The telecommunications sector is undergoing rapid transformation as a result of innovations like quantum communications, which could revolutionize security, alongside advancements in fiber optics and 5G. As major corporations and innovative startups explore quantum technologies, Europe is emerging as a key player in this evolving landscape.
According to a report by Infinity, an ecosystem support branch of Quantum Delta NL, Europe is a significant player in the quantum sector. Out of the 100 quantum startups, scaleups, and SMEs catering to the telecom industry, a notable 32% are based in continental Europe.
Germany, the Netherlands, France, Switzerland, and Spain are key hubs, while the United Kingdom and Ireland contribute an additional 14%. This European presence underscores the region’s commitment to integrating quantum technology into commercial applications.
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Progress in Quantum Technology
Europe’s progress in quantum technology is already tangible. The continent boasts over 25 quantum networks in various stages of deployment. Noteworthy projects include a commercial quantum network in London and a collaboration between BT and Toshiba Europe.
In response to the escalating risks posed by quantum computing to conventional network security, BT and Toshiba have unveiled plans to develop and test the world’s first commercially available quantum-secured metro network. This cutting-edge network will link locations across London’s Docklands, the City, and the M4 Corridor, offering data services protected by Quantum Key Distribution (QKD) and Post-Quantum Cryptography (PQC).
An EU-wide quantum communications initiative was also spearheaded by Deutsche Telekom. The European Commission has greenlit a major advance in secure digital communication with the launch of this new project led by Deutsche Telekom. The initiative, known as “Nostradamus,” will build a testing infrastructure for Quantum Key Distribution (QKD) to assess European-made QKD devices. Partners include Thales, the AIT Austrian Institute of Technology, and various industry and academic experts.
This effort supports the development of EuroQCI, a secure, pan-European communication network utilizing quantum technology. The EuroQCI initiative aims to enhance security for data centers, communication networks, and critical infrastructure like hospitals and power plants, marking a key step in the EU’s cyber security strategy.
“Telecom companies are becoming a driving force for real-world adoption of quantum technology,” stated Teun van der Veen, Quantum Lead at the Netherlands Organisation for Applied Scientific Research (TNO). “They are at the forefront of integrating quantum into existing infrastructures and for them it is all about addressing end-user needs.”
Quantum networks leverage principles such as superposition and entanglement to enable ultra-secure communication channels. These networks can utilize various mediums, including optical fibers, free-space optics, and satellite links, to establish connections that are theoretically impervious to hacking. The potential applications are vast, ranging from secure data transmission between data centers and space communications to creating a global quantum internet and enabling blind cloud quantum computing.
Meanwhile, industry giants like Ericsson, Nokia, Vodafone Group, IBM, and Intel have urged European Union (EU) officials to take swift action to strengthen the region’s position in the industrial internet age. “Europe must seize the opportunity to become a global leader in the industrial internet, capitalizing on the potential of emerging technologies like AI, quantum computing, and 5G standalone (5G SA) connectivity,” the five players stated.
The European Space Agency (ESA) and the UK Space Agency are also contributing to this momentum by enhancing ECSAT’s pioneering 5G/6G facility. Their collaboration aims to establish a space quantum laboratory and develop advanced satellite services, which are vital for the UK’s economy.
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QKD for Encryption
A key technology within the evolution of this domain is Quantum Key Distribution (QKD), which allows parties to create a shared key known only to them, used for encrypting and decrypting messages.
Infinity’s report highlighted QKD as the most popular quantum technology in the telecom sector.
One company making significant strides in this area is Q*Bird. Based in Delft, Q*Bird recently secured EUR 2.5 million to advance its QKD product, Falqon, which is currently undergoing trials within the Port of Rotterdam. Ingrid Romijn, Q*Bird’s Co-Founder and CEO, noted that there is a growing interest in quantum communications across the EU’s digital infrastructure as well as the importance of scalable solutions to protect data communications.
Additionally, Sparkle’s successful trial of quantum-encrypted VPNs marks a major milestone, reflecting the region’s growing focus on quantum security.
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PQC for Prevention
Post-Quantum Cryptography (PQC) is another crucial area of focus. While the so-called “Q-day” (when a quantum computer might compromise current encryption standards) is likely still a way off, the development of PQC algorithms aims to safeguard against both classical and quantum threats. As quantum computing technology evolves, ensuring that existing cryptographic methods can withstand future quantum attacks becomes increasingly critical.
Several European companies are leading the development of Post-Quantum Cryptography (PQC) to protect against future quantum computing threats. Notable pioneers include ID Quantique (Switzerland), specializing in quantum-safe security solutions; PQShield (UK), focused on quantum-resistant cryptographic products; and Cryptomathic (Denmark), which is developing secure encryption and key management systems. Major players like Thales Group (France) and Siemens (Germany) are integrating quantum-resistant algorithms into their cybersecurity solutions, while Atos (France) is advancing quantum-safe encryption tools and Infineon Technologies (Germany) is incorporating PQC into hardware solutions for secure elements and IoT devices. These efforts are crucial in preparing for a post-quantum world.
Additionally, the European Telecommunications Network Operators’ Association (ETNO) is calling for an overhaul of EU telecom policies. Their proposals include launching projects in distributed cloud infrastructure, establishing EU Open RAN labs, and nurturing a quantum cryptography ecosystem.
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A Quality, Quantum Future
Despite the promising advancements, Europe’s quantum technology sector faces challenges. The report revealed that only 42% of quantum telecom startups globally have secured external funding, amounting to EUR 1.9 billion. While the EU demonstrates forward-thinking initiatives like Deutsche Telekom’s network project, the U.S. continues to lead in private sector activity and investment.
To overcome these hurdles, Europe needs to enhance its support and investment in quantum tech startups. This includes increasing regulatory standardization, fostering industry collaboration, and providing early-stage support. Addressing these challenges will be crucial for Europe to maintain its leadership position and drive the sector forward.
The market opportunities for quantum communications are significant, particularly for government agencies, financial institutions, and sectors like energy, defense, space, and technology. As telecom companies and startups continue to push the boundaries of quantum technology, Europe’s role will be instrumental in shaping the future of secure communication. With its robust network of innovators and strategic initiatives, the continent is well-positioned to lead the charge in the quantum revolution.
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