Ray Le Maistre, TelecomTV (00:05):
The development and use of standardized network APIs is becoming an increasingly important part of telco as a platform strategies as communication service providers or CSPs seek to monetize the capabilities of their underlying systems. Well to find out more about this trend, I'm talking today with Erez Sverdlov. He's VP of cloud and network services for Europe at Nokia. Erez, great to see you again. Thanks so much for joining us today. So the concept of telco as a platform is definitely gaining traction. How will this business model lead to new service opportunities for CSPs and what are the key reasons that CSPs are increasingly interested in this telco as a platform approach?

Erez Sverdlov, Nokia (00:56):
Thank you Ray. Not to say that the way we think about telecommunication is changing. The CSP are moving from being only connectivity provider to becoming a platform for innovation and growth. This shift is opening up new possibilities for both the telco and their customer. The massive investment in 5G, which is software driven. As we all know, operators are using network APIs, SDK, and collaborative tools to monetize their network assets and co capabilities by doing so by exposing the network function in a standard way to developers so they can build and sell new application for consumer enterprise and different markets. This created ecosystem where the CSP extend to developers the access to their network. The developers are building application and the enterprise and ve the innovative ideas to the markets. The CSP synergy empowered the CSP to fully unleash the potential of their network through collaboration.

(02:08):
Furthermore, the CSP leverage the vast network data they gain even themselves into better understand the customer behavior, network performance and industry trends. This data can be monetized through data-driven services or even through creation of entirely new business model. Telco is a platform is going beyond traditional telecommunication by partnering with industry players that can leverage their network infrastructure and also services like cloud computing, edge computing or even financial services. If you go into the market in 2003, based on IDC research, there was only 700 million revenue coming out of the APIs. By 28 saying the same research, it'll be 6.7 billion of a market. Ultimately this is a strategic move of the CSP to evolve from a traditional way of connectivity to be a center around additional services and ecosystem of the developers and the end user. This is the real power behind the telco as a platform

Ray Le Maistre, TelecomTV (03:28):
Now as one of the world's largest telecom network equipment vendors that Nokia is always looking to develop more advanced network architectures. So how does Nokia support CSPs as they seek to monetize their network investments Through simplistic API connectivity systems?

Erez Sverdlov, Nokia (03:49):
As I already mentioned, the 5G investment or rollout has greatly increased expectation about the capabilities of the telecom networks. We believe accessibility of this network to a third party application developers will become the key to success monetization of the 5G. The ability to become the 5G network within application is novel and is basically transformed the industry. Nokia was one of the first one that launched its network as a code platform back in September, 2023. Nokia platform brings together network from all around the globe with system integrators, software developers, and the unified ecosystem. It was inspiration from initiative in the market like the GSMA opened gateway, a Linux Foundation of CAMARA.

(04:50):
The network infrastructure ecosystem paradigm is the key factor in this success and what we believe basically that this will be the key for making the CSP successful. Since the launch of this network is a code platform, back in September 23, we already gained significant momentum in the market with 27 global players including British Telecom, dish, global Google Cloud, Infobit Orange, Telefonica Telecom, Argentina in many, many more. This expand well beyond the traditional operators talking about hyperscaler Cpaas platform provider SI and also ISVs. Additionally, with partners like Google Info, we also exposing the network as a code to a new world of developers and service providers driving demands and usage network APIs for no key up platform. Last week we the importance milestone by acquisition of Rapid API technology. This is the largest API hub used by thousands of active developers globally and it's highly skilled already expert accelerate our leadership in API management platform.

(06:16):
With this acquisition, we have a one-stop shop for the APIs. I would like to give one example of the enterprise usage of the APIs with a remote vessel operation in the port of an Nokia with a partnership with Liberty Global iMac and FIFA demonstrated the use of network APIs for safe remote vessel operation in the port of Antwerp. The port of Antwerp is one of the largest port in Europe. Over 50,000 ships annually in today's world, they have to send a captain from the port to the ship to navigate the ship until it get reach to its destination leveraging the 5G. This technology enhance the efficiency by enabling remote piloting, cutting the transit time, fuel usage, manpower, costs less emission and improve the port connectivity and productivity. This using our APIs, the open gateways with the 5G slicing capabilities to ensure the availability of the service. Nokia has around 800 private customers which can use the services and to enhance their innovative way of giving customer a service.

Ray Le Maistre, TelecomTV (07:49):
And Erez, how would you evaluate the progress made by the industry to open up networks to third party developers and what trends do you see in the industry to stimulate a faster move to the telco as a platform model?

Erez Sverdlov, Nokia (08:05):
Okay, so I feel very positive trend and a very optimistic, and there are a few reasons why I'm optimistic about this one. One is the monetary angle and the why. The CSP spent a fortune on the 5G rollout investment. If you at the analyst mason research only in 2022, they spent 103 billion on the 5G network. In 23, 120 2,000,000,024 will not be far apart. So there is need to use the API to create, I would say the ROI return of investment. The other part is the 5G angle of opportunity because 5G introduced by far better capabilities, which until now were never able to use, for example, network quality on demand and location precision, which allow the developer to build application. Using it as an example for this by deploying with city in Belgium across the country, drones, which can be in any location in Belgium in 15 minutes to provide information for security and for other services. The third one is the fact that 5G is a software driven. So basically technical angle is there because we're talking about a software based technology. This was not there if you go back a few years ago on top of all of it with new telecom industry standards and open standard like the Linux Foundation, CAMARA in the GSMA open gateway, which give a standardized way to connect to the APIs network. As such, I believe I'm very optimistic on the future use of the APIs.

Ray Le Maistre, TelecomTV (10:16):
So as we come to the end of our chat today, Erez, what are your final thoughts on this topic and this really important industry trend?

Erez Sverdlov, Nokia (10:27):
So basically I have two things to say. One, the tech was a platform concept enable the service provider to go way beyond the traditional services of connectivity and it basically unlock in new business opportunities across different industries and markets, which require, in order for them to have the ROI for the 5G investments from Nokia, we're committed to leverage the B2B digitization ecosystem by making network as a code easy to use and provide the CSP a viable new pathway to utilize the 5G assets for enterprise and consumer alike to create new value and to monetize the CSP network assets and core capabilities.

Ray Le Maistre, TelecomTV (11:20):
Well that's a great way to wrap up the conversation today. Erez, thanks very much for joining us and discussing this really important industry trend.

Erez Sverdlov, Nokia (11:29):
Thank you, Ray.