As the quantum era approaches, leading telecommunications companies are exploring a range of opportunities presented by this transformative technology. According to the inaugural ‘Q-Beat’ tracker released by STL Partners, 29 telcos worldwide have initiated 75 projects related to quantum technology, with a substantial focus on quantum communication and cybersecurity.
Marina Koytcheva, research director at STL Partners, notes that the most advanced telcos are investing significant resources into quantum technology, anticipating new revenue streams and operational efficiencies. About 80% of recorded projects aim to optimise operations or develop these new avenues.
The primary focus is on quantum communication, specifically demonstrating quantum key distribution (QKD) through fibre optic networks. Some telcos are also experimenting with quantum communication over mobile networks, with initial interest from the financial sector poised to expand into other industries.
In addition to communication, innovative telcos are exploring early-stage quantum computing to enhance their networks, whether it be for cellular towers or satellites. This approach aims to maximise infrastructure investments while delivering superior service quality.
However, the rise of quantum technology also brings potential risks, as it can be exploited by malicious actors. Consequently, a growing number of telcos are prioritising efforts to defend against future quantum threats, particularly in cybersecurity.
STL Partners identified that 44% of the recorded projects focus on post-quantum cryptography (PQC). Some telcos are securing their own operations, while others are developing post-quantum security solutions for enterprise clients and consumers.
Countries in Asia, particularly South Korea, are leading the charge in quantum technology adoption, with SK Telecom at the forefront. Other notable players include major European telcos like Deutsche Telekom, KPN, and Orange, alongside North American giants such as AT&T and Verizon. Toshiba has emerged as a frequent partner, with companies like Adtran, ID Quantique, and Thales also making significant contributions.
Having successfully integrated generative AI solutions into their operations over the past year, telcos are now eager to leverage quantum technology. This ambition aligns with their strategic goals of seizing future opportunities while fortifying against the associated risks.
As Koytcheva succinctly puts it, the telecommunications industry is poised to become a leader in quantum technology utilisation, driven by both innovation and necessity.
