Even though quantum technologies may sound like something that is decades into the future, a new report released today shows that quantum technology has already come into being - especially in the telecommunications industry - even though most people still imagine something that is decades in the future. While the quantum technology sector has been stagnating for years in research institutions, commercial momentum has begun to gather in recent years. Many other applications for quantum tech are applicable today — as well as those that have been developed for quantum computing and its future promises. The quantum computing domain has been the focus of most of the developments, but there are many other uses for quantum technologies as well.
There is a growing number of companies and startups across the globe that are commercializing quantum communications, including networks and forms of encryption. Europe also plays an important role in the development of this technology. Currently, 32% of the 100 quantum startups, scale-ups, and small and medium enterprises providing services to the telecom and telecom infrastructure sectors in the country are based in continental Europe.
This is according to a report released today by Infinity, a branch of Quantum Delta NL that specializes in startup and ecosystem support. In addition to Germany, the Netherlands, France, Switzerland, and Spain, the UK and Ireland also have strong ecosystems with 14% each. There are also Approximately 50% of companies that serve as consumers of quantum technology located in continental Europe and 11 percent in the United Kingdom and Ireland.
There are already more than 25 quantum networks in Europe today as of today. There are two quantum communications networks in the EU, which are being developed by Deutsche Telekom and two consortia named Petrus and Nostradamus. In London, BT and Toshiba Europe have launched a commercial quantum network, and in France, there is a commercial quantum network being built by BT and Toshiba Europe. In the Netherlands Organization for Applied Scientific Research (TNO), Quantum Lead Teun van der Veen says that telecom companies are becoming an important force in the adoption of quantum technology in real-world applications.
For them, integrating quantum into existing infrastructures is all about addressing the needs of the end users, so they are at the forefront of integrating quantum into existing infrastructures. To connect systems and transmit data securely, quantum networks take advantage of unique properties of quantum mechanics, such as superposition and entanglement, as a means of connecting systems and transacting data. Quantum channels can be used to transmit information, but they can also be used to be implemented over optical fibres, free-space optics, or satellite links for this to happen. Many scientists believe quantum networks and quantum encryption are virtually impossible to hack, and thus they will be one of the most secure forms of communication available now.
Infinity's report states that such quantum-secure links can be used by data centres, satellites and rockets, military and government agencies, railroads, control centres, healthcare centres, hospitals, and many other sites, such as data centres, hospitals, health care centres as well as military and government entities. Furthermore, quantum networks can also act as the basis for the creation of a global quantum internet, allowing quantum computers to be connected from different locations around the world. The cloud can also offer the possibility of "blind" quantum computing, which can maintain quantum operations' secrecy to those other than the user, allowing them to be used with ease.
There is an increasing number of companies and governments exploring ways to secure their IT infrastructure and data in the age of global geopolitical tensions and looming cybersecurity threats. It is perhaps unsurprising then that Infinity's report concludes that Quantum Key Distribution (QKD) is the most widely used quantum technology in the telecommunications industry as a result of its popularity. By utilizing quantum mechanics, quantum key distribution (QKD) is an encryption and decryption method which is used by parties to generate a private key which can be used only by them.
A recent report highlights the advances of European telecom companies in adopting quantum technology, with one notable example being the Delft-based communications security startup, Q*Bird. The company recently secured €2.5 million to advance the development of its Quantum Key Distribution (QKD) product, Falqon, which is currently being trialled at the Port of Rotterdam, the largest port in Europe.
Ingrid Romijn, co-founder and CEO of Q*Bird, emphasized the growing interest in quantum communications solutions within the European Union's digital infrastructure. "Together with partners like Cisco, Eurofiber, Intermax, Single Quantum, Portbase, and InnovationQuarter, Q*Bird is already testing quantum-secure communications in the Port of Rotterdam using our novel quantum cryptography (QKD) technology," Romijn stated.
She further remarked that moving forward, more industries and companies could implement scalable solutions to protect data communications by leveraging next-generation QKD technology.
Another technology drawing attention is post-quantum cryptography (PQC). While the anticipated "Q-day" – the day when a quantum computer potentially compromises current internet security – is still some time away, many classical cryptography methods will soon be vulnerable to hacking by sufficiently powerful quantum computers.
PQC algorithms are designed to withstand both classical and quantum attacks.
Other quantum technologies with potential applications in the telecom industry include quantum sensors, clocks, simulations, random number generation, and quantum computing. Despite increasing market interest, the report identifies that Europe's quantum technology startups require more support and investment to achieve significant technical and market breakthroughs. Presently, only 42% of quantum tech startups for telecom worldwide have external funding, collectively raising a total of €1.9 billion.
Although the European Union has demonstrated a forward-thinking approach, exemplified by the Deutsche Telekom network project, the United States remains ahead in private sector activity and investment. Challenges include raising awareness among business leaders, expanding the skilled workforce, overcoming technical limitations, and building a stronger business narrative.
These obstacles can be partially addressed through regulatory standardization, increased industry collaboration, and more early-stage support and investment for startups.
Key market opportunities for the quantum communications sector lie in government bodies, including military and security services, financial institutions, critical infrastructure departments, and companies in the energy, defence, space, and technology sectors. Pavel Kalinin, Operations and Platforms Lead at Infinity, commented on the growing collaboration between enterprises and startups in telecom. "This signals the industry’s commitment to integrating quantum solutions into commercial applications. Successful implementation of such technologies will depend on coordinated efforts to prepare the workforce, facilitate collaborations, and set industry benchmarks and standards," Kalinin stated.
