Ericsson announces completion of Aduna transaction
Rhea-AI Summary
Ericsson (NASDAQ: ERIC) has completed the formation of Aduna, a strategic 50:50 joint venture with twelve major global communication service providers (CSPs). The venture, operational since September 2024, focuses on combining and selling aggregated network Application Programming Interfaces (APIs) globally.
The joint venture partners include industry leaders such as AT&T, Deutsche Telekom, Vodafone, and Verizon, among others. The ecosystem has expanded to include additional partnerships with major technology companies like Google Cloud, Microsoft, and Wipro. Ericsson contributed its global network platform to the venture, while maintaining 50% ownership, with the remaining stake split among the CSP partners.
Positive
- Strategic 50:50 joint venture structure with 12 major global telecom operators
- Rapid ecosystem expansion including partnerships with tech giants like Google Cloud and Microsoft
- Leverages Ericsson's existing global network platform
- Strong industry backing from leading telecom operators enhances market potential
Negative
- Complex partnership structure with multiple stakeholders could slow decision-making
- Integration challenges with multiple operator networks and systems
Insights
Ericsson finalizes Aduna API venture, securing strategic positioning in the network API economy with 12 major telecom partners.
The completion of the Aduna transaction represents a significant strategic milestone for Ericsson in the rapidly evolving telecommunications landscape. By establishing this 50:50 joint venture with twelve global communications service providers (CSPs), Ericsson has effectively created a powerful ecosystem for network API aggregation and distribution. This structure gives Ericsson both substantial influence and reduced risk, as the company maintains 50
The venture positions Ericsson at the center of the network API economy—an emerging high-growth segment where telecom network capabilities can be monetized through standardized APIs for developers. This represents an essential diversification beyond Ericsson's traditional network equipment business, creating new recurring revenue opportunities that are software-based rather than hardware-dependent.
The rapid ecosystem expansion is particularly noteworthy. In just ten months since formation, Aduna has assembled an impressive alliance including additional CSPs, major cloud providers (Google Cloud, Microsoft), CPaaS companies (Vonage, Sinch, Infobip), and system integrators (Wipro, Tech Mahindra). This expanded ecosystem substantially increases the potential reach and adoption of Aduna's API platform, creating a potential network effect that could accelerate revenue growth as more developers integrate these capabilities into applications.
By standardizing network APIs across multiple operators through the CAMARA open-source project, Ericsson is addressing a critical industry pain point—fragmentation. Developers previously faced different API implementations across operators, limiting scale. Through Aduna, Ericsson is creating a unified gateway that could potentially become an industry standard, giving the company significant influence over the future direction of network API monetization.
- Aduna now a 50:50 joint venture: 50 percent owned by Ericsson and 50 percent owned by twelve communications service providers (CSPs)
- Aduna has been operational since its formation announcement on September 11, 2024
- Aduna ecosystem comprises CSP, major developer platform companies, global system integrators (GSI), communication platform as a service (CPaaS) companies, and independent software vendor (ISV) partners
Aduna is now owned by AT&T, Bharti Airtel, Deutsche Telekom, Ericsson, KDDI, Orange, Reliance Jio, Singtel, Telefonica, Telstra, T-Mobile, Verizon and Vodafone.
In addition to funding and commercial agreements, the shareholders bring to Aduna a wealth of support in the industry, including through telecom operator relationships, knowledge of the developer community, and expertise in network APIs. Ericsson also contributed its global network platform, on which Aduna will build and refine its offering.
Ericsson holds 50 percent of the venture equity, with the remaining 50 percent held by the above-named CSPs combined.
Aduna CEO, Anthony Bartolo, says: "The closing of the transaction is another important step for Aduna. In just ten months we have built an impressive ecosystem comprising the biggest names in telecoms and the wider ICT industry. The closing provides renewed motivation for Aduna to accelerate the adoption of network APIs by developers on a global scale. This includes encouraging more telecom operators to join the new company, further driving the industry and developer experience."
In addition to the founding venture partners, the rapidly-expanding Aduna ecosystem includes a diverse range of technology and collaboration partnerships. These span additional CSPs worldwide, as well as major developer platform companies, global system integration (GSI) companies, communication platform-as-a-service (CPaaS) companies, and independent software vendor (ISV) companies.
To date these include: e&, Bouygues Telecom, Free, CelcomDigi, Softbank, NTT DOCOMO, Google Cloud, Vonage, Sinch, Infobip, Enstream, Bridge Alliance, Syniverse, JT Global, Microsoft, Wipro and Tech Mahindra - each playing a vital role in advancing the reach and impact of network APIs worldwide.
NOTES TO EDITORS:
Media queries: Media.Relations@adunaglobal.com
Related press release: Global telecom leaders join forces to redefine the industry with network APIs
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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 venture partners include: 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. To find out more about Aduna, visit adunaglobal.com.
ABOUT ERICSSON:
Ericsson's high-performing networks provide connectivity for billions of people every day. For nearly 150 years, we've been pioneers in creating technology for communication. We offer mobile communication and connectivity solutions for service providers and enterprises. Together with our customers and partners, we make the digital world of tomorrow a reality. www.ericsson.com
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SOURCE Ericsson
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