Aduna secures KDDI as equity partner in groundbreaking API venture

Rhea-AI Summary

Aduna, a joint venture between major telecom operators and Ericsson (NASDAQ: ERIC), has announced KDDI as its newest equity partner. The partnership aims to accelerate the adoption of common network Application Programming Interfaces (APIs) globally.

The venture, launched in September 2024, includes prominent partners such as América Móvil, AT&T, Bharti Airtel, Deutsche Telekom, Orange, and others. KDDI will contribute technical expertise and marketing resources to enhance Aduna's mission of providing open, non-discriminatory access to advanced network capabilities.

The transaction is expected to close later in the year, subject to regulatory approvals. This collaboration strengthens Aduna's platform, which is based on the CAMARA open-source project, driven by the GSMA and the Linux Foundation, aiming to create a standardized environment for developer innovation and industry growth.

Positive

• Strategic partnership with major Japanese telecom operator KDDI expands global market reach
• Addition of technical expertise and marketing resources from KDDI strengthens platform capabilities
• Enhances potential for new revenue opportunities through expanded network API access

Negative

• Transaction completion subject to regulatory approvals and conditions
• Integration timeline and specific financial impact not disclosed

Insights

Technology Industry Analyst

The strategic addition of KDDI to Aduna marks a pivotal expansion that significantly strengthens Ericsson's position in the rapidly evolving telecommunications API economy. This partnership carries several important implications:

Market Expansion & Strategic Value: KDDI's participation extends Aduna's reach into Japan's sophisticated telecommunications market, where advanced 5G deployment and digital transformation initiatives are accelerating. This geographic expansion is particularly valuable as Japan represents one of the world's most technologically advanced telecommunications markets, with high ARPU (Average Revenue Per User) and strong enterprise adoption of digital services.

Revenue Potential & Ecosystem Development: The standardization of network APIs through Aduna creates a powerful platform effect - each new operator joining the platform increases its value exponentially by expanding the addressable market for developers. This network effect could accelerate the monetization of network capabilities, potentially creating new revenue streams for Ericsson and its partners through API access fees and revenue sharing arrangements.

Technical Integration & Innovation Catalyst: The venture's alignment with the CAMARA open-source project, supported by GSMA and the Linux Foundation, positions it to become the de facto standard for telecom API integration. This standardization reduces development complexity and costs, potentially accelerating the creation of new services that leverage network capabilities. For Ericsson, this represents a strategic move to embed itself deeper into the telecommunications value chain, moving beyond traditional equipment sales to become a important enabler of digital service innovation.

The timing of this partnership is particularly relevant as the industry shifts toward more programmable networks and API-first architectures, suggesting potential long-term positive implications for Ericsson's market position and revenue diversification strategy.

• Expands with a major telecommunications operator in Japan - joining forces to redefine the industry.

STOCKHOLM, Feb. 12, 2025 /PRNewswire/ -- Aduna, a landmark venture between some of the world's leading telecom operators and Ericsson (NASDAQ: ERIC), today announced the addition of KDDI Corporation as an equity partner.

Recognized as a global leader in telecommunications, KDDI will further strengthen Aduna's vision of accelerating the adoption and innovation of common network Application Programming Interfaces (APIs) by developers on a global scale.

Aduna partners include América Móvil, AT&T, Bharti Airtel, Deutsche Telekom, Orange, Reliance Jio, Singtel, Telefonica, Telstra, T-Mobile, Verizon, Vodafone and Ericsson to spur innovation in digital services.

As an innovator in telecommunications and digital infrastructure, KDDI will collaborate by sharing expertise and resources, including technical skills and marketing, to enhance Aduna's scope and impact, bolstering the venture's goal to create open, non-discriminatory access to advanced network capabilities.

Kazuyuki Yoshimura, CTO, KDDI, says: "As a pioneer in telecommunications, KDDI is proud to take part in opening the network to exciting new possibilities. By joining Aduna, we're enabling broader access to advanced network capabilities through APIs, empowering developer platforms to drive innovation on a global scale. Each new network integrated into this unified platform helps create an ecosystem where advanced applications can flourish, bringing seamless connectivity and enhanced services to more businesses and consumers than ever before."

Anthony Bartolo, CEO, Aduna, says: "The addition of KDDI underscores Aduna's commitment to reshaping the telecom industry through the power of network APIs. By partnering with KDDI, a global leader with a strong legacy of innovation, we are setting the stage for a new era of possibilities for developers, businesses, and consumers. With the new and more advanced applications that can be built with network APIs, Aduna will unlock new revenue opportunities, transform business operations, and enhance customer experiences with innovative solutions that are truly differentiating."

The inclusion of KDDI highlights Aduna's industry-wide appeal and the joint potential of maximizing revenue opportunities while improving the developer experience.

Aduna was launched in September 2024 to simplify global access to network APIs. The transaction is expected to close later this year, subject to regulatory approvals and other customary conditions.

To find out more about network APIs and Aduna, visit adunaglobal.com. To learn more about KDDI, visit kddi.com.

About Aduna

Aduna is a landmark venture between some of the world's leading telecom operators and Ericsson, dedicated to enabling developers worldwide to accelerate innovation by leveraging networks to their full potential via common network Application Programming Interfaces (APIs). Its partners include: América Móvil, AT&T, Bharti Airtel, Deutsche Telekom, KDDI, Orange, Reliance Jio, Singtel, Telefonica, Telstra, T-Mobile, Verizon and Vodafone. By combining network APIs from multiple operators globally under a unified platform based on the CAMARA open-source project, driven by the GSMA and the Linux Foundation, Aduna provides a standardized platform to foster collaboration, enhance user experiences, and drive industry growth.

About KDDI

KDDI is a telecommunication service provider in Japan, offering multitude of services to individual customers through its "au", "UQ mobile" and "povo" brands, and to corporate customers through its "KDDI BUISNESS" brand. In May 2022, KDDI had stated "KDDI VISION 2030: The creation of a society in which anyone can make their dreams a reality, by enhancing the power to connect". Under this vision, KDDI is promoting its business strategy in the Mid-Term Management Strategy (FY2022-FY2025), defined as the "Satellite Growth Strategy". With a focus on 5G communications, data-driven practices, and generative AI, KDDI will accelerate business growth by providing value-added services in the growth areas of DX, finance, energy, and life transformation (LX) which encompasses five areas of future growth (Mobility, Sports/Entertainment, Web3/Metaverse, Healthcare, and Space). Placing "sustainability management" at the core, KDDI will aim to achieve the sustainable growth of society and the enhancement of corporate value together with our partners, by harnessing the "Satellite Growth Strategy" and strengthening the management base.

NOTES TO EDITORS:

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SOURCE Ericsson

FAQ

What impact will KDDI's partnership have on Ericsson's (ERIC) Aduna venture?

KDDI's partnership will strengthen Aduna's global reach and enhance its network API platform capabilities through additional technical expertise and marketing resources.

When will the KDDI-Aduna partnership transaction for ERIC be completed?

The transaction is expected to close later in 2025, pending regulatory approvals and customary conditions.

How many major telecom operators are now part of ERIC's Aduna venture?

With KDDI's addition, Aduna now includes 13 major telecom operators alongside Ericsson, including América Móvil, AT&T, Bharti Airtel, Deutsche Telekom, Orange, and others.

What is the main purpose of ERIC's Aduna venture?

Aduna aims to simplify global access to network APIs and accelerate innovation by providing developers worldwide with standardized access to advanced network capabilities.