At CPaaSAA, we regularly sit down with industry leaders who are shaping the future of communications. In our latest CPaaSAA Talk, I had the pleasure of speaking with Sebastian Schumann (Deutsche Telekom) and Marten Schoenherr (awa.network) about one of the most important developments in our ecosystem: the creation of a fully European CPaaS platform, built and operated within Europe.
The discussion revealed not just the what and how, but the deeper why behind Deutsche Telekom’s move — and why sovereignty, compliance, and flexibility are fast becoming competitive differentiators in CPaaS.
Why Build a CPaaS Platform in Europe?
For years, Deutsche Telekom’s wholesale unit has been a trusted player in the aggregation business — providing voice and SMS termination at global scale. Entering CPaaS and APIs for communications was therefore a natural next step.
Yet DT faced a challenge: the CPaaS market is already filled with powerful global players such as Twilio, Sinch, Infobip, and Vonage. Building another “me too” platform made little sense.
The missing piece? Regulatory compliance and sovereignty.
In Germany especially, enterprises in healthcare, finance, and government operate under some of the world’s strictest rules. Data often cannot leave the country — or even a specific jurisdiction — due to privacy, interception, and national security requirements.
As Sebastian explained:
“The enterprises we speak with often can’t use non-European CPaaS solutions because of data residency and third-country dependency in data processing. For them, sovereignty isn’t a buzzword — it’s the difference between being able to use CPaaS or not.”
Turning Regulation Into a Business Case
What might seem like a constraint quickly becomes a business opportunity. By leaning into sovereignty and compliance, Deutsche Telekom creates a differentiated offer that global vendors cannot easily replicate.
Sebastian put it succinctly: “This is not just about compliance — it’s a better business case for us. There are whole segments of the market that would remain closed to us if we only resold third-party platforms.”
The advantages are clear:
- New revenue streams from enterprises and public sector customers who otherwise couldn’t use CPaaS.
- Higher margins by keeping the value chain in-house, rather than reselling global services.
- Alignment with European priorities around sovereignty and digital independence.
Familiar Technology, Easy to Consume
While the positioning is uniquely European, the technology stack is familiar. Under the hood, the platform uses proven open-source components like FreeSwitch — the same building blocks many global CPaaS players rely on.
On top of that, the APIs are deliberately designed to mirror leading CPaaS standards.
Marten explained: “If you’ve built something on Twilio, you can build on this. The APIs are very similar, so developers don’t face a steep learning curve. We wanted to make it simple and familiar, even though the platform is hosted and run entirely in Europe.”
This combination — European compliance, global developer familiarity — reduces friction and makes it easier for enterprises to switch or add DT as a trusted provider.
The First Customer: Proof of the Model
The platform is already live with its first major enterprise customer — a German organization working with many regulated industries that needed CPaaS but could not use a U.S.-based platform for legal reasons.
Marten highlighted why this matters: “The first customer was critical proof. It showed us the need is real, and that customers will choose a European alternative when sovereignty and compliance are on the line.”
Wholesale Opportunity for Other Telcos
One of the most exciting aspects of the project is the wholesale strategy. Deutsche Telekom doesn’t just want to serve its own customers — it also wants to empower other telcos across Europe.
Sebastian explained how DT sees this playing out: “We know smaller operators face the same sovereignty requirements, but they don’t all have the resources to build their own CPaaS stack. Our platform gives them an option — they can white-label or partner with us and bring a European CPaaS to their markets much faster.”
This wholesale play extends the impact far beyond Deutsche Telekom’s direct customer base. It positions DT as a platform enabler for European telcos, much like global CPaaS players have done at worldwide scale.
Flexibility to Meet Specific Requirements
Building the platform in-house with awa.network also gives Deutsche Telekom something many global CPaaS players struggle with: flexibility.
Enterprises in regulated industries often need specific adaptations — from custom encryption policies to data retention rules to integration with national standards.
As Sebastian noted: “Because we run the platform ourselves, we can adapt quickly to customer-specific needs. That’s not always possible if you just resell a global service.”
Sales Challenges: More Than Just Technology
As promising as the platform is, both Sebastian and Marten acknowledged that sales are not easy.
- The CPaaS market is crowded with players who have far greater marketing budgets.
- Many enterprises are still unaware of the regulatory risks of using non-European CPaaS platforms, so education is critical.
- Deals with regulated industries tend to involve long sales cycles and require sign-off from compliance, legal, and IT security teams — not just the CIO.
On top of that, telco sales teams themselves are not used to selling solutions.
Sebastian was candid: “Telco sales teams are used to selling connectivity. APIs don’t sell themselves. You have to talk about use cases, outcomes, and digital transformation — and that requires a different mindset.”
This cultural shift may be the hardest part of the journey. Building the platform is only half the battle — teaching the organization how to sell it is just as critical.
Cooperation, Not Replacement
It’s important to underline that this is not a zero-sum move. Deutsche Telekom has no intention of replacing established CPaaS providers.
Instead, this is a both/and strategy:
- For global scale and mainstream use cases, Deutsche Telekom continues to partner with major CPaaS players.
- For sovereignty-driven use cases, DT now has its own alternative to offer.
As Sebastian put it: “We’re not trying to replace Twilio or Infobip. This is about giving customers choice. In some cases, we’ll partner with the big players. In others, especially in regulated industries, we can now offer our own solution.”
A European Alternative Takes Shape
The CPaaS market is global, but it’s not uniform. Regulatory and sovereignty pressures create regional differences that can’t be ignored.
With its new platform, Deutsche Telekom — together with awa.network — is showing how Europe can chart its own path:
- Sovereign infrastructure aligned with European laws.
- Developer-friendly APIs that feel familiar to global standards.
- Proven adoption, with the first enterprise customer already live.
- Wholesale opportunities for other telcos to join the ecosystem.
- Flexibility to meet industry-specific compliance needs.
- A sales challenge worth tackling, given the size of the regulated enterprise market.
For CPaaSAA members and partners, this is a powerful reminder that innovation doesn’t always mean copying Silicon Valley. Sometimes it means starting from local needs and building something uniquely suited to them.
Europe is not just a consumer of CPaaS innovation — it’s a builder of its own future.
👉 This discussion will continue at CASA25 in Amsterdam this September, where sovereignty, AI, and the future of CPaaS will all be on the agenda. If you’re a CPaaSAA member, make sure you’ve blocked the dates.
🎥 And if you’d like to dive deeper, you can watch the full CPaaSAA Talk with Deutsche Telekom and awa.network here:
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