Telefonica Germany Explores Quantum Innovation with AWS Trial

Telefónica Germany, owned by Spanish telecom giant Telefónica SA (ES:TEF), is exploring the usage of quantum technologies in its mobile network through a pilot project with Amazon’s (AMZN) cloud unit, Amazon Web Services (AWS). As part of this project, Telefónica Germany, which trades as O2, is aiming to enhance its mobile network efficiency and security using quantum technologies in the AWS cloud.

Telefónica Launches Quantum Pilot Program

This project marks O2 Telefónica’s first use of quantum technologies in collaboration with AWS, Telefónica Tech, and the Polytechnic University of Madrid (UPM).

In this pilot program, AWS and Telefónica will explore optimal mobile tower placement and enhance network security with quantum encryption. Furthermore, Telefónica will leverage the findings to develop 6G networks. The project explores the benefits of quantum technology mainly due to its potential to optimize and transform telecommunications infrastructure.

However, this technology is difficult because it involves working with individual quantum signals. Consequently, this pilot project demonstrates how quantum key distribution (QKD) technology can be effectively used in complex networks to secure real-world applications.

Telefónica’s Ongoing Collaboration with AWS

This is not the first time Telefónica has collaborated with AWS. Last month, Telefónica announced that over one million customers in Germany are now using its advanced, cloud-based core network for mobile browsing and telephony. With this, O2 Telefónica has become the world’s first provider to successfully implement a core network using the cloud infrastructure of AWS.

Is TEF a Good Stock to Buy?

On TipRanks, TEF stock has a Hold consensus rating backed by three Holds and one Sell recommendation. The Telefónica share price target is €3.93, which is 10% below the current share price.

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