APIs in the Telecom Industry: Benefits, Technologies & Examples
Service quality and price are the top factors influencing telecom customers.1 . Telecom companies started to embrace new technologies and digital transformation to be able to provide high-quality services and reduce costs.
APIs are the cornerstone technology that can benefit the telecommunications sector by making it more innovative and efficient. We explore the top benefits of APIs in the telecommunications sector, providing examples.
Benefits of APIs in the Telecom Industry
1- API as a Revenue Source
Telecom companies can develop their own API that, in addition to providing internal benefits, can generate revenue by providing access to it for a subscription or license fee. For example, Telecommunication companies such as AT&T and Telefonica often monetize APIs by providing access to various services like:
- Messaging APIs (SMS, MMS, Voice) – Telecoms charge developers or businesses to send and receive messages or calls through their networks, often used for two-factor authentication (2FA), customer engagement, or notifications.
- Location APIs – Telecom providers can offer APIs that provide location data based on the mobile network, which can be used for services like logistics, ride-sharing, or emergency response, and charge for access to this data.
- Data as a Service (DaaS) – Some telecoms monetize access to anonymized or aggregated data (e.g., traffic, user behavior, or network performance) through APIs for businesses to integrate into their analytics systems.
Implementing APIs effectively requires robust management solutions. Refer to Top API Management Tools for a comprehensive review of leading platforms that can help telecom companies manage their APIs efficiently.
2. Integration With Emerging Technologies
REST and JSON
Most telecom APIs are based on REST architecture and use JSON for data exchange. REST APIs are lightweight, easy to implement, and widely adopted.
SOAP and XML
Many legacy telecom systems still use SOAP and XML-based APIs, particularly in cases requiring strict security and transactional guarantees.
WebRTC
Web Real-Time Communication (WebRTC) enables real-time audio, video, and data sharing directly in browsers or apps. Telecom APIs frequently leverage WebRTC to deliver voice and video services.
5G and Network Exposure Functions (NEF)
With 5G, APIs exposed through the NEF allow third parties to customize network capabilities, including bandwidth allocation, device location, or quality of service (QoS).
To deliver innovative and high-quality services, telecom companies must embrace cutting-edge technologies. APIs play a crucial role in integrating these advancements, such as:
Chatbots
Chatbots offer several advantages to telecom companies, including:
- 24/7 customer support
- Personalized recommendations
- Reduced support costs
APIs enable integration of chatbots and allow telecoms to:
- Embed chatbots into websites and mobile apps
- Gather consumer insights
- Improve chatbot response quality
IoT
The IoT market is projected to exceed $1 trillion by 2030.2 Telecom companies can leverage IoT both internally and externally. IoT devices like sensors and high-end cameras equipped with computer vision can be used to monitor and maintain infrastructure. Assets connected to the cloud can be managed remotely.
Telecoms can offer wide-area IoT solutions, such as wide-area networks, using APIs to collect data from IoT devices and integrate them with infrastructures like the cloud. Data collected may include:
- Device usage logs
- Alerts and notifications
- Time series data
An example of an IoT API in telecom is Verizon’s connectivity API, which supports:
- Device onboarding
- Monitoring device usage and availability (e.g., SMS, connectivity)
- Scheduling updates
- Retrieving device location
- Integrating connectivity management with enterprise systems (ERP, CRM)
See IoT applications for further information.
- REST and JSON: Most telecom APIs are based on REST architecture and use JSON for data exchange. REST APIs are lightweight, easy to implement, and widely adopted.
- SOAP and XML: Many legacy telecom systems still use SOAP and XML-based APIs, particularly in cases requiring strict security and transactional guarantees.
- WebRTC: Web Real-Time Communication (WebRTC) enables real-time audio, video, and data sharing directly in browsers or apps. Telecom APIs frequently leverage WebRTC to deliver voice and video services.
5G and Edge Computing
With 5G technology, telecoms offer APIs to access edge computing resources. This enables applications to process data closer to the device, thereby reducing latency for real-time use cases, such as augmented reality.
APIs play a crucial role in the broader context of digital transformation. For a deeper understanding, refer to our article on Digital Transformation for Telecoms.
Cloud Integration
Telecoms integrate with cloud platforms (AWS, Google Cloud, Azure) via APIs, providing customers with cloud-based services like storage, computing, and data analytics directly through the telecom network.
Blockchain APIs
Telecoms are exploring blockchain for securing transactions and managing decentralized applications (dApps). APIs enable the integration of blockchain technology for identity verification, smart contracts, and secure payments within telecom ecosystems.
