• Nokia launched its network API platform, dubbed Network as Code, in September 2023
• CEO Pekka Lundmark says it has 20 Network as Code partners, including 16 telcos
• He used the vendor’s Q3 earnings call to put network API developments into the broader cloud-native telco and automation context
• And Lundmark welcomes the formation of Ericsson-backed network API joint venture as it will help to “accelerate the API economy”

Much industry attention has been focused on the recently announced network API joint venture being planned by Ericsson and 12 telco partners, but Nokia’s CEO Pekka Lundmark is keen to remind the industry that the Finnish vendor also has traction in the rapidly evolving telco-as-a-platform/programmable networks sector and that, like its Swedish rival, it didn’t need to spend billions of euros on an acquisition to get some skin in the game. 

Lundmark covered a lot of ground during Nokia’s third-quarter earnings webcast on 17 October, and (understandably) was keener to discuss new areas of potential growth than wallow in the challenges that its traditional telco network infrastructure business units are currently facing – see Nokia suffers as capex rebound fails to materialise in Q3.

One of those new opportunities is in the network API aggregation, management and development sector, which has been bubbling away for more than a year now but has recently started to ramp up as network operators formulate their strategies and start to gain real-world experience of exposing their network capabilities to application developers. 

As you’d expect from a major network infrastructure vendor, Nokia spotted this as an opportunity some time ago and, after more than a year of intensive R&D and feedback from the industry, launched its network API platform, Network as Code, and associated developer portal in September 2023, when it named US 5G greenfield operator Dish Network (now Echostar/Boost Mobile) as an initial partner.

Major rival Ericsson has also been putting itself in front of telcos and application developers courtesy of the Global Network Platform development undertaken by Vonage, the company Ericsson acquired for $6.2bn in 2022 (having initially announced the deal in late 2021) but which has proven, subsequently, to be worth much less. 

Vonage has struck a number of network API deals with telcos and hyperscalers and then, in September, Ericsson and 12 major telcos (including Deutsche Telekom) announced plans to form a new network API joint venture. The founders hope the joint venture will make it easier for all parties to exploit the full potential of the network capabilities that can be exposed using network APIs conforming to the specifications being developed by the Camara project – see Camara focuses on network APIs progress.

Lundmark was asked about that particular development and the overall network API market during Nokia’s earnings call and he had plenty to say. 

“I have to say that I'm happy to see that joint venture announcement, because… in addition to the actions that we are taking, it will accelerate the API economy. Why is this important? It will boost operators’ ability to monetise their [network] investments, and the faster that ecosystem develops, and the better we are able to open up network capabilities and the network resources to application developers, the better for operators – ultimately, that will support operator investments into the network,” stated Lundmark magnanimously. 

“Of course,” he continued, “we have taken a slightly different approach than our competitor. We have developed [Network as Code] organically. We came to the conclusion that we don’t need to acquire a CPaaS [communications platform as a service] legacy player to enter this market,” he stated, referring to Ericsson’s acquisition of Vonage. “We have developed this organically and with pretty good progress. We announced this initiative a year ago, and we currently have more than 20 partners across the ecosystem, including 16 CSPs including BT, Telefónica, Orange, Deutsche Telekom and others, so we’re able to offer an extremely attractive base of networks to the developers who want to use our APIs. So overall, this is a good thing for the industry,” noted Lundmark. 

See:

Telefónica and Nokia to boost adoption of network APIs leveraging 5G SA

Orange and Nokia strengthen collaboration with API agreement

Nokia and BT Group sign telco APIs agreement

Nokia announces 5G core deal and network as code platform agreement with NOS Portugal

Telia Finland to deploy Nokia 5G Core SaaS and Network as Code platform

Nokia and Google Cloud help developers create 5G applications faster with telco APIs

But the CEO cautioned that it’s still very early in the network API market’s development: That’s the view also of the analyst team at Omdia, which just published a report suggesting the market is small currently but set for rapid growth in the next five or so years and will be worth $8.7bn by 2029.  

“It will take quite a long time before revenues through APIs will be a meaningful business – we are talking multiple years. But what is even more important right now, from a business perspective, is what’s happening in the core network itself… We have taken the lead in the cloudification of the core network, moving the core network software to cloud-native functions. We want to make the entire core network cloud native. And why is this important? Because cloud nativeness will ultimately enable efficient automation of the network functions – without going fully cloud native, you will not be able to do that in an efficient way” and enable automation and cost efficiencies. “Ultimately, full automation will be needed in order to be able reap all the benefits from the API ecosystem – that’s why this is not only about introducing APIs. This is very much a comprehensive strategy as to what to do to the entire core network to make the resources available to the ecosystem,” stated Lundmark.  

And this is another reason why the network API sector – if it ever amounts to something tangible for the telco sector – will take time to gain scale, as (like everything else that relies on the evolution of network systems) it depends on a number of other moving parts to make it efficient and work to its full capabilities: There’s also the not insignificant matter of developing charging and business models associated with network API usage.

What’s clear, though, is that Nokia is going to play a key role, as will a number of others: When Deutsche Telekom’s Peter Arbitter talked to TelecomTV recently about the strategy behind the network API venture being formed with Ericsson, he noted that the telcos expect there to be a number of marketplaces active in the network API sector – “not [as many as] 25, probably five, six or seven” he noted. With telco engagements already secured, Network as Code looks sure to be one of those platforms. 

- Ray Le Maistre, Editorial Director, TelecomTV