Telcos and the API Economy: The Mindshift We Need to Stay Relevant

In my previous post, I shared how Telcos can transform themselves from connectivity providers to ecosystem builders by embracing Network APIs. The responses and comments sparked incredible discussions—thank you to everyone who engaged. Now, let’s talk about what’s next and how we truly make this shift happen.

The reality is stark: developers and enterprises aren’t sitting around, waiting for a Network API to solve their problems. If we, as a Telco ecosystem, don’t adapt and innovate, others will continue to find alternatives. Take Waymo as a case in point: instead of waiting for Telco solutions, they leveraged GPS and LIDAR technology to make driverless cars a reality. If we don’t start thinking differently, we risk being bypassed, again and again.

The Required Mindshift: From "Offering APIs" to "Building an Ecosystem"

If Telcos want to succeed in the API economy, they must shift their approach from merely providing APIs to co-creating solutions and ecosystems. Here’s what that looks like:

1. Solve Real Problems, Not Just Showcase Technology

Enterprises and developers aren’t interested in APIs for the sake of APIs—they’re interested in solving business-critical challenges. Telcos need to adopt a problem-first mindset, embedding themselves into enterprise ecosystems to deeply understand their pain points.

For example, instead of marketing APIs like Device Status or SIM Swap as standalone tools, we should highlight how they prevent fraud in real-time, enable seamless driver onboarding for ride-sharing companies, or enhance user authentication in the financial sector. The focus needs to shift from "what we have" to "how we can help."

2. Engage Early, Especially with Emerging Brands

As Robert Lalla highlighted in his comment, early-stage brands are more flexible and willing to experiment. Telcos must build relationships with these innovators before they scale—helping them design network-first experiences from the ground up. By embedding ourselves early, we create loyalty and demonstrate our value as indispensable partners in their growth journey.

This means allocating more resources to strategic business development with Series A/B startups while ensuring a scalable path for them as they grow.

3. Create “Wow” Moments

Every interaction with enterprises should leave them amazed at the possibilities of what Telcos can deliver. Imagine pitching to a ride-sharing company and demonstrating how our APIs can authenticate drivers instantly in high-risk areas. Or showing a stadium operator how edge computing can enable immersive fan experiences in real-time during the Superbowl.

Telcos need to move from being perceived as commodity providers to trusted innovation partners who deliver unforgettable, network-powered solutions.

4. Build Strategic Alliances and Partnerships

No single Telco can win the API economy alone—it requires collaboration across the ecosystem. This includes forming strategic alliances with:

• Developers: Creating developer-friendly platforms, robust documentation, and sandbox environments that encourage experimentation.
• Enterprises: Partnering with vertical leaders (e.g., financial services, healthcare, ride-sharing) to co-create tailored solutions.
• Global Systems Integrators (SIs): Working closely with SIs to scale solutions globally, leveraging their enterprise reach and expertise.
• Cloud Providers: Integrating with hyperscalers like AWS, Azure, and Google Cloud to create seamless hybrid solutions that blend network APIs with cloud-native services.

The key here is to enable a thriving ecosystem where all participants—Telcos, enterprises, developers, and partners—see value and generate revenue.

5. Rethink Monetization Models

Traditional pricing models won’t cut it in the API economy. Telcos need to explore new commercial models like pay-per-use, outcome-based pricing, and revenue sharing, ensuring that developers and enterprises feel incentivized to adopt and scale these APIs.

For example, offering freemium tiers or bundling APIs into vertical-specific solutions can make adoption easier for enterprises, while creating long-term monetization opportunities.

Strategic Partnerships: The Key to Building the Ecosystem

Strategic partnerships aren’t just important—they’re essential. Telcos need to go beyond offering APIs to actively collaborating with enterprises and developers to co-create solutions that unlock value.

Let’s take an example from the ride-sharing sector:

• Problem: A company faces high instances of fraud during driver onboarding and rides.
• Solution: By collaborating with the ride-sharing platform, Telcos can integrate APIs like Device Status, SIM Swap, and Number Verification into their onboarding and verification workflows.

But this doesn’t stop at the API level—Telcos can partner with cloud providers and SIs to scale the solution globally, ensuring seamless implementation across multiple markets.

These partnerships must be mutually beneficial:

• For developers, we provide tools, resources, and a clear monetization path.
• For enterprises, we offer co-created solutions that address their challenges.
• For Telcos, we create a sustainable ecosystem that drives adoption, revenue, and innovation.

Telcos Must Think Beyond the Lowest Common Denominator

As one commenter aptly pointed out, “The past decade of app experiences has been designed for the lowest common denominator.” This mindset has held us back. But Network APIs, when properly positioned, have the power to elevate app experiences—from "dull" to extraordinary.

Imagine a world where apps deliver immersive, real-time, and personalized experiences powered by network capabilities like edge computing, ultra-low latency, and advanced APIs. To get there, we need to:

• Engage early and often with developers and enterprises.
• Invest in strategic partnerships to create scalable solutions.
• Deliver value-first experiences that showcase the true power of our networks.

A Call to Action: Let’s Shape the Future

The Telco industry has the tools and technologies to lead the future of the API economy, but it requires bold thinking, relentless collaboration, and a focus on delivering network-first innovation.

We have an opportunity to shift perceptions and move beyond being just connectivity providers. However, this will only be possible if we foster strategic partnerships, engage early with developers and enterprises, and reimagine how we create value together.

Hypotheses for the Community

As we chart this path forward, I’d like to pose two important questions to the community:

1. Will strategic partnerships become the most critical catalysts for the Network API ecosystem, enabling us to gain momentum and capture enterprise mindshare?
2. Can Telcos reimagine their role as ecosystem enablers rather than service providers by collaborating with developers, enterprises, and technology partners to co-create groundbreaking solutions?

These questions go beyond just technology—they challenge us to rethink how we connect, innovate, and solve real-world problems. I’d love to hear your perspectives, ideas, and experiences. Let’s continue this important conversation and work together to shape the future of Telco.