APIs in the Telecom Sector in 2024: Top 5 Benefits & an Example
Quality and price are the top 2 factors influencing telecom customers. Telecom companies have to embrace new technologies and digital transformation to be able to provide high-quality services and reduce costs. API is one technology that can benefit the telecommunication sector by making them more innovative and efficient.
This article will explore the top 5 benefits of APIs in the telecom sector with examples.
1- API as a source of revenue
Telecom companies can develop their own API that, in addition to providing internal benefits, it can generate revenue by providing access to it for a subscription or license fee. For example, Telecommunication companies such as :
Provide access to different APIs for a fee. However, if you plan to develop your own API, you must ensure that your API provides the following:
That is why you should test your API rigorously. API testing can detect bugs & defects in an early stage, saving a considerable amount of time & money.
PULSE is an automated AI-based API testing tool that can reduce the effort and cost of testing by 50%. This tool is created by Testifi which works with telecom company Vodafone and other major companies such as Amazon and BMW.
2- Integration with new technologies
To provide high-quality and innovative services, telecom companies need to embrace new technologies. API can help with new technologies such as :
Chatbots can provide many benefits for telecommunication companies by:
- Providing 24/7 support,
- Offering personalized recommendations,
- Reduce the cost of support.
Chatbot APIs provide an efficient way to collect conversations and responses of chatbots. Chatbot APIs can be used to :
- Integrate chatbots into websites and mobile applications,
- Create consumer insight,
- Improve chatbot responses.
Internally, they can use IoT devices to monitor their own infrastructure and physical assets. IoT devices such as sensors and high-end cameras that are equipped with computer vision can be used for maintenance review. Additionally, physical assets can be connected to the cloud and managed remotely.
Externally, IoT has led to the creation of the following:
- Smart offices,
- Smart houses,
- Smart cities.
Telecom companies can offer wide-area IoT solutions such as wide-area networks.
APIs can be used to collect data from IoT devices and integrate them with different infrastructures such as the cloud. Examples of data that can be collected using APIs are:
- Time series of device usage,
- Device logs,
An example of IoT API in telecommunication is :
Verizon connectivity API
This API enables :
- Adding devices,
- Monitoring device usage,
- Monitor device availability for receiving SMS and connectivity
- Schedule updates,
- Getting device location
- Integrate connectivity management to enterprise software systems such as ERP and CRM.
3- New services
APIs provide easy access to information and data from different internal & external sources. APIs enable providing existing resources as a reusable service across different platforms. Additionally, legacy telecom infrastructure can be integrated with APIs to enhance the usage of existing infrastructure. For example, sending an SMS from an application to users can be done by integrating with SMS APIs.
4- Improve partner integration
APIs can facilitate data sharing and access between telecommunication companies and different enterprises. Services that can be exposed to API such as video calling and text messaging can be leveraged to build valuable offerings for enterprise partners and non-partner vendors.
5- Increase efficiency
APIs can increase telecommunication operation efficiency as APIs are:
- cost-efficient when compared to manual data collection.
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,
- 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:
If you are looking for how you can use telecom API in your business, you can reach us:
Cem has been the principal analyst at AIMultiple since 2017. AIMultiple informs hundreds of thousands of businesses (as per similarWeb) including 60% of Fortune 500 every month.
Cem's work has been cited by leading global publications including Business Insider, Forbes, Washington Post, global firms like Deloitte, HPE, NGOs like World Economic Forum and supranational organizations like European Commission. You can see more reputable companies and media that referenced AIMultiple.
Throughout his career, Cem served as a tech consultant, tech buyer and tech entrepreneur. He advised businesses on their enterprise software, automation, cloud, AI / ML and other technology related 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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