Telcos at a turning point: Why Network-as-a-Service secures future growth

Embarking on a new year, it's customary to reflect on emerging trends and developments shaping various industries. Turning our attention to the telecommunications sector in 2025, we observe a landscape heading significant transformation, with network operators facing unprecedented economic pressures. We spoke to Alexander Clausius, our Head of Digital Products, and learned some exciting insights.

Alexander Clausius:  
The industry is undergoing a fundamental change. Network operators have invested heavily in 5G and the expansion of their infrastructure in recent years - but traditional business models such as mobile tariffs and data packages are no longer sufficient to refinance these investments. At the same time, competition is growing: margins are shrinking, and large cloud providers like Amazon, Google, or Microsoft are pushing into the market with their own communication services.  

This means Telcos need to find new ways to use their networks economically. Network-as-a-Service (NaaS) is exactly this way. It enables the network to be provided not only as infrastructure but as a flexible, API-driven platform - thus opening up new business opportunities. 

Alexander Clausius:  
Sure! Let's take streaming providers like Netflix or Disney+. They face the challenge of delivering optimal quality to their customers at all times - even with fluctuating network performance. 

With NaaS, a mobile provider could address exactly this: Imagine you want to stream a movie in 4K resolution, but your bandwidth is just not enough. In a classic network, you're left only to be annoyed by jerky images or to change your tariff. 

With an API-driven network architecture, however, the provider could offer a temporary bandwidth expansion directly in the Netflix app - for the next two hours, bookable with one click. Billing runs automatically through your mobile plan or streaming subscription. No tariff change, no long contract changes, but an immediately available, customer-friendly solution. 

This shows how the telco business is changing: Instead of just selling connectivity, it's about enabling targeted value-added services - and that's exactly what opens up new monetization opportunities. 

Alexander Clausius:  
The basis for NaaS is a standardized API architecture. As a technology partner, Tallence develops precisely these interfaces and ensures with our API exposure platform that network operators can provide their services securely, performantly, and in compliance with the General Data Protection Regulation. 

To achieve this, three essential components are required. First, API management, which efficiently provides and manages network interfaces. Second, consent management, which ensures that users can give their consent to network-based services in compliance with data protection regulations. Third, charging integration, which is crucial for telcos to ensure that every usage instance is accurately billed.

We work here, among others, with MATRIXX Software to enable precise usage tracking. 

Alexander Clausius:  
MATRIXX Software is a partner of ours and a leading provider of monetization solutions for the telecommunications industry. The company helps to monetize products and services efficiently, especially in the context of 5G networks. So we work hand in hand.  

In the end, many things come together in this area and many components interlock. That's the exciting thing about it. But we're putting the cart before the horse. 

Let me explain briefly. GSMA Open Gateway, CAMARA and MATRIXX Software form an ecosystem that aims to simplify and standardize the commercialization and use of network APIs. GSMA Open Gateway serves as GSMA’s overarching initiative, establishing a framework for universal network APIs. CAMARA, as the open-source project within this framework, defines, develops, and publishes these APIs. Finally, MATRIXX Software completes the ecosystem by providing a billing solution, offering platforms that are fully compatible with GSMA Open Gateway APIs and CAMARA standards. 

For all this interaction interfaces are fundamental. You need an API exposure platform to be able to transform requests in such a way that the network understands them. And that's where Tallence comes in: The service we're talking about is a highly sophisticated integration service, and that's exactly where we shine. Tallence has been doing this for decades, so it's really our home turf. 

Alexander Clausius:  
Camara has an important role. If every telco develops its own APIs, the potential remains fragmented. Camara provides global standardization for the first time, allowing companies to seamlessly integrate telco services into their applications. 

This means, that banks can use telco data for more secure authentications. Streaming and gaming platforms can optimize individual network resources in real-time and companies with IoT applications can access network analytics to control connected devices more efficiently.
In short: Camara brings NaaS from theory into economic reality. 

Alexander Clausius:  
The numbers speak for themselves. According to Mordor Intelligence, the market for NaaS is growing from $33.91 billion in 2025 to $136.35 billion by 2030 - with an annual growth rate of over 30%. 

Well-known consulting companies predict that telcos can generate up to $300 billion in additional revenue with API-based business models by 2031. And the big players are already moving: Just a few months ago, Ericsson formed a joint venture with twelve leading telcos, including Deutsche Telekom and Verizon, to specifically market network APIs. 

This shows: NaaS is no longer just an exciting technology - it's an essential success factor for telcos in the coming years. 

Alexander Clausius:  
The question is not if, but when. Network operators that strategically align themselves with NaaS today secure a clear competitive advantage in an increasingly API-driven market. 

But companies from industries such as finance, streaming, gaming, automotive, and IoT also benefit enormously. Those who early adopt standardized telco APIs can offer innovative, network-based services - with minimal integration effort. 

Alexander Clausius:  
In Barcelona, we're discussing exactly these topics: 

• How can telcos use their networks more profitably? 
• How can API platforms be economically scaled? 
• Which industries benefit most from this development? 

I invite you to come and talk with us at the Mobile World Congress. Tallence has been a leader in API integration for telcos for years - and we're convinced that now is the right time to actively shape the next evolution stage of telecommunications. 

Thank you for the deep insights into how NaaS is reshaping the telecom industry. As telcos embrace API-driven business models, one thing is clear: those who act now will lead the future.  

We’re excited to see what takeaways you’ll bring back from Barcelona.  
Wishing you a great time at MWC!