Navigating the network API ecosystem

The investments in 5G standalone (SA) networks have equipped Communication Service Providers (CSPs) with unprecedented capabilities from ultra-low latency to granular control over network quality. The challenge now is not technological capacity, but commercial execution. How do we translate network performance and intelligence into scalable revenue streams?

The answer might lie in Network APIs. By exposing network capabilities to developers and enterprises in the form of APIs, CSPs provide the foundation for high-value use cases that range from fraud prevention to telemedicine. However, to get a developer friendly API product to their intended customer, CSPs must cross some hurdles, not only technological but also commercial.

Backed by global initiatives like the GSMA Open Gateway, Linux Foundation’s CAMARA project, and TM Forum’s Open Digital Architecture (ODA), the Network API ecosystem represents a multi-billion-dollar opportunity. Projections vary, with some of the more optimistic ones showing that the market for API-enabled services could unlock up to $300 billion in additional revenue by 2030. To succeed, CSPs must create a new value network built on collaboration, aggregation, and a developer-first mindset.

The four layers of the API ecosystem

The industry categorizes the API ecosystem into four distinct layers:

L0: CSP Domain - technical

This is the foundation: the 4G evolved packet core (EPC) and 5G SA network functions. This layer holds the raw data and capabilities. These technical resources get transformed into APIs that the CAMARA initiative has been working to standardize

L1: CSP Domain - exposure and monetization

This is also the CSP's proprietary domain. L1 abstracts the complexity of L0, exposing network capabilities as standardized CAMARA APIs and ensuring compliance with TM Forum Open APIs (such as TMF931) for simplified product ordering and lifecycle management. This layer encompasses the monetization stack:

● API exposure gateway: centralized access management and security.

● Billing, rating, and settlement: consumption tracking and commercial pricing across various models.

● Identity & consent management: ensuring compliance and privacy for end-users, a non-negotiable component for location and KYC APIs.

L2: Aggregator domain

L2 is the convergence point, enabling global scale. It is managed by aggregators like Aduna who handle the integration and federation of APIs from multiple CSPs. This multi-CSP aggregation creates a global unified service exposure, giving developers a single, consistent entry point to access network capabilities across different operators. This layer includes traffic management to route requests to the appropriate network..

L3: Enterprise domain

This layer, consisting of Channel Partners or Onward Providers, is important for achieving wide scale market penetration. This is where organizations like hyperscalers, CPaaS providers, independent software vendors, and system integrators live. By aggregating, simplifying, and often combining the core network APIs from the CSPs, these L3 partners create value-added products and services. Their key role is exposing these enhanced APIs to their established developer communities, extending reach and fostering adoption and innovation well beyond the CSP's direct ecosystem.

The customer

The APIs are then consumed by various application service providers, ranging from financial institutions and e-commerce platforms to connected vehicle manufacturers and drone operators, to build services that leverage the network’s unique features, such as quality on demand or device location.

The blueprint for API ecosystem success

Just exposing a few APIs won't cut it anymore. The victors in this rapidly evolving digital economy will be the ones who genuinely adopt the "internet mindset": focusing on speed, agility, and constant iteration.

Here's the five-point framework for thriving in the Network API ecosystem:

1. Embrace diverse channels and aggregation

The days of siloed, direct-only API sales are over. Success demands embracing multiple channels (direct developer portals, wholesale partners, and hyperscalers) while leveraging standards like CAMARA to ensure interoperability and federation. Aggregation, as seen in the L2 model, removes complexity for developers, providing a “one-stop shop” for purchasing APIs from multiple CSPs.

2. Deliver a world-class developer experience

Developers are the CSPs' new customers. They demand instant access, APIs that are easy to use, clear documentation, and powerful self-service tools. CSPs must invest in a platform that offers:

● Intuitive portals: a fast, self-serve environment for onboarding and API testing.

● Intelligent support: tools, perhaps powered by AI assistants, and performance monitoring that don't just report errors, but proactively flag anomalies in usage and performance.

● Pre-built content tools (CMS): these speed up the launch of new APIs dramatically, cutting out the typical lag time and heavy web development effort.

3. Implement agile monetization strategies

An effective API monetization engine needs to support a rich, flexible variety of pricing models to attract and retain different customer segments:

● Pay-per-use: charge per API call, which is perfect for encouraging initial exploration and adoption.

● Subscription/tiered: offers committed usage and creates a predictable revenue stream.

● API parameter based: pricing adjusts based on the specific type or value of the data requested through the API.

● Dynamic pricing: rates fluctuate automatically, adjusting based on real-time demand or even the time of day.

4. Mandate open standards and architecture

Adopting the architectural principles from the TM Forum's Open Digital Architecture (ODA) and their Open APIs, alongside the specifics laid out by CAMARA/Open Gateway, isn't optional, it's foundational. This compliance simplifies the process of publishing and consuming APIs across different operator networks, lowering the barriers for partners and accelerating the time it takes to get products to market.

5. Use a living, partnered platform

Trying to build a complete API monetization and exposure solution from the ground up is both time consuming, risky, and expensive. Instead, CSPs should consider engaging with partners who offer cloud native, modular platforms. These solutions are specifically engineered to handle complex requirements right out of the box and can scale effortlessly. This strategy allows CSPs to direct their resources toward creating high-value-add services, rather than babysitting core infrastructure.