Almost three quarters or 73% of communication service providers (CSPs) put network API exposure in their top 5 priority list, according to a recent research by Analysys Mason.
CSPs are increasingly turning to open APIs (application programming interface) and SDK (software development kits) to enable software developers to create programs that offer new 5G services to customers.
Furthermore, the research found that around 60% of software developers are keen to write software programs that enrich their applications for customers with new services, such as improved quality on demand.
The research, which was commissioned by Nokia, polled 44 CSPs and 67 software developer firms around the world and assessed their attitudes on various dimensions of the concept of network-platform-as-a-service (NPaaS), sometimes referred to as Network-as-Code, or programmable network.
The market for these services that are enabled by telecom APIs will grow from US$12 billion in 2022 to US$34 billion by 2026, according to Nokia estimates.
Monetising 5G
Enlisting software developers, at scale, is increasingly essential to the creation and delivery of 5G services.
“CSPs have the opportunity to generate incremental revenue through collaboration with developers and other CSPs to create a larger ecosystem,” said Caroline Chappell, partner at Analysys Mason.
“CSPs should strongly consider contributing their APIs to a third-party, network-platform-as-a-service (NPaaS), engaging with developers, and building an ecosystem that includes other CSPs in order to prevent fragmentation that could hinder the viability of this opportunity.”
Caroline Chappell, Analysys Mason
Telecom service APIs have a significant role to play in monetising 5G because they can expose the deep functionality and data within telecom networks; allowing developers to then develop new use cases for their customers, both enterprises and consumers.
Network issues
Still, according to the research, while CSPs and software developers are broadly aligned in their assessment of the most important network APIs, around half of developers cited network issues, like the need for more insight and control of how network quality affects the performance of their applications, as a major challenge when trying to use cloud and Software-as-a-Service (SaaS) services.
Further, some 76% of software developers said that network APIs must be easy to use and indicated that complexity and the lack of API documentation from CSPs currently deter them from using network APIs.
“This research underscores the appetite to drive this ecosystem forward, but also highlights the work to be done to facilitate a deeper understanding between CSPs and developers and the required work between them,” said Shkumbin Hamiti, head of network monetization platform, cloud and network services at Nokia.
“In the 5G world, a new digital ecosystem is emerging, with multiple service chains of hyperscalers, infrastructure, networks, and applications being created on a case-by-case basis to create end-user value.”
Shkumbin Hamiti, Nokia
