The telecom industry’s shift toward AI-driven operations is accelerating, and two technology providers are joining forces to help operators keep pace.

Digital telecom software firm Circles has signed a strategic collaboration agreement with Huawei to explore the joint delivery of AI-native, next-generation telecom platforms for operators worldwide.

The partnership aims to combine Huawei’s network and cloud infrastructure with Circles’ digital business support system (BSS) software delivered through a vertical SaaS platform. Together, the companies plan to help telecom providers modernize legacy systems, introduce AI-powered services, and unlock new monetization models.

For telecom operators grappling with growing data consumption, complex pricing models, and increasingly demanding customer expectations, the collaboration signals a push toward AI-first telecom architecture.

A Push Toward AI-Native Telecom Infrastructure

Telecommunications companies are under pressure to evolve beyond traditional network operators into digital service providers. That transformation often requires modernizing billing systems, automating customer engagement, and introducing dynamic pricing models tied to real-time network conditions.

Under the new agreement, Circles and Huawei will explore integrating policy control, charging systems, cloud infrastructure, and intelligent automation into a unified platform.

At the center of the initiative is the potential integration between Huawei’s charging and policy management capabilities and Circles’ digital BSS SaaS platform.

The companies say the combined system could enable:

• Real-time monetization through advanced charging and policy orchestration
• AI-driven policy optimization to dynamically manage network performance and resources
• Automated customer lifecycle management powered by data-driven personalization

The goal is to allow telecom operators to launch new digital services faster while simultaneously improving revenue generation and customer experiences.

“Telecom operators are at an inflection point where AI is no longer optional—it is foundational,” said Sanjay Kaul. “By combining Huawei’s network expertise with our AI-native digital BSS platform, operators can accelerate monetization and deploy intelligent services at scale.”

The Role of Digital BSS in Telecom Transformation

Business support systems (BSS) handle critical telecom operations such as billing, customer management, and product catalog management. Historically, many telecom operators rely on legacy BSS platforms that can be expensive to maintain and difficult to modernize.

Circles has positioned its platform as a cloud-native, AI-powered BSS alternative, designed to help operators transition toward digital-first business models.

Integrating that software layer with Huawei’s telecom infrastructure stack could offer operators a more cohesive network-to-digital architecture—linking infrastructure management with customer-facing digital services.

For telecom providers launching 5G services and exploring AI-driven network optimization, such integrations could help streamline operations across multiple layers of the technology stack.

Huawei Cloud as the Deployment Backbone

The partnership also includes plans to explore deploying Circles’ SaaS platform on Huawei Cloud infrastructure.

Running the platform on Huawei Cloud could allow telecom operators to deploy AI-powered systems in environments designed to meet regulatory compliance, data residency requirements, and performance demands across different global markets.

This “sovereign-ready” architecture is increasingly important as governments introduce stricter data governance rules and telecom companies expand into new regions.

According to Alex Kang, Huawei Cloud’s long-standing work with telecom operators positions the company well to support such deployments.

“Huawei Cloud has been deeply engaged in supporting telecom operators’ digital transformation worldwide,” Kang said. “We look forward to working with Circles to develop joint solutions and bring Circles’ products onto the Huawei Cloud Marketplace.”

Beyond Technology: Joint Market Expansion

The collaboration extends beyond technical integration.

Circles and Huawei are also exploring joint go-to-market initiatives, which could include co-selling integrated telecom solutions to global operators. These offerings would target telecom providers seeking to replace legacy operational systems with modern digital platforms powered by AI and automation.

Such initiatives could position the combined stack as an alternative to traditional telecom vendors that provide monolithic infrastructure and operational software.

By pairing Huawei’s large global telecom footprint with Circles’ specialized SaaS capabilities, the companies hope to reach operators transitioning toward software-driven telecom operating models.

AI Becomes the Telecom Industry’s Next Platform

The broader telecom sector is increasingly embracing AI across network operations, customer service, and revenue management.

Operators are exploring AI-driven network optimization, predictive maintenance, automated customer support, and personalized service offerings. At the same time, software-defined networking and cloud-native architectures are reshaping how telecom systems are built and deployed.

Partnerships like this reflect a growing industry consensus: the next phase of telecom innovation will rely heavily on AI-native infrastructure integrated across network and business layers.

For telecom providers navigating the shift to 5G, edge computing, and AI-enabled services, the ability to integrate infrastructure with digital monetization platforms may become a competitive advantage.

Looking Ahead

While the collaboration remains exploratory, the companies say their shared goal is to develop an integrated architecture capable of supporting rapid service innovation, automation at scale, and operational efficiency.

If successful, the partnership could give telecom operators new tools to modernize legacy systems and build intelligent service platforms designed for the AI era.

As the telecom industry moves toward software-defined operations, alliances between infrastructure providers and digital platform companies may become an increasingly common strategy for delivering next-generation telecom services.

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