Open Gateway APIs: 6 reasons why Telcos cannot afford to delay Open Gateway
Open Gateways APIs.
Let’s be honest: if you’re still treating network APIs as a technical nice-to-have, you’re missing the point – and likely the revenue. Telcos have spent years talking about transformation, but the real pivot is already happening. It’s not about flashy proof-of-concepts or waiting on “what good looks like.” It’s about acting decisively before the window closes.
While forecasts paint a picture of massive revenue opportunities from network APIs by 2030 – with projections ranging from $34 billion according to STL Partners to over $100 billion by McKinsey – many mobile network operators (MNOs) remain hesitant to fully commit to API monetisation strategies[1][2]. This hesitation is not only misguided but potentially catastrophic for competitive positioning. The time for cautious observation has passed; the next six months represent a make-or-break window for telcos to establish themselves as leaders in the API economy rather than followers scrambling to catch up.
The Scale of Opportunity Demands Immediate Action
The numbers speak volumes about the transformative potential ahead. STL Partners forecasts the network API market will grow from $4 billion in 2023 to $34 billion by 2030, representing a compound annual growth rate of 34%[1]. McKinsey takes an even more bullish view, estimating the network API market could unlock $100 billion to $300 billion in connectivity and edge-computing-related revenue for operators, with an additional $10 billion to $30 billion from APIs themselves over the next five to seven years[2]. Arthur D. Little projects an aggressive 47% CAGR between 2023 and 2030, growing from approximately $1 billion to $13.5 billion[3].
These aren’t incremental revenue streams – they represent fundamental shifts in how telco value is created and captured. The question isn’t whether this transformation will occur, but which operators will lead it and which will be relegated to commodity pipe providers watching others monetise their infrastructure investments.
However, the real imperative lies not in the 2030 projections but in the immediate competitive dynamics unfolding right now. Early movers are already establishing market positions that will be difficult to challenge once ecosystem effects take hold.
Breaking Down MNO Reluctance: Understanding the Hesitation
Despite the compelling opportunity, operator reluctance persists across several dimensions. Understanding these concerns is crucial for building the case for immediate action.
Security and Risk Aversion
Many operators express legitimate concerns about expanding their attack surface through API exposure. As Jorrit Kronjee from KORE Wireless notes, opening APIs introduces enterprise-grade security challenges, including denial-of-service attacks, data leakage risks, and man-in-the-middle attacks that telcos haven’t traditionally faced[4]. This concern is amplified by the Fortinet analysis showing that API exposure creates new attack vectors that malicious actors can exploit[5].
Commercial Model Uncertainty
Operators struggle with pricing strategies and revenue-sharing models in complex aggregator chains. The ecosystem involves multiple layers – telcos selling to aggregators, who may sell to other aggregators, creating what David Rolfe calls “quite complicated” commercial relationships with unclear accountability chains[4]. This complexity makes it difficult to guarantee quality of service and creates friction in determining responsibility when systems fail.
Internal Organisational Resistance
Perhaps most critically, internal champions face significant challenges pitching API strategies to decision-makers who demand immediate, high returns. As noted in digital payments research, the requirement for rapid ROI makes the investment required for open APIs a “hard sell” due to unclear business cases and lack of dedicated leadership[6]. This organisational inertia represents a more significant barrier than technical challenges.
Revenue Cannibalisation Fears
Some providers worry that opening platforms could cannibalise existing products and future pipeline offerings. While understandable, this concern reflects short-term thinking that ignores the larger market expansion possibilities and the risks of inaction[6].
The Case for Immediate Action: Six Critical Reasons
1. The Standardisation Window Is Closing
The GSMA Open Gateway initiative represents the industry’s best attempt at creating universal, standardised network APIs. Launched with support from 21 major operators, including AT&T, Deutsche Telekom, Orange, Telefónica, and Vodafone, this framework addresses the historical challenge of API fragmentation that created high integration costs[7]. The initiative’s momentum is building rapidly, with demonstrations already showcasing capabilities from device location to quality-on-demand services.
