Telcos to spend over $6 bn by 2030 in quantum key distribution: Study

Telecom operators will cumulatively spend over $6 billion in developing and implementing quantum key distribution (QKD) between 2025 and 2030, according to the latest report released by Juniper Research on Tuesday.

As per the study, the investment will be driven by the acceleration of quantum computing and its potential use by fraudsters. “With traditional network encryption methods vulnerable to quantum computing, this investment is vital to protect the security of telecoms networks, notably for enterprise users,” Juniper Research said in its findings.

The QKD communication method leverages quantum mechanics to create encryption keys that cannot be intercepted by fraudulent actors, which in turn, increases the network security.

However, the scalability of QKD solutions is the most prominent concern for telcos as they deploy nationwide quantum-secure networks.

QKD hardware, such as quantum random number generators that create encryption keys, is expected to be the largest QKD cost, as telecom carriers must implement quantum-capable hardware over their extensive networks, said Juniper Research.

As these networks grow, telcos must implement tools that enable the real-time management of quantum cryptography, as per the research firm. It added that artificial intelligence (AI)-driven network management platforms and quantum network simulators could be two key value-added offerings.

“As network operators increasingly monetise their networks through enterprise services, it is imperative that they provide protection against quantum threats in the future. By investing in QKD now, operators position their networks best to capitalise on the growth of enterprise network users,” said research author Michelle Joynson.