The landscape of mobile network APIs is undergoing significant transformation, as evidenced by the GSMA Open Gateway initiative that has gained traction among operators of considerable market share. Since June 2024, more than 15 new mobile operators have joined the initiative, which now boasts participation from those controlling approximately 75% of the global mobile market. This noteworthy trend marks a departure from previous efforts like the One API project, which struggled with fragmentation and diverse standards across nations.
The GSMA Open Gateway initiative aims to facilitate better integration and standardisation within the industry, focusing on compatibility with technologies such as Linux/Camara. This approach addresses the challenges presented by varied regulations and practices, offering a more unified strategy for mobile network APIs.
Recent findings from GSMA Intelligence reveal that developer awareness and utilisation of mobile network APIs are significantly higher in regions with advanced 5G deployments, including the United States, Europe, and the Middle East, where awareness levels reach 70-80%. In stark contrast, awareness in Asia, particularly in China, is considerably lower at only 20-30%, despite robust advancements in 5G technology in the region. Although awareness is substantial, actual usage presents a different picture—with only around 30% of developers in the US and Europe actively utilising network APIs, compared to more robust adoption in India and Latin America attributed to the prevalence of industry-specific applications.
Developers are increasingly recognising the potential for monetisation through mobile network APIs, particularly within the software-as-a-service framework. APIs are viewed as essential tools for enhancing security measures in e-commerce and mitigating issues such as counterfeit device ownership. The industry exhibits diverse interests in mobile network APIs across geographies, with usage patterns reflecting local business needs—retail and e-commerce are prominent in India, gaming takes precedence in Latin America, manufacturing is dominant in Europe, and consumer electronics are a focus in China.
When assessing partners, developers have clear priorities. According to the GSMA survey, the quality of service (32%), security and compliance (31%), and ease of API usage (25%) top the list of attributes that developers value. While features like API testing and access to a broad array of APIs hold significance, they rank lower on their list of criteria.
The financial aspect of mobile network APIs is also critical. Developers displayed a notable preference for subscription models, with approximately 40% favouring this approach to establish a stable income source. Despite its advantages, this model may not always be practical, particularly for new product sales and iterations. In addition, preferences for flexible payment structures include revenue sharing (26%), usage-based pricing (35%), one-time purchase models (37%), and pay-per-feature pricing (38%).
In a broader context, developers play a crucial role for mobile operators seeking to leverage network APIs with enterprise clients. Their established connections within enterprise environments position them as key partners for overcoming barriers to awareness and usage.
GSMA Intelligence conducted a survey engaging 1,000 developers globally in mid-2024, examining their insights on network APIs, business priorities, target sectors, and preferred revenue structures. These findings will inform the forthcoming GSMA Open Gateway State of the Market report for the second half of 2024.
The emergence of hyperscale cloud providers, such as Amazon Web Services (AWS), Microsoft, and Google, has added layers of complexity to this ecosystem. Currently, 46% of developers are collaborating with these hyperscalers, though their deployment of API support has been observed to be subdued in the latter half of the year due to competing technological priorities.
As the industry approaches 2025—predicted to be a pivotal year for hyperscalers—the potential for companies to showcase how their API capabilities align with enterprise requirements is substantial. Further, it is essential for mobile operators to focus on developers’ needs by ensuring comprehensive API documentation, technical integration support, and business development assistance.
While subscription models may not dominate the pricing strategies initially, especially outside vital security features, flexibility will be key. Alternative models, such as pay-per-feature, are expected to find relevance, particularly for location-based services and edge computing applications.
GSMA Intelligence is set to continue its exploration of network APIs, aiming to align developer and enterprise needs and drive innovation within the industry. As technology evolves, understanding these dynamics will be critical for all stakeholders involved.
Source: Noah Wire Services