Telstra and SQC Use Quantum Tech to Boost Network Predictions

Australian telecom giant Telstra has reported promising results from a year-long collaboration with Silicon Quantum Computing (SQC) that explored the use of quantum technology to improve predictive network analytics – one of the telecom industry’s most complex and data-intensive challenges.

The project marks one of Australia’s earliest attempts to integrate quantum computing into real-world digital infrastructure, moving the technology from experimental research into operational use.

The joint Telstra-SQC research team spent the past 12 months testing how quantum machine learning could enhance the accuracy and efficiency of predicting network performance variations. Today, Telstra uses conventional artificial intelligence and machine learning tools to monitor latency, bandwidth, and other network parameters, allowing the company to anticipate and address anomalies before they disrupt users. These predictive systems are already capable of triggering proactive maintenance or automatic network reconfiguration when needed.

In this new collaboration, SQC introduced ‘Watermelon,’ a quantum-enhanced machine learning framework designed to generate advanced features for AI models using a so-called “quantum reservoir.” The experiment aimed to determine whether Watermelon’s quantum-generated features could improve predictive outcomes or deliver the same level of accuracy as Telstra’s existing deep learning systems.

According to both companies, the results indicate strong potential. The quantum system required only days of training, compared to the weeks typically needed for standard deep learning models, while achieving comparable levels of accuracy. Notably, Watermelon achieved this without relying on large-scale GPU hardware, a key factor in reducing both the computational footprint and energy costs associated with AI-driven analytics.

“These results show how combining SQC’s quantum technologies with Telstra’s network expertise can lead to real-world benefits for customers,” said Shailin Sehgal, Group Executive of Global Networks and Technology at Telstra. “From greater personalization to problem prevention, we’re always looking ahead to technologies that help create smarter, more resilient connectivity experiences. Quantum computing holds enormous potential, and partnerships like this allow us to explore its practical applications within an Australian context.”

Faster Training, Deeper Insights

Professor Michelle Simmons, founder and CEO of Silicon Quantum Computing, described the outcome as an important milestone in the commercial adoption of quantum systems. “This is a significant and exciting step forward,” she said. “Watermelon’s ability to dramatically reduce training time while uncovering complex patterns in data shows how quantum computers are evolving from theoretical concepts to scalable, operational tools.”

While the partnership remains in its early stages, both companies view the experiment as a foundation for further research into how quantum computing can strengthen Australia’s digital infrastructure. By demonstrating tangible improvements in speed and efficiency, the collaboration signals how quantum-enhanced analytics could soon play a key role in managing global telecommunications networks – where precision, scalability, and predictive intelligence are becoming mission-critical.

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