Ericsson has announced a key milestone in the company’s strategy to create a global network platform business with network APIs. Ericsson and Deutsche Telekom (DT) are launching a commercial partnership to offer communication and network APIs to developers and enterprises.
Building a global platform to expose advanced 5G capabilities, such as Quality on Demand, speed, latency and location, through easy-to-consume network APIs is a key component of Ericsson’s enterprise strategy. This will allow developers and enterprises to integrate network features into their applications, which will accelerate enterprise digitalization and create new ways for operators to monetize their network investments.
Telecom consultancy and research firm STL Partners predicts that the revenue opportunity created by mobile network APIs will grow to over $20 billion by 2028, which is directly addressable by Ericsson’s platform business. In addition, Ericsson estimates vastly higher revenue opportunities for operators to be realized through new use cases based on network APIs. This will fuel investments in mobile infrastructure to meet the growing demand for advanced network capabilities.
Börje Ekholm, president and CEO of Ericsson, said, “Wireless networks have been key in digitalizing consumers. With the capabilities of 5G, enterprises can now leverage mobility as well to transform their businesses. Through network APIs, developers and enterprises get easy access to the advanced capabilities of the network to develop entirely new use cases. By creating a global platform business, Ericsson is redefining the industry and creating new ways to innovate through the network.”
A key component in building the global platform is Ericsson’s acquisition of Vonage with its Communications Platform as a Service (CPaaS) capabilities and developer community. The announcement represents an industry milestone where Deutsche Telekom will offer a portal for APIs powered by Vonage.
“For operators, the API business will open up additional revenue possibilities, which will further enhance the future network buildout. We are thrilled to support DT as they launch communication offerings to enterprises by providing network APIs to the developer community,” noted Ekholm.
Tim Höttges, CEO of Deutsche Telekom, said, “At Deutsche Telekom, we are proud to be among the first network operators to make our network APIs available commercially, together with our valued partner Ericsson. Our network is the very foundation of our company. By opening it up, we are creating new ways for customers and developers to generate value for their business. APIs are a key strategic focus for Deutsche Telekom, underlined by our key role in the foundation of the CAMARA alliance, which aims to make standardized APIs available internationally.”
Under the brand ‘MagentaBusiness API’, Deutsche Telekom will offer access to Vonage communications APIs that are currently available as well as new network APIs. The commercial launch is a world-first in the commercialization of network APIs, with a direct interface to Deutsche Telekom’s mobile network.
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