Operators who join this standardisation effort early will help shape the standards that others must follow. Those who wait risk being forced to adopt frameworks designed without their input, potentially compromising their competitive positioning.
2. The Joint Venture Advantage Is Time-Limited
The recent formation of a joint venture by thirteen major telcos including Ericsson, América Móvil, AT&T, Bharti Airtel, Deutsche Telekom, Orange, Reliance Jio, Singtel, Telefónica, Telstra, T-Mobile, Verizon, and Vodafone – creates an unprecedented opportunity for API aggregation and monetisation. This collaborative approach aims to overcome integration challenges while maintaining individual operator revenue opportunities.
However, this opportunity has natural limits. As the venture gains momentum and establishes market presence, joining later will mean accepting terms and frameworks established by founding members rather than helping to create them.
3. Developer Ecosystem Readiness Has Reached Critical Mass
The developer community is finally ready to embrace telecom APIs at scale. Unlike previous attempts that failed due to complex integration requirements and limited developer tools, current initiatives benefit from cloud-native development practices and standardised API frameworks[9]. The CAMARA open-source project, backed by the Linux Foundation and GSMA, provides developer-friendly tools and software code that dramatically reduce integration barriers[7].
This readiness is time-sensitive. Developer attention and investment in telecom APIs represent a window of opportunity that won’t remain open indefinitely if the industry fails to deliver compelling, accessible solutions.
4. First-Mover Advantages in Identity APIs Are Available Now
STL Partners’ research indicates that identity-related APIS will drive early value, representing the “low-hanging fruit” of network API monetisation[1]. These APIs, including subscriber authentication and fraud prevention services, require less complex network orchestration while offering immediate value to enterprise customers.
Operators who establish strong positions in identity APIs now can build customer relationships and technical capabilities that position them advantageously for more complex network performance APIs that will drive longer-term growth.
5. 5G Infrastructure Investment Demands Immediate Returns
Telcos have invested nearly $1 trillion in network upgrades since 2018, yet continue struggling to monetise 5G capabilities[2]. This investment overhang creates urgent pressure to demonstrate returns, particularly as shareholders and boards question the value of continued infrastructure spending without corresponding revenue growth.
Network APIs represent the most promising path to monetising 5G’s unique capabilities: ultra-low latency, network slicing, edge computing – that remain largely untapped by current service models. Delaying API monetisation extends the period of poor 5G ROI and risks creating a narrative of failed investment.
6. Competitive Threats Are Materialising Rapidly
The telecommunications industry faces existential threats from hyperscalers and cloud providers who increasingly offer connectivity services. These companies bring API-first approaches and developer-friendly ecosystems that telcos struggle to match[10]. Amazon, Microsoft, and Google are all investing heavily in edge computing and network services that could disintermediate traditional operators.
The window for telcos to establish API leadership before these competitors fully enter telecommunications markets is rapidly closing. Operators who wait risk competing against companies with superior API capabilities and established developer relationships.
Tactical Implementation: The Next Six-Month Roadmap
Moving from strategy to execution requires immediate tactical steps that can be accomplished within six months while positioning for longer-term success.
Months 1-2: Foundation Building
Operators should begin with comprehensive API inventory and security assessment. This involves cataloguing existing APIs, identifying security gaps, and establishing baseline monitoring capabilities. Simultaneously, leadership alignment around API strategy and resource allocation must be secured to avoid the internal friction that has derailed previous initiatives.
Months 3-4: Partnership and Standards Engagement
Active participation in GSMA Open Gateway and choosing the right Channel Partner must be prioritised. Developer portal establishment and initial API documentation should begin during this phase. This stage is where telcos can gain a massive advantageby choosing a channel partner with experience of deploying Network APIs at scale with full compliance, such as Sekura.id.
