The business will use Ericsson’s Vonage platform as its portal and is branded as MagentaBusiness API
Deutsche Telekom (DT) is to charge developers and business customers for the use of APIs on its mobile network in Germany. The APIs will allow the third parties to build apps and services, using information and functions from the network. The API portal will run on the Vonage platform, owned by Ericsson
The intention is to allow developers and business customers to embed communication functions like video, voice, messaging and other capabilities into their products, applications and workflows. The platform should lower barriers to entry for network APIs, making the service available to small- and medium-sized enterprises (SMEs) as well as corporations.
MagentaBusiness API will be launched as a friendly adopter program. We have requested details from DT about how and how much third parties will be charged for use of the APIs and will add that information when we have it.
The first three
These three network APIs will be made available by the MagentaBusiness API Portal initially:
Quality-on-demand – supports customers’ requests for specific quality of service for a SIM card. Data can be transferred with stable latency or bandwidth, even under when there are high loads in the network. Tele-operated driving, for example, requires constant low latency for safety. This was showcased at the recent International Motor Show Germany with partners from automotive.
Device Status, Roaming – this roaming API will be implemented to determine whether or not a device is in international roaming mode, and where to help detect credit card fraud as a banking app can instantly check if a customer is likely to be making a payment abroad.
Device Location means the network can verify the location of a SIM card within the mobile network in Germany without relying on GPS. A successful trial with a major logistics company tracked delivery vehicles and routed them to the correct loading ramp of a freight plane, increasing efficiency.
We have asked DT for information about when more APIs will be made available and will update the story when we have that information.
New revenue streams
Claudia Nemat, Board Member for Technology and Innovation at DT, said, “Our network itself will enable new growth opportunities for businesses through APIs. We invite our customers to explore new use cases or optimize existing business processes by participating in our friendly adopter program
“With Vonage and Ericsson, we are the first to expose network APIs in a one-stop shop portal. APIs are a key strategic focus for Deutsche Telekom. This is underlined by our status as a founding member of the CAMARA alliance, which aims to make standardized APIs available internationally.”
The long game
More than 140 companies are working on the CAMARA open source project, which was announced at MWC in February and run by Telco Global API Alliance under the auspices of the Linux Foundation. DT is a ‘premier’ member of the Alliance, whose goal is to define, develop and test network APIs.
The APIs will have two main functions: to extract information from the network in a controlled (for example, governing access for specific purposes by verified parties and compliance with regulation) and secure fashion; and enable network configuration.
The ultimate goal is to transform operators’ networks into service enabling platforms, streamlining the integration of networks and applications, and particularly to exploit 5G Standalone’s attributes.
Paying its way?
Research firm STL Partners reckons revenues from mobile networks’ APIs will be more than $20 billion by 2028. Watch this video presentation by Yesmean Luk of STL Partners talking about network APIs and the revenue opportunity for operator at our Telecoms Europe LIVE event in summer.
Somewhat controversially, Ericsson paid $6.2 billion for Vonage in 2021. At the time, Ericsson’s CEO, Borje Ekholm, said, “Vonage gives us a platform to help our customers monetise the investments in the network, benefitting developers and businesses. Imagine putting the power and capabilities of 5G, the biggest global innovation platform, at the fingertips of developers.”
On the subject of the deal with DT, Ekholm was quoted by Reuters saying, “We view the API business as a standalone business in itself, so we need to make that profitable by itself and the way the revenue split works is attractive for us and will be attractive for Deutsche Telekom”.
Its progress will be closely scrutinised by an industry that has long talked about monetising APIs.