Ericsson announced a key milestone in the Company's strategy to create a global network platform business with network APIs. Ericsson and Deutsche Telekom (DT) are launching a commercial partnership to offer communication and network APIs to developers and enterprises. Building a global platform to expose advanced 5G capabilities - such as Quality on Demand, speed, latency, and location - through easy to consume network APIs is a key component of Ericsson's enterprise strategy.
This will allow developers and enterprises to integrate network features into their applications which will accelerate enterprise digitalization and create new ways for operators to monetize their network investments. Telecom consultancy and research firm STL Partners predicts that the revenue opportunity created by mobile network APIs will grow to over $20 billion by 2028 which is directly addressable by Ericsson's platform business. In addition, Ericsson estimates vastly higher revenue opportunities for operators to be realized through new use-cases based on network APIs.
This will fuel investments in mobile infrastructure to meet a growing demand for advanced network capabilities. A key component in building the global platform is Ericsson's acquisition of Vonage with its Communications Platform as a Service (CPaaS) capabilities and developer community. Today's announcement represents an industry milestone where Deutsche Telekom will offer a portal for APIs powered by Vonage.
Under the brand 'MagentaBusiness API', Deutsche Telekom will offer access to Vonage communications APIs that are currently available as well as new network APIs. The commercial launch is a world-first in the commercialization of network APIs, with a direct interface to Deutsche Telekom's mobile network.