Joint Venture Risks and Rewards: Can AI Automation Lead Telecom Market Disruption?

A New Chapter in Telecom Automation

In a significant move for the telecommunications software sector, PIES Holding Co Pty Ltd and Activeport Group Ltd (ASX, ATV) have announced a strategic joint venture designed to accelerate the adoption of AI-driven network automation. This collaboration combines PIES’ innovative AI-powered low-code/no-code development tools with Activeport’s established network orchestration software, promising to reshape how telecom providers and data centre operators manage and automate their networks.

The joint venture leverages PIES’ platform instruments enterprise software, which dramatically reduces software development cycles by up to 80%, integrating it with Activeport’s orchestration suite that already streamlines network management and service provisioning. The result is a powerful, scalable solution that enables end-users to interact with complex network configurations through intuitive, natural language commands.

Driving Efficiency and Innovation

One of the standout features of this partnership is the introduction of AI-enhanced, low-code/no-code tools that empower telecommunications customers to build self-service portals with minimal technical overhead. This capability not only simplifies the deployment of new services but also accelerates the time to first revenue for Activeport’s growing pipeline of projects.

PIES’ expertise in integrating back-office telecommunications systems further enhances Activeport’s workflow automation capabilities, enabling a more seamless and efficient operational environment. The combined toolset is designed to meet the increasing demand for digital transformation in the telecom and data centre sectors, where agility and automation are critical competitive advantages.

Strategic Market Positioning

The timing of this joint venture aligns with robust growth projections for the global AI market, expected to reach USD 826.7 billion by 2030, with Australia’s AI sector alone forecasted to grow to USD 14.63 billion. By integrating AI-driven software development with network orchestration, PIES and Activeport position themselves to capture significant market share in a rapidly evolving landscape.

Both companies maintain ownership of their pre-existing intellectual property, with jointly developed IP to be managed through mutual agreement. This flexible contractual arrangement, set initially for 12 months, allows for agile collaboration without the complexities of forming a new legal entity, while safeguarding each party’s interests.

Leadership Perspectives

Activeport’s Chairman and CEO, Peter Christie, highlighted the venture as a bold step forward, "This joint venture with PIES represents a bold step forward in redefining telecommunications by applying AI software development techniques to network orchestration solutions. This partnership accelerates our rate of delivery, enhances our product’s capability with advanced AI techniques and reinforces our leadership in software-defined network orchestration software." Meanwhile, PIES CEO Wayne Spencer emphasized the shared vision, "Our collaboration with Activeport amplifies this vision, integrating our AI-driven platforms with their cutting-edge network solutions to deliver innovative outcomes for telecommunications providers and data centre operators."

As the telecommunications industry continues to embrace AI and automation, this joint venture could well set a new standard for software-led network management, offering both companies a competitive edge in a dynamic market.