Mobile network APIs: Developers highlight priorities

The GSMA Open Gateway for mobile network APIs has made remarkable strides on the supply side, with operators responsible for 75% of the global mobile market share joining the initiative. Since June 2024, over 15 new operators have come on board.

This adoption contrasts sharply with efforts from a decade ago, such as the One API project, which faltered due to fragmentation and varying standards across different countries. The current initiative addresses these issues with common standards and integration with Linux/Camara, offering a unified approach.

Adoption disparities of mobile network APIs

According to a GSMA Intelligence survey, developer awareness and usage of mobile network APIs is relatively high in regions where 5G deployments are prevalent, such as the US, Europe, and the Middle East, reaching 70–80% among developers. Surprisingly, awareness in Asia – particularly in China – lags behind at just 20–30%, despite the region’s advanced 5G development.

In terms of usage, only around 30% of developers in the US and Europe actively use network APIs, equating to about half of the awareness levels in these regions. In contrast, usage rates are notably higher in India and Latin America, possibly due to the popularity of sector-specific use cases in these areas.

Developers recognise the potential for monetisation through mobile network APIs, particularly within the software-as-a-service domain. The rationale is straightforward; for instance, APIs can aid in fraud mitigation for e-commerce transactions and curb counterfeit device ownership.

Industry-specific use cases for mobile network APIs are also compelling, with distinct interests noticed across geographies: retail and e-commerce in India, gaming in Latin America, manufacturing in Europe, and consumer electronics in China.

Despite the technological advances, developers prioritise getting the basics right when choosing partners. Quality of service (32%), security and compliance (31%), and ease of API use (25%) top their list of desired partner attributes. While features like API testing and sandboxes (16%), a wide range of APIs (18%), and contracting templates (13%) are important, they rank lower in priority.

Examining revenue models

Revenue models are crucial for enticing and retaining developer support, reflecting the transactional nature of the industry.

GSMA’s survey reveals a strong preference for the subscription model, with around 40% of developers opting for it to secure a recurring income stream. Although this model offers financial certainty, it might not always be feasible, especially when dealing with new product sales and iteration cycles.

Consequently, other payment structures, such as revenue share (26%), usage-based pricing (35%), one-time purchase models (37%), and pay-per-feature (38%), are expected to play key roles in the industry.

Developers as key channel partners

Developers are pivotal for mobile operators aiming to monetise network APIs with enterprise clients. Their expertise and existing relationships within enterprises make them essential partners in breaking down awareness barriers.

GSMA Intelligence engaged 1,000 developers worldwide in mid-2024 to unravel their perspectives on network APIs, business priorities, target sectors, and preferred revenue models. The insights from this survey will contribute to the upcoming GSMA Open Gateway State of the Market report for H2 2024.

The ascent of hyperscale cloud providers like AWS, Microsoft, and Google has added a layer of complexity. These entities boast a vast array of developers within their ecosystems, as evidenced by 46% of developers already collaborating with hyperscalers.

Despite the initial fanfare of announcements at MWC 2024, the deployment of API support by hyperscalers in H2 has been subdued due to competing technological priorities.

For mobile operators and hyperscalers alike, a first-mover advantage exists for those who can connect developers with enterprise verticals. As the industry heads into 2025, dubbed a proof-point year for hyperscalers, there is an opportunity for companies to showcase how their API stories can align with enterprise needs.

The road ahead for mobile network APIs

Mobile operators are encouraged to heed developers’ pressing requirements by providing clear API descriptions, technical support for network integration, and business development assistance.

While subscription models may not initially dominate pricing strategies, particularly outside security features, flexibility is crucial. Pay-per-feature models offer alternatives, especially for location-based services and edge compute applications.

Aligning with enterprise customers’ expectations is also vital. While consensus exists on the utility of network APIs in sectors like transport, healthcare, energy, retail, and media, discrepancies emerge with banking & financial services and manufacturing. Interestingly, developers perceive more opportunities in manufacturing, given the established 5G presence in factories.

As GSMA Intelligence continues to explore the landscape of network APIs, the focus remains on understanding both developer and enterprise needs to bridge the gaps and drive innovation.

(Photo by Hemang Patel)

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Tags: api, coding, development, gsma, mobile, networks, open gateway, programming