Will APIs Boost Mobile Operator Revenue?

Mobile operators always are on the lookout for new revenue sources, and many now hope application programming interfaces can boost revenue. 

GSMA Open Gateway is a new framework of universal network application programming interfaces (APIs) designed to provide developers with access to operator network features, starting with eight features:

• SIM Swap, 

• QoD

• Device Status (Connected or Roaming Status)

• Number Verify

• Edge Site Selection and Routing

• Number Verification (SMS 2FA)

• Carrier Billing – Check Out

• Device Location (Verify Location). 

Additional APIs are expected, and GSMA touts the move as similar in potential impact to voice roaming, in terms of enabling global access in a consistent manner. 

Edge Site Selection and Routing supports autonomous vehicles. Verify Location is expected to support  fleet management and incident reporting.

SIM Swap is intended to deter financial crime. “Quality on demand” (QoD) is expected to support low-latency applications such as drone control, robotics, extended reality and immersive online gaming, GSMA says. 

Designed to expose mobile operators’ network capabilities, the effort initially is supported by 21 mobile network operators, 

GSMA itself says the move “represents a paradigm shift.” 

Participants include America Movil, AT&T, Axiata, Bharti Airtel, China Mobile, Deutsche Telekom, e& Group, KDDI, KT, Liberty Global, MTN, Orange, Singtel, Swisscom, STC, Telefónica, Telenor, Telstra, TIM, Verizon and Vodafone.

The level of success might ultimately be determined by developer interest in using those network features and whether and how much mobile operators can create revenue models around the APIs. 

source: Yalantis 

The GSMA Open Gateway has mobile operators in the role of API Provider, while developers are API Consumers. 

source: Yalantis 

The unstated assumption is that developers will find the APIs so compelling they will pay to use them, rather than attempting to create access to those features themselves. The extent of value also hinges on whether a desired value can be sourced in some other way, or does not add enough value to warrant payment of fees.