In 2021, Canberra, Australia-based quantum cybersecurity startup Quintessence Labs received an investment from a rather unexpected place.
The startup, which develops solutions that use quantum technology to help companies protect sensitive data, received $25 million AUD in a round co-led by TELUS Global Ventures, the venture arm of Canadian telecommunications giant TELUS.
What was a Vancouver-based telecom company doing investing in an Australian deep tech startup? To Nazim Benhadid, Chief Technology Officer at TELUS, it’s one piece of a much larger strategy.
“We’re now at a point where many experts across the globe say we’re going to have a quantum computer capable of breaking existing encryption schemes in five to 10 years.”
Rainer Iraschko
TELUS
“At TELUS, we are constantly exploring and developing next-gen technology to tackle some of society’s biggest challenges. Embracing cutting-edge technology like quantum computing is part of that work,” Benhadid explained. “We are taking real steps to safeguard our networks and data, ensuring we continue our longstanding history of global leadership in telecommunications networks.”
Every day, Canadians communicate through telecom networks that are protected by complex encryption schemes that ensure privacy and security. Until recently, it was estimated that a traditional computer would need approximately 300 trillion years to break one of these schemes.
But with a sufficiently powerful quantum computer, it could take just seconds.
Contending with the risks of quantum computing is a crucial step in protecting Canadians’ data. For TELUS, it’s another reason to invest in cutting-edge technology.
TELUS is committing $73 billion dollars to significantly expand and improve its network infrastructure, operations and spectrum throughout Canada by 2028. The investments cover initiatives with both immediate and long-term impacts. Among its long-term initiatives, TELUS is exploring the potential and challenges of quantum networks – this includes strengthening Canadian research, supporting leaders in quantum security and enabling real-world testing of quantum-secure solutions.
Quantum’s risks and rewards
Quantum technology, which spans computing, sensing and communications, offers mind-blowing computational power. This tech can tackle complex problems that stump today’s computers–from supercharging drug discovery to revolutionising climate modelling.
But with these opportunities come new risks.
According to Rainer Iraschko, Principal Technology Architect at TELUS, it was theoretically demonstrated in the 1980s that a quantum computer could bypass standard encryption schemes, but doing so would require a very powerful computer.
“We’re now at a point where many experts across the globe say we’re going to have a quantum computer capable of breaking existing encryption schemes in five to 10 years,” he added. “That’s getting pretty close. We’re at a point where we have to do something.”
The federal government agrees. It’s why in 2023, the Government of Canada established a National Quantum Strategy, which includes as one of its core objectives the goal of ensuring the privacy and security of Canadians in a quantum-enabled world. Part of this goal, the federal government states online, will be accomplished “through a national secure quantum communications network and a post-quantum cryptography initiative.”
TELUS views this quantum network as critical to helping safeguard modern telecommunications.
The TELUS investment in Quintessence Labs also marked its strategic entry into quantum random number generators and quantum key distribution systems. These solutions are key to data encryption and protection, giving TELUS a broader lens into tech that could shape the future of its industry.
From concept to reality
Canada is considered one of the world’s leaders in quantum research, but is still in the early stages of transforming this research into commercial products.
That’s why TELUS is looking beyond existing tech and also exploring emerging research.
One of the research projects TELUS is supporting is the Alliance for Research and Applications of Quantum Network Entanglement (ARAQNE), a federally funded, University of Alberta-led initiative focused on solving challenges in distributed quantum computing, where multiple quantum computers work together on computations to distribute the computational load.
The project aims to improve the connectivity of information nodes over long distances and improve the transmission and linking of data between quantum computers. This means finding ways to connect quantum computers and make sure they can share and process data effectively.
Lindsay LeBlanc, Associate Professor at the University of Alberta’s Department of Physics and Canada Research Chair in Ultracold Gases for Quantum Simulation, is leading the ARAQNE project.
In an interview with BetaKit, LeBlanc said a key advantage to having TELUS as a partner is the opportunity to actually explore the applications of ARAQNE’s research. By giving researchers access to TELUS fibre networks, LeBlanc said the telecom giant is helping researchers test quantum solutions in real-world conditions.
“In our ivory tower of academia, we don’t often think about the social impact of this technology, but TELUS, as a consumer-facing organisation, really pays attention to these things because they’re more connected to customers,” LeBlanc told BetaKit.
Iraschko said TELUS’ investments in tech and academic research are aligned with shared excitement about what’s possible through quantum, now and in the future.
“These researchers are equally interested in seeing their research benefit society. So this is a coming together, if you will, between TELUS and academic institutions, driving towards the same end goal,” Iraschko added.
Shaping the Canadian sandbox
In addition to working with academia, TELUS also wants to create the conditions for the private sector to test quantum-secure solutions. To that end, the company partnered on a Québec-based testbed initiative that will allow businesses, including startups, to experiment with quantum systems and applications for telecom networks. TELUS is one of the telecom companies providing access to their fibre-optic network as part of the testbed.
Businesses will be able to access the testbed from multiple locations across the province, including Montréal, Québec City and the DistriQ Quantum Innovation Zone in Sherbrooke.
Each hub will feature multiple sites with diverse capabilities to validate use cases. Depending on how the market and technologies work through this initiative, the testbed might later be used to establish a province-wide quantum communication network.
“The purpose of this testbed is not so much research,” Iraschko said. “We’re at a phase now where we need to test the various systems being developed by vendors to understand their performance, their weaknesses, how we integrate them and how we can do this more cost effectively.”
Beyond better systems
While TELUS is making these large-scale investments to protect their systems, Iraschko and LeBlanc both recognize a deeper purpose to this work. Communication is a fundamental human need, yet it remains out of reach for many in Canada. Less than half of households on First Nations reserves, for example, have access to the Internet speeds that are considered standard in urban centres.
“As we’re developing these new technologies, it’s actually important to think about how we can do things better this time around,” LeBlanc said.
TELUS believes this is not not just a question of digital equity, but an economic imperative, as helping ensure connectivity across urban, rural and Indigenous communities would unlock enormous economic benefits for Canada.
According to the World Bank, every 10 percent increase in wireless and wireline reach stimulates GDP growth of up to 2.8 percent for developed countries—a figure twice as high as Canada’s total GDP growth in 2023.
Today, 575 Indigenous lands are connected to TELUS’ PureFibre and 5G networks, as part of TELUS’ commitment to Indigenous reconciliation and its leadership in enabling connectivity for Indigenous Peoples. By the end of 2025, a further $38 million will be invested to connect 20 Indigenous lands to TELUS’ advanced broadband networks.
Access to broadband is a key driver of positive social and health outcomes. It’s associated with an average life expectancy increase, along with decreased loneliness, better mental health, improved work-life balance, higher graduation rates, and stronger incomes, according to The National Bureau of Economic Research.
“Quantum technology, much like AI’s evolution from an academic idea to a practical tool, is poised to become indispensable,” said Benhadid. “By harnessing the power of quantum communication, we are laying the foundation for a future where industry-best technology solutions and programs are delivering meaningful, positive impacts across Canada.”
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Embracing cutting-edge technology like quantum computing is in our DNA at TELUS—underscoring our unwavering commitment to connect Canadians with the people, resources and information that enrich their lives.
We are committing $73 billion to enhance our network infrastructure, operations and spectrum across Canada over the next five years, ensuring that our customers benefit from the best network experience in the world.
Click here to learn more.
Images courtesy TELUS.