More
    Home5G & BeyondDevelopers keen to use 5G APIs, operators aren’t ready

    Developers keen to use 5G APIs, operators aren’t ready

    -

    This is according to the ‘largest study of developers to date on the topic’ by Kearney

    Global consultancy Kearney  found that communication service providers (CSPs) risk missing out on the next opportunity to monetise 5G in the form of 5G APIs.

    Its survey found that 60% of developers would start using 5G APIs within a year if the technology were ready, but it’s not and has a way to go. Kearney says its research on developers is the largest study of developers so for on the topic.

    The figure above from Kearney’s report shows how developers are at the heart of the 5G API ecosystem, and the developer ecosystem flywheel.

    The report, The 5G API ecosystem is ready, but are communications service providers?, assesses the gap between developers’ readiness for 5G APIs and CSPs’ ability to capitalise on the market opportunity.

    Nearly two thirds (63%) of developers place high or very high value on the enhanced connectivity that 5G APIs will bring to their projects and 95% of developers are prioritising 5G APIs and enhanced connectivity in their roadmaps. But only 46 operators globally have deployed the 5G Standalone cores needed to make this happen. 

    Jesper Larsson, Partner at Kearney, comments,“This is the first real value creation opportunity we have seen for the industry in a very long time, but operators are not moving fast enough to take advantage of it. Without deliberate action soon, we may remain in an impasse for some time waiting for the real promise of 5G to come to life.”

    Four future scenarios

    Kearney modelled four scenarios for the future 5G API ecosystem, each is influenced by the following factors: the degree of difficulty in integrating 5G APIs into applications; concurrent growth of various device connection types; and the influence of the perceived underlying value of adopting this technology.

    The scenarios range from The Impasse, where CSPs continue to act as a “dumb pipe” with limited uptake of APIs, to Open Networks, where regulators or another party steps in to spur innovation and influence API development standards. This leads to distribution that’s heavily weighted toward third-party channels with limited value accruing to CSPs.

    Kearney points out these scenarios are not inevitable: telcos can shift the likely outcome and improve the addressable market by taking early decisive action to generate two more promising scenarios, where operators collaborate to set API standards and orchestrate API access, resulting in widespread adoption and monetization, with CSPs rewarded for their action.

    Find the full report here