What’s up with… Network APIs, América Móvil, DataBank

• Network API annual revenues to hit $8.7bn by 2029 – Omdia
• América Móvil reports impressive Q3 service revenues 
• US datacentre operator DataBank raises $2bn

In today’s industry news roundup: Revenues from network APIs are set to surge over the next five years, according to new market analysis from Omdia; giant Latin American telco América Móvil reports a 5.5% ramp in like-for-like service revenues in the third quarter; Australian pension fund fuels DataBank’s latest funding round; and much more!

Research firm Omdia expects telco network API revenues to “surge” over the next five years and be worth $8.7bn in 2029, up from just $161m in 2023, with that growth driven mainly by subscriber identity APIs. “Notably, number verification and SIM Swap APIs [two of the main subscriber identity APIs] are positioned to lead the growth, reducing fraud and securing digital transactions,” according to Omdia. “Number verification APIs offer a faster, more secure alternative to traditional SMS verification. SIM swap APIs, already in use in the banking sector, will see rapid revenue growth from $33m in 2023 to $700m in 2029,” it added. According to Adam Mackenzie, senior analyst for service provider strategies at Omdia, “Network APIs not only provide new revenue directly but can also drive further revenue through connectivity and newly enabled services. Telecom operators have taken an inclusive approach as they recognise that each party in the ecosystem adds to the business case: Hyperscale operators, aggregators, equipment vendors and telecom operators are working together to improve security and quality of applications and customer experience. We expect subscriber identity APIs to make up the bulk of the revenues. SIM swap and number verification are already in use in some major banks and offer clear value to businesses,” added Mackenzie. To find out more about the latest developments in the nascent but fast-developing network API sector, check out TelecomTV’s dedicated API channel, where you can find our exclusive new interview with Deutsche Telekom’s Peter Arbitter, who took the time recently to explain why 12 telcos have teamed up with Ericsson to form a new network API venture, a development that was also discussed earlier this week by Ericsson CEO Börje Ekholm during the Swedish vendor’s third-quarter earnings webcast.    

América Móvil, which has telco operations across multiple markets in Latin America and Europe, has reported an 5.5% year-on-year increase in service revenues (at constant currency exchange rates) to 188.2bn Mexican pesos (MXN) ($9.44bn) and an 11.9% increase in earnings before interest, taxes, depreciation and amortisation (EBITDA) to MXN89.4bn ($4.5bn) for the third quarter of 2024. Total group revenues, including device sales, reached MXN223bn ($11.2bn), up 9.6%. The operator ended September with 315.8 million mobile customers (of which 126 million are on post-paid contracts), 33.2 million fixed broadband users and 12.8 million pay-TV customers. América Móvil noted in its earnings report that it has been given the green light from the National Economic Prosecutor’s Office of the Republic of Chile to take control (with 91% equity ownership) of ClaroVTR, which is currently a 50:50 joint venture with Liberty Latin America (which decided earlier this year to no longer retain a stake in the Chilean operator). América Móvil’s share price edged up slightly on the NYSE to $16.46, giving it a market value of $50.5bn. 

US datacentre operator DataBank has raised almost $2bn in a funding round dominated by a $1.5bn equity investment by pension fund AustralianSuper, which “will become a significant minority owner of DataBank and will join the company’s board of directors,” announced the company, which has raised more than $4bn in the past 12 months. The proceeds will be used to finance growth across DataBank’s footprint of more than 65 datacentres in 27 markets, including the three new campuses it has announced in the past year – in south Dallas, Culpeper (Virginia) and Atlanta. “Those sites, as well as expansions in other markets, will add more than 850MW of power to DataBank’s portfolio, more than tripling its existing 330MW of power deployed, and enabling it to meet unprecedented demand for AI, hyperscale cloud, enterprise and large technology workloads,” noted DataBank in this announcement. 

Middle East telco e& UAE (United Arab Emirates) is using Ericsson’s Network Exposure Function, part of its 5G core platform, “to enhance access to 5G network capabilities by application developers, hyperscale players and enterprises,” the companies have announced. “The collaboration enables e& UAE to expose its advanced network capabilities via network APIs (application programming interfaces), providing a more programmable and adaptable connectivity experience tailored to various application needs,” they added. “Enabling developers to efficiently access our 5G network capabilities is key to fostering innovation in the UAE,” noted Khaled Al Suwaidi, senior VP of core networks and platforms at e& UAE.  

In addition, e& UAE is working with Huawei to introduce a “greener, more efficient, and intelligent voice network” using Voice over New Radio (VoNR) technology and has struck a partnership with Public Safety and Security (PSS), the critical communications business of Airbus, to deliver push-to-talk and push-to-video (MC-PTX) communication solutions to the UAE’s enterprise market

UAE telco du has joined the Orange Alliance programme as part of a “strategic partnership agreement aiming to strengthen their collaboration, drive innovation in the telecom sector and further support the realisation of UAE’s digital vision,” the companies announced during the Gitex Global 2024 event in Dubai. The Orange Alliance programme is designed to enable Orange “to develop and enhance collaboration with telecommunications companies outside its direct footprint. Through this programme, du will have access to Orange’s extensive services and expertise covering a wide range of areas, such as products, platforms, tools, and best practices in management and governance,” the partners noted in this announcement. 

Regional hyperscale datacentre operator Khazna Data Centers (Khazna), which operates facilities in the Middle East and North Africa, has announced the construction of its largest datacentre in the UAE to date. Situated in Ajman, the 100MW, AI-optimised datacentre “reinforces Khazna’s market-leading position as an enabler of AI innovation and its commitment to powering the digital economy for the Age of AI,” according to Khazna.

– The staff, TelecomTV