Progress and challenges in telecoms APIs

The GSMA has provided an update on its Open Gateway telecoms API initiative, highlighting strides in collaboration, developer engagement, and uptake. Yet, amid numerous triumphs, the report underlines persisting challenges that demand attention.

Launched in early 2023, the Open Gateway initiative was born from a simple yet ambitious idea: to harness mobile networks globally by exposing their capabilities via a common set of APIs.

The initiative holds the promise of unlocking innovation and revenue opportunities for mobile operators and their partners. It has since garnered participation from mobile operators representing 75% of the global market by mobile connections, with 14 operators joining in the latter half of 2024 alone.

Growth areas for Open Gateway

As of December 2024, 67 operators have signed on to the Open Gateway, expanding its representation across key global markets.

The geographic distribution remains somewhat uneven, with the lion’s share of growth concentrated in China and South and Southeast Asia. Operators such as Smart, Globe Telecom, and Cellcard from Southeast Asia have spearheaded this push, sparking a “domino effect” across the region.

Meanwhile, Africa’s participation lags, with only 5% of Sub-Saharan operators signed up despite their significant subscriber base, emphasising the need for greater outreach.

Security has proven to be the “bedrock” driver for Open Gateway API adoption so far, reflecting elevated global concerns around fraud. Operators have predominantly focused on deploying APIs that tackle fraud prevention and identity verification, including tools like SIM Swap, One-Time Password, and KYC Match. A recent landmark addition is “Scam Signal” in the UK—a collaboration between banks, including NatWest, and operators to combat authorised push payment fraud.

However, the appeal of APIs extends beyond security. Opportunities are also being exploited in edge computing, payment systems, and location-based services, which hold particular importance in high-growth industries like manufacturing and energy.

The numbers in context

The API ecosystem surrounding Open Gateway now includes 23 distinct APIs covering a range of use cases.

Operators are encouraged to prioritise rapid rollout and monetisation to prove the commercial value of the initiative. Yet, there’s growing recognition that achieving scale is contingent on deeper engagement with developers, enterprises, and third-party aggregators.

According to the report, while technical enablers to drive the initiative are “in place,” 2025 will be critical in addressing demand-side challenges. This includes securing buy-in from hyperscalers, such as Google Cloud and AWS, whose involvement has remained “subdued” after early fanfare.

Enterprise demand: A double-edged sword

Network APIs are positioned as instrumental tools for operators to capitalise on a booming market for enterprise digital transformation, which is forecast to double to nearly $1 trillion by 2030.

Security, IoT, and cloud/data centre services are identified as the primary areas of opportunity. Yet, despite the pledges, enterprises have been slow to integrate APIs into high-visibility projects. 

In manufacturing, for instance – a sector representing $60 billion in addressable operator revenue – API adoption remains relatively low. The report highlights a disconnect between developers and enterprise buyers on the practical opportunities APIs can unlock in sectors such as manufacturing and financial services.

Overall, the GSMA emphasises the need to tailor solutions to industry-specific needs and better communicate APIs’ value in enabling more scalable and secure solutions.

Developer sentiment

Supporting developers remains central to achieving scale. As the GSMA’s mid-2024 survey shows, it is vital to cater to developer needs and expectations to stimulate a healthy developer ecosystem.

Conducted across 1,000 developers globally, the survey covered both 5G-enabled and non-5G-enabled scenarios. Encouragingly, knowledge of network APIs is relatively strong among developers, with 68% reporting a “clear understanding.” However, significant regional disparities exist, with only around a third of Chinese developers familiar with APIs, despite the country’s leadership in 5G rollouts.

Usage rates among developers vary widely, with India and South America leading the pack at approximately 60–70%, compared to just 30% in the US and Europe. This divergence may partly reflect differences in the dominant industries across regions. Retail and e-commerce applications shine in India, while gaming is a strong domain in Latin America, contrasting with manufacturing use cases in Europe.

Developers value simplicity, flexibility, and clarity in API pricing models. The most favoured model is subscription-based, though many also welcome alternatives such as pay-per-feature or revenue-sharing arrangements—especially in the early stages of API adoption for niche applications.

Above all, developers prioritise quality of service, security, and ease of use. “Getting the basics right” emerges as a recurring theme, crucial for adoption.

Case studies and increasing Open Gateway adoption

The GSMA report highlights several successful use cases in collaboration with leading operators and technology partners:  

• Nokia and Elisa’s collaboration with Elmo Cars:  

In Finland, Nokia and Elisa joined forces for a proof of concept with remote-driving pioneer Elmo Cars. Using the Quality on Demand API, dynamic network adjustments were made to support remote driving through crowded areas, even under network congestion. The project provided real-time video upgrades, improved situational awareness, and showcased the ease of deploying standardised APIs across markets.

• Orange and Laude’s public safety case study:  

Orange collaborated with Laude, an IT consulting firm, to develop ViRe (Violence Restriction), an application for law enforcement that tracks domestic violence-related restraining orders. Using real-time geofencing and device location APIs, alerts are generated when aggressors breach designated zones. This builds on Orange’s use of the CAMARA API framework for innovative and practical solutions with cross-market applications.

• Telkomsel’s digital economy push:

In Indonesia, Telkomsel developed “Telco Verify,” an API-driven solution to combat fraud in the digital banking space. Against a backdrop of rising cyberattacks, the tool enhances authentication processes with two-factor authentication and number-based verification, playing a crucial role in safeguarding Indonesia’s burgeoning digital payments economy.

These case studies underscore the breadth of Open Gateway’s potential applications, but they also highlight areas for heightened focus.

While anti-fraud tools continue to deliver early wins, a broader mix of APIs is slowly being deployed—particularly in edge computing and location tracking. Nonetheless, questions around scalability and proof of revenue remain top priorities. 

The GSMA anticipates that its Fusion initiative, an “Advanced Market Commitment” scheme referenced at Deutsche Telekom’s Digital X event, will address lingering demand-side challenges by working with global enterprises to generate pre-commitments to Open Gateway APIs.

Partnerships are also spotlighted as key to scale. Notable collaborations include Ericsson’s API venture with global telcos, and Singtel’s integration with the Bridge Alliance API Exchange.

As the GSMA shifts focus from building technical capabilities to driving measurable business outcomes, 2025 will be a pivotal year. “The main indicator of success will be the extent to which APIs drive incremental revenues,” the report concludes.

Reaching this goal will depend on increased developer adoption, realising use cases across industries, and securing greater traction with hyperscalers.

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Tags: 5G, api, connectivity, developers, gsma, mobile, Networks, open gateway, telecoms