows for greater flexibility, enabling telecom operators to adapt and innovate quickly by modifying the software according to their requirements.
Low-Risk Vendor Lock-Ins: As opposed to proprietary solutions, where operators become dependent on a single supplier for updates, support, and integration, open-source architecture minimizes this risk by providing alternatives and enabling greater control over the technology stack.
Security and Transparency: With increased scrutiny of the code, vulnerabilities can be identified and addressed, facilitating transparency and trust-building among stakeholders.
Regulatory Compliance: In a highly globalized ecosystem, in some regions, regulations may favor or require open standards and transparency. Open-source solutions can help telecom operators comply with such regulations more easily.
Also Read: Open Source, Open Horizons: Ground Stations Bring Space Closer to Earth
In Conclusion
In an increasingly digital-first world, open-source architecture in the telecom sector supports cost efficiency, customization, interoperability, and innovation while reducing vendor lock-in and enhancing security. Open-source solutions enable operators to stay competitive and agile amidst the dynamic and evolving nature of telecom networks.
Telecom Review Exclusive Analysis: APIs: Forging Global Connectivity and 5G Monetization