Authentication and Security Protocols
Given the sensitivity of telecom data, APIs commonly use OAuth 2.0, token-based authentication, and encryption protocols to ensure secure interactions.
Types of Telecom APIs
Telecom APIs cover a broad range of services, including:
- Messaging APIs (SMS, MMS, RCS)
- Voice APIs (call management, routing, transcription)
- Data APIs (device information, usage statistics, location)
- Billing APIs (mobile payments, account balance, invoicing)
- Authentication APIs (identity verification, number validation)
- IoT APIs (device onboarding, telemetry, remote management)
3- Improving Partner Integration
APIs in the telecom sector enhance partner integration by offering standardized interfaces for efficient data sharing and service collaboration. This accelerates the onboarding of partners, streamlines processes like billing and network provisioning, and reduces operational complexities. As a result, telecom companies can innovate faster and deliver services more efficiently with their partners.
Open APIs for Partner Service Integration
Service offerings: APIs allow partners to integrate services like video calling and messaging into telecom networks without requiring direct access to underlying infrastructure.
Marketplace enablement: Telecoms provide digital marketplaces where partners can offer apps, IoT solutions, and other services directly to customers through a unified API framework.
Partner Onboarding and Management
Automated onboarding: APIs streamline partner onboarding processes (e.g., provisioning, identity verification, account setup), speeding up time to market and simplifying compliance.
Service-level agreements (SLAs): Real-time monitoring and enforcement of SLAs through APIs ensure that partners meet performance standards, like uptime and service quality.
4- Increasing Efficiency
APIs in the telecom sector increase efficiency by automating routine tasks like billing, provisioning, and customer management, reducing the need for manual intervention. They enable real-time data access and integration across platforms, allowing telecom operators to respond faster to market demands and optimize network resources. This streamlining of operations helps reduce operational costs and improve service delivery. Notable efficiencies include:
Automation of Network Management
Network provisioning: APIs automate tasks such as bandwidth allocation, VPN setup, and device management, reducing manual intervention and improving service delivery speed.
Software-defined networking (SDN): SDN APIs dynamically control network traffic and resources based on real-time demand, optimizing efficiency and reducing costs.
Self-healing networks: APIs integrated with AI/ML detect and resolve issues (e.g., congestion, outages) automatically, improving uptime and reducing downtime.
Streamlined Billing and Revenue Sharing
Carrier billing APIs: Enable customers to pay for digital services directly through their telecom bill, simplifying the payment process.
Revenue-sharing APIs: Automate and track revenue-sharing agreements in real time, increasing transparency and easing financial reconciliation between telecoms and partners.
Unified Communication and Self-Service
- Multi-channel access: APIs allow customers to manage their services through mobile apps, websites, and chatbots, offering real-time updates and self-service options.
- Recommendation engines: AI-driven APIs recommend tailored content (e.g., data plans, entertainment subscriptions) based on customer preferences and behaviors.
- Customer data APIs: APIs collect and integrate data from various sources to create personalized offers, service plans, and targeted promotions.
An API case study in the telecom industry
Saudi Telecommunication Company (STC)
STC opted for using APIs instead of creating single-use endpoints and point-to-point integration as it enabled them to be reused by :
- Different internal teams,
- Partners,
- STC subsidiaries.
STC released a direct-carrier billing (DCB) API, which allows STC customers to use their STC bills to pay for partner services. This benefits them as it eliminates the need for creating unique integration for each partner. This enabled them to attract new customers like Netflix, Apple & Microsoft.
STC used Google Cloud’s Apigee API Management Platform in order to manage the growing requirements related to the APIs. For more, watch the following youtube video:
FAQ
Reference Links
Cem's work has been cited by leading global publications including Business Insider, Forbes, Washington Post, global firms like Deloitte, HPE and NGOs like World Economic Forum and supranational organizations like European Commission. You can see more reputable companies and resources that referenced AIMultiple.
Throughout his career, Cem served as a tech consultant, tech buyer and tech entrepreneur. He advised enterprises on their technology decisions at McKinsey & Company and Altman Solon for more than a decade. He also published a McKinsey report on digitalization.
He led technology strategy and procurement of a telco while reporting to the CEO. He has also led commercial growth of deep tech company Hypatos that reached a 7 digit annual recurring revenue and a 9 digit valuation from 0 within 2 years. Cem's work in Hypatos was covered by leading technology publications like TechCrunch and Business Insider.
Cem regularly speaks at international technology conferences. He graduated from Bogazici University as a computer engineer and holds an MBA from Columbia Business School.
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