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The deal enables Deutsche Telekom (OTC:DTEGY) to provide a portal for APIs from Vonage, a company Ericsson acquired for $6.2 billion in 2022. These APIs will facilitate communication between various applications or systems, according to a statement released by the Swedish tech giant on Wednesday.
Under the brand ‘MagentaBusiness API’, Deutsche Telekom will offer access to Vonage communications APIs currently available, as well as new network APIs. Ericsson has also announced plans to establish a global network platform business that will expose advanced 5G capabilities, such as Quality on Demand, speed, latency, and location through these easy-to-consume network APIs.
“Through network APIs, developers and enterprises get easy access to the advanced capabilities of the network to develop entirely new use cases. By creating a global platform business, Ericsson is redefining the industry and creating new ways to innovate through the network,” stated Börje Ekholm, President and CEO of Ericsson.
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. Ericsson also anticipates significantly higher revenue opportunities for operators through new use cases based on network APIs.
Tim Höttges, CEO of Deutsche Telekom, expressed his enthusiasm about opening up their network. “Our network is the very foundation of our company. By opening it up, we are creating new ways for customers and developers to generate value for their business. APIs are a key strategic focus for Deutsche Telekom,” he said.
The partnership comes as Ericsson continues to face scrutiny over its acquisition of Vonage. Last month, Lars Forberg, the managing partner of activist investor Cevian Capital, criticized the deal, stating it “added nothing” from a strategic or financial perspective. However, Ekholm remains confident in the company’s strategy and is focused on creating this new market.
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