Months 5-6: Market Entry and Testing
Limited market trials with select identity APIs should commence, focusing on fraud prevention and authentication services that offer immediate value with minimal complexity. Partner feedback loops and commercial model testing will provide crucial market intelligence for broader rollout strategies. Talking of which, choosing the right Channel Partner can help here by supplying the clients as well as the platform and all-round deployment know-how.
The Cost of Waiting: A Cautionary Analysis
History provides sobering examples of telco industry hesitation leading to missed opportunities. The sector’s slow response to over-the-top messaging services allowed WhatsApp, Telegram, and others to capture value that should have accrued to network operators. Similarly, a delayed embrace of cloud services enabled hyperscalers to establish dominant positions in enterprise connectivity.
The API opportunity presents similar dynamics but compressed timelines. Unlike previous technology shifts that evolved over decades, API standardisation and developer ecosystem formation are happening rapidly. Operators who miss this wave may be permanently relegated to infrastructure provision rather than service innovation.
The financial implications are stark. An operator capturing even 1% of the projected $34 billion API market would generate $340 million in additional revenue by 2030[1]. For large operators, capturing 3-5% market share could represent billions in new revenue streams. Conversely, operators who fail to participate risk seeing their infrastructure monetised by competitors and aggregators while receiving only commodity access fees.
The Time for Action Is Now
The Open Gateway network API opportunity represents more than incremental revenue enhancement – it’s a fundamental reimagining of telecommunications value creation. While 2030 projections capture headlines, the real battle will be won or lost in the next six months as standards solidify, partnerships form, and developer ecosystems choose their preferred platforms.
MNO reluctance, while understandable given legitimate security, commercial, and organisational concerns, represents a dangerous form of analysis paralysis. The costs of imperfect early action pale compared to the consequences of delayed market entry in a rapidly consolidating ecosystem.
The telecommunications industry stands at a crossroads remarkably similar to the early days of mobile data services. Operators who moved aggressively to build data capabilities and partnerships captured outsized returns, while those who waited found themselves competing on price in commoditised markets. Today’s API decision will similarly determine which operators thrive in the next decade and which merely survive as infrastructure utilities.
The choice is clear: lead the API transformation now or spend the next decade recovering from the decision to wait.
Sekura.id’s Uniti platform is purpose-built to help telcos monetise Open Gateway APIs at speed, with zero complexity. Unlike others who stop at infrastructure, Sekura.id delivers full go-to-market execution from packaging and pricing to real enterprise demand and proven sales. With deep roots in mobile identity, global reach across 20+ operator groups, and a ready-made suite of revenue-generating APIs like SIM Swap, KYC Match, and Auth, Sekura.id ensures operators don’t just deploy APIs – they profit from them. Uniti isn’t just a platform, it’s telcos’ partner in turning network signals into scalable, recurring revenue.
- https://stlpartners.com/research/network-api-monetisation-forecast-2023-2030-growth-beyond-anti-fraud/
- https://www.mckinsey.com/industries/technology-media-and-telecommunications/our-insights/what-it-will-take-for-telcos-to-unlock-value-from-network-apis
- https://www.adlittle.com/en/insights/viewpoints/network-apis-unlocking-potential-advanced-connectivity
- https://www.rcrwireless.com/20240403/featured/three-open-api-challenges-in-telecom-networks
- https://www.fortinet.com/content/dam/fortinet/assets/white-papers/wp-gsma-open-gateway.pdf
- https://www.cgap.org/sites/default/files/publications/slidedeck/openapisindigitalpayments-161207192942.pdf
- https://www.gsma.com/newsroom/press-release/gsma-open-gateway/
- https://www.cerillion.com/blog/the-silent-disruptor-how-network-apis-are-quietly-reshaping-telecoms/
- https://www.ericsson.com/en/enterprise/network-apis
- https://hsenidmobile.com/from-pipes-to-platforms-the-telco-shift-to-api-first-architecture/
