Vodafone Approach to AI Driven Networks Built on APIs

At FutureNet World 2026 in London, one of the more thought-provoking sessions came from Víctor Fernández of Vodafone Group, who explored what it really means to enable AI to act at scale through APIs. While much of the industry conversation around AI still focuses on models and data, this talk shifted attention to a more practical layer. If AI agents are to move beyond insights and into action, they need structured, reliable and well-designed interfaces into the network and its capabilities.

The central idea was straightforward but important. AI agents cannot deliver value in isolation. They need access to systems, data and control points, and APIs are the mechanism that makes this possible. However, simply exposing APIs is not enough. If they are not designed with AI consumption in mind, they risk becoming bottlenecks rather than enablers.

A key theme was the need to rethink API design principles for an AI-driven environment. Traditional APIs have largely been built for human developers who understand documentation, constraints and context. AI agents operate differently. They require APIs that are easy to discover, clearly defined and consistent in structure. Standardisation becomes critical here, not just for interoperability across systems, but also to allow agents to reliably interpret and use them without ambiguity.

Closely linked to this is composability. AI agents are most powerful when they can orchestrate multiple services to achieve a goal rather than executing a single isolated task. This means APIs should not be designed as standalone endpoints, but as building blocks that can be combined into workflows. In a telecoms context, this could involve stitching together network data, policy controls and service exposure capabilities to enable more advanced automation scenarios.

Another important aspect discussed was scale. As AI agents begin to interact with APIs at a much higher frequency than human users, the load on systems will increase significantly. This introduces new challenges around monitoring, management and optimisation. It is no longer just about whether an API works, but how it behaves under continuous, automated usage. Observability, rate control and intelligent traffic management become essential to ensure reliability.

There is also a governance dimension. Allowing AI agents to take actions through APIs introduces risks if not properly controlled. Mechanisms are needed to define what actions are permitted, under what conditions, and with what level of oversight. This is particularly relevant in telecom networks where certain actions can have wide-ranging operational impacts. Ensuring that AI-driven interactions remain safe and predictable is as important as enabling them in the first place.

The session also highlighted the importance of a developer-friendly ecosystem. Even in an AI-centric world, developers remain central to creating and maintaining the underlying capabilities. Clear documentation, sandbox environments and consistent tooling are all necessary to support both human developers and the AI systems they build. In many ways, the goal is to create an environment where APIs are equally usable by humans and machines.

What stood out from this talk was how it grounded the AI discussion in something tangible. There is a growing recognition that the real challenge is not just building smarter models, but integrating them into operational systems in a way that delivers measurable outcomes. APIs sit right at that intersection.

For operators, this represents both an opportunity and a responsibility. By exposing network capabilities through well-designed APIs, they can enable a new class of applications and services driven by AI. At the same time, they need to ensure that these interfaces are robust, scalable and secure enough to handle the demands of automated consumption.

As the industry continues to explore the role of AI in telecoms, conversations like this help move the narrative forward. They shift the focus from what AI could do in theory to what it needs in practice to operate effectively at scale.

The video of the talk is embedded below:

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How O2 Telefónica is Redefining the Network with NaaS and Open APIs

At O2 Telefónica Germany, the “network of the future” is no longer a distant vision, it’s becoming an operational reality. Under the leadership of Matthias Sauder, Director Networks, the operator has made substantial strides in transforming its end-to-end infrastructure to meet the demands of a highly agile, programmable, and customer-focused future.

At the FutureNet World conference in London (7–8 May 2025), where leading telco and tech stakeholders gathered to explore network automation and AI in telecoms, Sauder shared how O2 Telefónica’s evolution journey spans radio, transport, core, data centres, and cloud landing zones, all underpinned by a strategy that prioritises automation, flexibility, and openness.

The transformation began with a foundational goal: enhancing radio network quality. Once considered the underdog in a three-operator market, O2 Germany set out to radically improve performance by embracing agile practices and reshaping internal structures. Inspired by the Spotify model, the company introduced agility not just in project management but also in technical delivery. This included frequent software release cycles for radio, positioning itself as a global leader in rapid deployment and continuous integration.

A key initiative known as Tech Strategy 25 laid the foundation for modernising radio, transport, and core networks. Today, over 80 percent of the strategy has already been executed. With a largely cloud-native core in place, O2 Telefónica is among the pioneers of this architectural shift. Its collaboration with Ericsson produced one of the world’s first cloud-native digital cores, while a parallel effort with Nokia deployed core services for one million users in a public cloud environment.

The rationale behind both cloud-native and public cloud approaches is clear. Legacy architectures no longer support the operational agility or cost efficiency needed in today’s competitive telecom landscape. Cloud-native systems enable advanced capabilities such as continuous integration, continuous delivery, and seamless in-service software upgrades (ISSU). O2 Telefónica has shown these upgrades can be executed without disrupting live customer services, challenging the long-standing perception that such practices are too risky for telco-grade reliability.

Beyond infrastructure, the company’s future network model hinges on the integration of open APIs and Network-as-a-Service (NaaS) capabilities. These aren’t abstract concepts, they’re practical tools enabling agility, programmability, and new revenue streams. Open APIs expose network functions to external developers and partners, unlocking opportunities for co-creation and monetisation that were previously out of reach.

This openness also extends to industry partnerships. A standout example is the company’s collaboration with Siemens, which now leverages O2's slicing capabilities to deliver tailored network services to its own customers. These kinds of arrangements demonstrate how NaaS, built on secure and standardised APIs, can unlock vertical-specific innovation.

But transformation isn’t just about technology, it’s also about mindset and culture. Simplifying and standardising network configurations (for example, reducing radio setups from over a hundred to just two) and promoting a service-centric approach are part of a broader shift. The focus is firmly on use cases and customer value, avoiding the trap of deploying technology for its own sake. Every new system or tool must demonstrate end-to-end value.

O2 Telefónica also recognises that data, rather than AI alone, is the foundation of intelligent automation. Without a robust data strategy, ambitions around AI, closed-loop automation, or service orchestration are unlikely to succeed. The company’s investment in OSS transformation and data-driven operations is laying the groundwork for intelligent networks that can scale, adapt, and optimise in real time.

As the line between network and IT continues to blur, O2 Telefónica is aligning its BSS, OSS, and IT systems with its network strategy. This integrated approach supports holistic innovation and positions the company to deliver services with faster time to market and greater cost efficiency.

The transformation journey shared by Matthias Sauder is more than a technical roadmap, it’s a call for industry-wide disruption. With revenues flat and operational costs rising, embracing NaaS, open APIs, and cloud-native infrastructure is no longer optional. It’s the only viable path for telcos to stay competitive, innovative, and relevant in a software-defined, platform-centric future.

Sauder’s full presentation at FutureNet World provides deeper insight into this journey. You can watch it below: