Cellular network APIs: The gateway to unlock new revenue streams for CSPs

Mobile operators have invested heavily in their telecom infrastructure, including deploying advanced antennas and radio units that improve coverage and signal quality, rolling out 5G SA and NSA networks, and acquiring spectrum.

Cellular networks APIs (application programming interfaces) could help them in unlocking additional revenue from these advanced network technologies. The motivation from the telecom industry is to innovate, develop and offer advanced and improved services to help prevent identity fraud, deliver enriched user experiences, and equally important if not more, to create new revenue opportunities to recover investments in the deployment of 5G networks.

This blog explores what cellular network APIs are, key drivers of adoption, how 5G makes it easier to expose network APIs and the network API ecosystem. For more information on this topic, please read Transforma Insights’ recently published report: ‘Cellular network APIs: incorporating network data into IoT applications’.

A brief overview on cellular network APIs

Cellular network APIs are interfaces that enable cellular connected applications to access a cellular operator’s core network capabilities. A range of organisations, are seeking to establish standardised cellular network APIs to support flexible interfaces to multiple cellular networks using the same set of APIs. The availability of standardised network APIs enables application developers to leverage network data and capabilities that would otherwise only be available through proprietary operator integrations. Moreover, with the growing IoT ecosystem and the emergence of advanced applications that require ultra-low latency, high bandwidth, and reliable networks, businesses increasingly require assured connectivity. The availability of standardised network APIs enables operators to expose network capabilities as programmable services, allowing businesses to request and consume specific capabilities, such as guaranteed latency, dedicated network slices, or on-demand device location while paying according to the operator's pricing model.

Key drivers of network API adoption

The telecommunications industry has various reasons to adopt and leverage cellular network APIs. Here we have highlighted some of the key considerations that have motivated industry stakeholders to develop standardised network APIs.

• Monetising 5G networks. Leveraging 5G network capabilities, such as network slicing, ultra-low latency, and enhanced reliability, can enable end-user businesses to develop and offer differentiated services tailored to specific application requirements. Through network APIs, network capabilities can be exposed as programmable services, allowing businesses to request and consume specific capabilities.
• New revenue streams. Mobile operators can monetise their advanced network capabilities by introducing new business models that generate revenue beyond traditional connectivity services.
• Curbing authentication frauds. Organisations are under increasing pressure to curb cybercrimes related to identity and authentication fraud, which can result in financial losses. For instance, in the UK, the number of reported SIM swap fraud cases increased by 1,055% in 2024 compared to the previous year. Moreover, increasing government and regulatory scrutiny is compelling mobile operators to strengthen their identity verification processes.
• Delivering enhanced user experiences. Businesses and application developers are leveraging network APIs to create applications and services that not only improve the service quality but also offer more seamless and personalised user experience.

Network API ecosystem

The adoption of network APIs requires an industry-wide collaboration between stakeholders to deliver valuable benefits across the ecosystem. The various stakeholders involved in the API ecosystem are illustrated below.

• Communications Service Providers. Act as the critical player in the ecosystem by exposing network capabilities through standardised APIs.
• Technology providers & enablers. Offer various tools and services, such as network exposure platforms, API gateways, developer portals, and SDKs.
• Aggregators. Act as a bridge between mobile operators and enterprises and developers. Aggregators often have large enterprise and developer ecosystems that already offer APIs, enabling developers to integrate communication-related services into their applications relatively seamlessly.
• Developers & Enterprises. These are consumers of network APIs, who use them to develop applications and services that cater to specific user requirements.
• Industry bodies. Industry bodies can be considered both as sponsors, to ensure that standardised APIs are developed and delivered maintaining interoperability between networks and regions, and also as catalysts for the adoption of APIs.

Concluding remarks

To date, enterprises have focused on leveraging network APIs that help curb SIM-related fraud, such as SIM swap or device change, to prevent unauthorised access to personal information that can lead to financial losses. Going forward, the motivation from the telecom industry will be to innovate, develop and offer advanced and improved services to help prevent identity fraud, deliver enriched user experiences, and equally important if not more so, to create new revenue opportunities to recover investments in the deployment of 5G networks.