The introduction of 5G technology has transformed interpersonal and enterprise communications. It has presented opportunities and ideas that have improved the way stakeholders live and interact with one another.
This next-generation connectivity has brought about better internet speeds and a wide variety of new opportunities for businesses expansion.
The availability of 5G networks has brought about transformative change, enabling developers to design applications that are more intelligent, reliable, and secure. This transformation promises a future in which digital experiences will be redefined by better communication capabilities and seamless integration, which will consequently drive extraordinary improvements in technology.
In a digitally-advancing society, it is essential that various software applications work together seamlessly. Application programming interfaces (API) make it possible for software and applications to become interoperable.
Understanding APIs
Amazon Web Services (AWS) defines APIs as a system that enables two software components to communicate with each other through the use of preprogrammed rules and protocols. An example would be the software system that the weather bureau uses to store the enormous amount of daily weather data. Whenever users check the weather on their smartphone, the weather app seemingly communicates with the bureau's system using an API, which then retrieves the required information and displays it on their screen. The fact that APIs can facilitate such a seamless interface is what makes them vital in the building of modern applications.
Both the client and the server are essential components of API architecture. The client, often an application requesting information, sends a request to the server. The server then provides the necessary data or functionality in response to the client's request.
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Modern API Transformation
The International Data Corporation (IDC) has forecasted that revenues for telecom and network APIs will reach USD 6.7 billion by 2028, a significant increase from the USD 700 million that was recorded in 2023. This growth, set to increase at a compound annual growth rate (CAGR) of 57.1% during the 2023-2028 period, indicates a huge shift in the manner in which communication service providers (CSPs) will function and perform in the future.
Historically, CSPs have been exceptionally successful in providing mobile connectivity on a vast scale. The increasing demand for connectivity was the driving force behind this strategy, which resulted in a steady year-over-year revenue increase.
However, the environment began to change with the entry of third-party entities. These entities, including providers of Communication Platform as a Service (CPaaS), cloud services, and other digital platforms, successfully understood digital opportunities, establishing extensive developer ecosystems. This shift relegated many traditional telecom companies to the role of mere infrastructure providers. Consequently, service providers have struggled to monetize the growing number of devices utilizing their networks.
That being said, the introduction of 5G networks and the strategic exposure of APIs has presented an opportunity that has the potential to completely transform the industry. Telcos now hold the opportunity to establish themselves as significant players in the digital world by integrating 5G capabilities with APIs. This integration makes it possible to develop connectivity solutions that are programmable and adjustable, and which can be tailored to meet the ever-changing requirements of both consumers and enterprises.
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APIs in Action
The advent of 5G and APIs is generating significant revenue growth in Asia by enabling new business models and monetization strategies.
In India, the establishment of a robust API platform to support its 5G network has allowed companies such as Reliance Jio to create a various apps, ranging from those for gaming and entertainment to those for healthcare and education. One example is the development of a telemedicine application that leverages high-speed connectivity and APIs offered by 5G to facilitate remote consultations with medical professionals. This has proven to be beneficial to rural communities who have limited access to healthcare.
Meanwhile, AIS has improved its entertainment offerings in Thailand by utilizing 5G and APIs. An API-based streaming service that integrates with a variety of content sources was introduced by the company. The service provides streaming in high definition with minimum buffering, resulting in an experience that offers unmatched overall viewing quality. Through the use of APIs, AIS has also built interactive elements such as live polls and quizzes. Not only do these features keep viewers interested, but they also aid in monetization expansion.
In Singapore, Singtel's launch of SingVerify, an API-driven solution for on-demand and secure telco capabilities, highlights another revenue-generating opportunity. By enabling real-time digital identity authentication, Singtel not only enhances security but also opens up new monetization avenues. Chief Executive Officer, Ng Tian Chong, emphasized that SingVerify's deployment could mitigate fraud, safeguard customer data, and prevent financial losses, thereby increasing its value proposition to customers and driving revenue growth.
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In Japan, NTT DOCOMO, Miyashita Lab, and H2L have launched the world's first taste-sharing technology for the metaverse. By leveraging 5G and APIs, this innovative solution enables new types of digital experiences, attracting more users and developers to the platform, which in turn generates new revenue opportunities through subscriptions and service fees.
Nokia's platform provides operators like BT with tools such as Software Development Kits (SDKs) and open APIs, enabling them to monetize their 5G network assets. By providing these development tools, operators can attract a broader range of application developers who can create value-added services, thereby increasing the operators' revenue potential through their 5G networks.
Blue Planet’s new componentization strategy allows service providers using ONAP to integrate microservices-based components via standard APIs. This flexibility enables service providers to combine open-source and commercial solutions, accelerating their automation initiatives and reducing operational costs. The ability to offer enhanced services more efficiently helps these providers monetize their 5G investments more effectively.
Huawei Indonesia's partnership with Accenture, Cloudera, Anabatic, IDPRO, Infosys, and Telkomsigma to launch Huawei FusionSphere 6.0 demonstrates another pathway to revenue growth. FusionSphere 6.0, an enterprise-class cloud operating system, supports virtual servers, private clouds, public clouds, hybrid clouds, cloud desktops, and virtualized network infrastructure. By utilizing open-source software and supporting OpenStack APIs, Huawei offers customers more choices, attracting a wider user base and generating additional revenue through its versatile cloud solutions.
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Final Thoughts
Following the emergence of 5G and API’s, the future of telecommunications in Asia is expected to be more positive. The ongoing development of these technologies may also lead to the emergence of an even greater number of cutting-edge applications and services. The growing adoption of the technology by telecom operators and the establishment of a thriving ecosystem through collaborative efforts with developers, businesses, and government agencies will be essential to the technology's success.
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