From Infrastructure To Innovation: The Network API Opportunity

The journey toward full-scale monetization of network APIs remains long and complex for telecom operators. Why? Because the challenge lies less in defining technical features or identifying short-term revenue streams and more in undertaking a fundamental telco mindset transformation. Just about a year after its formation, Ericsson recently completed its transaction to acquire an additional stake in Aduna, the global aggregator and distributor of network APIs.

This deal is significant: Aduna represents a strategic step forward in promoting cross-telco industry collaboration. This should also help to make mobile network operators more attractive to developers (figure). As an API aggregator, Aduna acts as a critical bridge connecting enterprise customers with a diverse ecosystem of operators and, ultimately, consumers. Now structured as a 50:50 joint venture between Ericsson and a consortium of 12 telecom operators, Aduna reflects the growing recognition that collaborative platforms are essential to unlock API-driven innovation at scale.

Source: GSMA developer survey (August 2024)

Removing The Roadblocks: Enabling Network API Success

Telcos face several entrenched obstacles that limit their ability to fully realize the value of network APIs:

• The wrong operational model. Many telecom operators continue to manage network API initiatives within their wholesale business units. This is a missed opportunity. Network APIs have clear potential to enrich user experiences, streamline customer onboarding, reinforce cybersecurity, and improve identity protection across a range of digital services. Treating them as wholesale artifacts limits their strategic value.
• Cultural silos and a lack of developer alignment. The disconnect between telcos and the developer ecosystem remains significant. With vastly different cultures and priorities, bridging this gap will require a mind shift, sustained communication, and mutual understanding. Telcos must view this integration process as part of a broader organizational transformation, not just a technical adjustment.
• Outdated perceptions of competition. Many telcos still regard one another primarily as rivals rather than potential collaborators. Adopting a more cooperative mindset—akin to airline code-sharing alliances—can unlock shared value and scale. Aduna is well-positioned to catalyze this shift, bringing together telcos, developer platforms, system integrators, CPaaS providers, and ISVs in one evolving ecosystem.

Rethinking The Telco Mindset: A Prerequisite For Network API Monetization

As Viktorija Radman, Telecom Business Director at Infobip, notes:

“For network APIs to unfold their full potential, telcos need to treat them as much more than a niche wholesale opportunity. Instead, telcos should treat network APIs as a B2B service opportunity.”

Realizing the full potential of network APIs demands a fundamental change in how telcos perceive and position them. Rather than focusing solely on technical exposure and monetization mechanics, telcos must frame APIs as enablers of seamless, secure, end-to-end service delivery. This shift requires:

• Designing around customer workflows and processes, not just exposing API features;
• Adopting a new go-to-market approach tailored to digital buyers and developers;
• Aligning data strategies with API offerings to maximize business value;
• Building strategic partnerships with ecosystem players to accelerate reach, co-innovate use cases, and tap into established developer communities;
• Fostering cross-functional collaboration of the whole ecosystem to deliver integrated, market-ready solutions.

Participate In PAC’s Network API Research

As part of the SITSI research program, I am developing a series of reports that explore the technical, operational, and cultural shifts telcos must make to close the valuation gap with digital-native providers. These reports will cover agile operating models, organizational redesign, customer journey transformation, and service simplification. The objective is to help telcos not just survive but thrive in a future where connectivity serves as a foundational platform for growth.

• The Future Of Telecoms 2030
• Choose The Right Telco Business Model
• Growth Opportunities In The Telco Sector
• Network Infrastructure Evolution Opens New Value Propositions
• Embrace The Opportunities Of Network API Monetization
• Embrace AI In The Telco Context

Please contact me (d.bieler@pacanalyst.com) if you want to discuss any of these themes or contribute to the research.