Telecom Finally Starts Sharing the Lunch

Sandesh Dixit
Jul 31
3 min read

For decades, telecom was a closed kitchen. Vendors and operators cooked the entire meal — from hardware to software to services — and served customers only what was on the menu. Developers and enterprises had no say in the recipe, no access to the ingredients, and no way to create their own dishes.

But the world has changed. Today, telcos and their vendors are finally starting to share the lunch — opening up their platforms so enterprises, developers, and even rival operators can build value on top of their infrastructure.

🍔 The Old Model: Closed and Controlled

Traditionally, telecom vendors like Ericsson, Nokia, and Huawei built proprietary, end‑to‑end systems. Operators deployed them, but the entire ecosystem was locked.

Operators sold voice minutes, SMS packs, and broadband plans.
Vendors provided tightly integrated hardware and software.
Developers and enterprises had no direct access to network functions.

The result? Innovation bypassed telecom altogether. OTT players — WhatsApp, Zoom, Google Meet, and Twilio — ate the value layer, while telcos were left serving only the basic “pipe.” The networks carried the traffic, but the real money moved elsewhere.

🍕 Why the Lunch is Finally Being Shared

So why open up now? In one word: survival.

Revenue Stagnation
- Core connectivity has become a commodity. ARPU is flat, and competition is brutal.
OTT Dominance
- Messaging, video, and even verification moved to WhatsApp, Zoom, and Twilio. Telcos provide the bandwidth but miss out on the services revenue.
Cloud & API Economy
- Developers expect network functions to be as easy to consume as AWS or Azure APIs.
- If telcos don’t provide them, CPaaS players will.
5G Enterprise Monetization
- 5G promises slicing, QoS, and edge computing. But monetization depends on exposing these capabilities via APIs, not just SIM cards.

🍜 How They’re Opening the Kitchen

1. CPaaS & Open Gateway (APIs for Enterprises/Developers)

Telcos are exposing their core capabilities through APIs, powered by the GSMA Open Gateway initiative and projects like CAMARA.

Vonage (Ericsson), Twilio, Sinch, Infobip lead the way.
APIs include Number Verification, Quality‑on‑Demand, Device Location.
Enterprises can now embed telecom functions directly into their apps without owning infrastructure.

Example: A fintech app uses a Number Verification API to confirm a user’s identity without sending an SMS OTP.

2. Open RAN Interfaces (rApps & xApps for Operators)

Operators are also getting their own buffet. Through O‑RAN RIC platforms:

rApps (Non‑RT RIC) handle AI/ML‑driven long‑term policies like energy savings and traffic forecasts.
xApps (Near‑RT RIC) manage fast decisions like handover optimization and interference control.

Players:

Open: Mavenir, Juniper, Rakuten Symphony
Semi‑Open: Nokia (both rApps/xApps), Ericsson (rApps only)
Closed: Huawei, ZTE

Example: An Energy‑Saving rApp dynamically powers down cells at night, cutting OPEX by up to 25%.

🍩 The Tension on the Table

Let’s be clear: telcos and vendors didn’t suddenly become generous. They resisted opening for decades because:

They wanted to own the entire value chain.
They feared losing service revenue to third parties.
They worried about network stability if outsiders ran software in the RAN.

Now, with OTT players eating their lunch, they don’t have a choice. Opening up is not optional — it’s survival.

The Future: An Open Telecom Feast

The telco lunch table is finally expanding.

Developers and enterprises get access via CPaaS APIs to build richer customer experiences.
Operators get access via rApps and xApps to run smarter, more efficient networks.
Vendors who embrace openness will win by creating ecosystems instead of walls.

The question is no longer whether telcos will share the lunch — it’s who gets the biggest slice of the pie.

💡 If telcos want to stay relevant, they can’t just serve the pipes. They must set the table for a whole new ecosystem — and share the lunch.