[Edaily Reporter YU JIN-HEE ] Artificial intelligence (AI) specialist Moadata(288980)has joined forces with global telecommunications software leader NetCracker Technologies to enter the AI transformation (AX) market for domestic telecommunications carriers.

Moadata announced on the 18th that it had signed a strategic memorandum of understanding (MOU) with NetCracker to enter the Korean telecommunications market and collaborate on AI-based next-generation telecommunications operations systems. The core of this partnership is to combine Moadata’s proprietary AI technology with NetCracker’s core telecommunications operations systems, which have been proven in global markets.

Although NetCracker may be relatively unfamiliar to the general public, it is a leading provider of Operations Support Systems (OSS) and Business Support Systems (BSS) that has established a unique position in the global telecommunications industry. As a wholly-owned subsidiary of Japan’s NEC, the company has been in business for over 30 years and serves more than 250 telecom operators worldwide. It currently maintains global operations in approximately 70 countries.

OSS, which serves as the “brain” of telecommunications carriers, manages the proper operation of nationwide communication networks and equipment, while BSS handles tasks such as managing rate plans, billing, and customer service (CS) for tens of millions of subscribers.

Recently, with the proliferation of 5th-generation mobile communications (5G), cloud computing, and the Internet of Things (IoT), the data and system structures that telecom carriers must manage have become rapidly more complex. Previously, because multiple systems operated in a fragmented manner, there was a limitation: whenever a network failure or abnormal signs occurred, staff had to analyze each system individually to identify the cause.

The two companies plan to shift from this reactive approach to a “proactive prevention system” in which artificial intelligence identifies problems in advance. By integrating Moadata’s AI-based AIOps technology into NetCracker’s global OSS/BSS platform, the AI can precisely analyze vast amounts of telecommunications data in real time to detect anomalies in advance and accurately pinpoint both the cause and the scope of impact.

The global market outlook is also very promising. According to market research firm Straits Research, the global OSS and BSS market is projected to grow approximately 2.9-fold, from $27.12 billion (approximately 38 trillion won) in 2026 to $78.95 billion (approximately 109 trillion won) by 2034. The compound annual growth rate (CAGR) is projected to reach 14.29%. Analysts note that, following the advancement of 5G and the shift to the cloud, demand for AI-driven network automation and autonomous operations is surging, signaling that the replacement cycle for existing systems has arrived.

Moadata plans to collaborate with NetCracker to conduct proof-of-concept (PoC) tests and pursue full-scale commercialization with major domestic mobile carriers. According to the company’s business plan, securing a contract with just one domestic carrier would enable it to achieve large-scale initial deployment revenue of approximately 30 to 40 billion won by 2027.

In particular, since telecom operators’ core operational systems are typically used for long periods once implemented, the initial deployment will lead to stable annual maintenance revenue of approximately 5 billion won, as well as ongoing recurring revenue from additional feature enhancements. Moadata intends to expand its market reach in multiple directions—including other mobile carriers, telecom affiliates, and mobile virtual network operators (MVNOs)—as soon as it secures its first successful case study (reference) in Korea.

A Moadata official emphasized, “Our goal is to combine systems proven in the global telecommunications market with our proprietary AI technology to transform telecommunications networks—which currently respond only after failures occur—into ‘smart networks’ where AI proactively detects issues and makes autonomous decisions,” adding, “We will swiftly establish a successful model in Korea to complete a high-profit business structure that spans from platform development to long-term maintenance.”