TELCOs, APIs and the shift towards TECH-CO

By Doug Makishima, Mobile Ecosystem Forum

Traditionally, a telecommunications company focused on network infrastructure, spectrum management, and ensuring reliable communication services. They provided connectivity services—mobile, broadband, and fixed-line communications—with revenue streams largely dependent on subscriptions and usage-based models. But Mobile Network Operators (MNOs) are now evolving beyond that traditional role, moving from telco to tech-co.

A tech-co (technology company) is centred around software, digital platforms, and innovation-driven services. Unlike telcos, which prioritise infrastructure, tech-cos focus on creating digital solutions, applications, cloud computing, and AI-driven technologies. They often operate with a more agile, customer-centric mindset, leveraging data analytics and automation to drive new revenue streams beyond connectivity.

Many traditional telcos have begun to transform into tech-cos, adopting Network-as-a-Service (NaaS) models to stay competitive.

MNOs and NaaS

NaaS refers to a cloud-based model where businesses can access and manage networking services on-demand without owning or maintaining physical infrastructure. It shifts networking from a hardware-centric approach to a software-driven, subscription-based service, allowing organisations to scale their network capabilities dynamically.

NaaS enables companies to optimise network performance, security, and connectivity through automation and AI-driven orchestration, reducing reliance on traditional, complex network configurations. It provides flexibility by offering services like bandwidth on demand, secure remote access, software-defined networking (SDN), and cloud-managed WAN solutions. This approach aligns with the growing need for agility, cost efficiency, and simplified IT operations, making it particularly valuable for enterprises adopting hybrid and multi-cloud environments.

NaaS transformation allows MNOs to expand formerly internal-only network functions through Application Programing Interfaces (APIs), creating a path to improved security, innovative applications, and enhanced user experiences.

APIs allow external developers and enterprises to access telco capabilities such as messaging (SMS, MMS), voice services, location data, billing, authentication, and network analytics without needing to interact directly with the underlying telecom infrastructure. By exposing these services through APIs, telcos can create new revenue streams, foster innovation, and enable businesses to build customised digital solutions.

NaaS APIs, or network APIs, unlock advanced capabilities—such as SIM Swap, Quality on Demand, Number Verification, and Device Location—which improve existing services and create new ones. Network APIs also support pioneering solutions such as private 5G networks using network slicing which grants enterprises greater autonomy and control over their wireless networks.

Leveraging NaaS allows Mobile Network Operators to accelerate digital transformation for partners and take advantage of new monetisation opportunities.

Industry-wide initiatives like the GSMA Open Gateway are playing a crucial role by promoting standardised APIs across telecom operators. This initiative ensures interoperability and simplifies the process for developers to build applications that work across multiple carriers, fostering a more open and collaborative telecom ecosystem.

Enhanced Security

Network APIs play a pivotal role in enhancing security by strengthening authentication processes and mitigating fraud for organisations. They enable robust device intelligence through features like device fingerprinting, which uniquely identifies users based on their device attributes, and behaviour analysis, which tracks user interactions to flag anomalies. Location verification adds another layer of security by utilising IP address geolocation and mobile network information to validate users' claimed locations. By monitoring network traffic patterns, APIs can detect anomalies and bot activity, ensuring real-time fraud prevention.

These new capabilities enabled by network APIs not only safeguard sensitive data but also protect users from cyber threats.

Additionally, network APIs facilitate multi-factor authentication (MFA) enhancing or replacing methods such as push notifications and SMS verification, providing extra layers of security against unauthorised access. They integrate seamlessly with fraud prevention platforms by offering data enrichment and enabling real-time decision-making, improving risk assessment accuracy. From detecting fraudulent activity through advanced traffic analysis to ensuring secure access through MFA, network APIs offer comprehensive solutions to bolster security and prevent cyberattacks.

Summary

The shift from telco to tech-co represents a profound transformation, with Network-as-a-Service (NaaS) APIs at its core, for mobile network operators (MNOs). By exposing network capabilities like device location, quality on demand, and advanced security features in a standardised way, MNOs are unlocking new possibilities for enterprises, developers, and end-users alike. These APIs empower organisations to innovate with greater speed, enhance security, and deliver personalised, high-quality experiences, while creating fresh revenue streams for operators.

As global rollouts and collaborations demonstrate the practical and commercial viability of NaaS, MNOs are stepping beyond connectivity to become pivotal enablers in the digital ecosystem.

ABOUT THE AUTHOR

Doug Makishima is an advisor to MEF (Mobile Ecosystem Forum), a global trade body established in 2000 and headquartered in the UK with members across the world. As the voice of the mobile ecosystem, it focuses on cross-industry best practices, anti-fraud and monetisation. The Forum provides its members with global and cross-sector platforms for networking, collaboration and advancing industry solutions.  

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