RSG purchases test and integration license from Arqit to deliver quantum-secure networks and prepare for commercial-scale deployment

Rhea-AI Summary

Arqit Quantum Inc. (Nasdaq: ARQQ) has announced that RSG Telecom has signed a test and integration license for Arqit's NetworkSecure™ technology. The partnership aims to implement quantum-safe encryption solutions across RSG's telecom infrastructures to enhance data protection against cyber threats.

The collaboration leverages Arqit's symmetric key agreement technology (SKA-Platform™) to protect critical and sensitive data from cybercriminals, hackers, and nation-state actors. The cloud-based solution is designed to be highly scalable and secure against both current and future quantum threats.

Positive

• Secured new client partnership with RSG Telecom for NetworkSecure™ technology
• Expansion into both public and private sector network security markets
• Potential for commercial-scale deployment following successful testing phase

Negative

• Initial agreement to test and integration license only
• No financial terms or revenue projections disclosed

Insights

Cybersecurity Analyst

This partnership between Arqit and RSG Telecom represents a strategic positioning in the rapidly evolving cybersecurity landscape. The licensing of Arqit's NetworkSecure™ technology highlights growing industry recognition that conventional encryption methods are becoming increasingly vulnerable to advanced threats, particularly as quantum computing capabilities mature.

What's technically significant here is Arqit's symmetric key agreement technology (SKA-Platform™), which offers mathematical resistance to quantum attacks unlike traditional public key infrastructure. The test and integration license suggests RSG is taking a pragmatic, phased approach - validating the technology's implementation within their infrastructure before potentially broader deployment.

This agreement has particular relevance for critical infrastructure protection and sensitive data transmission, as telecommunications providers become prime targets for sophisticated threat actors. RSG's dual focus on both public and private sector networks indicates they're preparing comprehensive security architecture that can meet stringent governmental requirements while also serving enterprise needs.

While still in testing phase, this represents a meaningful step in the commercialization of post-quantum cryptography solutions, moving beyond theoretical discussions to actual network integration. The cloud-based, scalable nature of Arqit's solution addresses practical deployment challenges that have historically slowed adoption of advanced cryptographic technologies.

Financial Analyst

This test and integration license with RSG Telecom represents a positive step in Arqit's commercialization strategy, though investors should note this remains an early-stage agreement with undefined revenue impact. For a company with a relatively modest $160 million market capitalization, securing partnerships with established telecommunications providers is crucial for validating their technology's market viability.

The announcement follows the classic enterprise sales model: beginning with testing and integration before potentially expanding to full commercial deployment. While financial terms remain undisclosed, these preliminary licensing arrangements typically generate near-term revenue but can establish pathways to more substantial commercial agreements.

Particularly noteworthy is the focus on both public and private sector applications, potentially opening multiple revenue streams if successfully implemented. Government contracts often provide stable, long-term revenue opportunities in the cybersecurity sector, while commercial deployments can scale more rapidly.

The critical question for investors centers on conversion timeline - how quickly this testing phase might transition to commercial-scale implementation and meaningful revenue generation. Without specific contractual milestones or financial terms disclosed, it's premature to quantify the potential impact on Arqit's financial performance. This represents positive momentum in their go-to-market strategy, though material financial impact remains to be demonstrated.

LONDON, April 10, 2025 (GLOBE NEWSWIRE) -- Arqit Quantum Inc. (Nasdaq: ARQQ, ARQQW) (Arqit), a leader in quantum-safe encryption, announces RSG Telecom (RSG), an industry leader in providing state-of-the-art telecommunication solutions, has signed a test and integration license for Arqit’s NetworkSecure™ to bring cutting-edge symmetric key cryptography technology to secure both its public and private sector networks.

The collaboration will see Arqit’s NetworkSecure quantum-safe encryption solution deployed across RSG telecom infrastructures, enhancing data protection in the face of increasingly sophisticated cyber threats.

By leveraging Arqit’s unique symmetric key agreement technology (SKA-Platform™), RSG will enable its clients to protect their most critical and sensitive data from cybercriminals, hackers, and nation-state actors. This alliance highlights RSG’s commitment to ensuring a safer digital environment for enterprise and governmental organizations worldwide.

Andy Leaver, CEO Arqit, commented:

“Today’s cyber landscape is more complex and dynamic than ever before. By implementing Arqit’s NetworkSecure RSG is safeguarding their partners and customers from the next wave of cyber threats, ensuring the confidentiality and integrity of their customers’ communications.”

Brent Grisdale, CEO of RSG Telecom, stated:

“We are excited to work with Arqit to provide an advanced cybersecurity solution that meets the highest standards of protection. By integrating Arqit’s technology into our network offerings, we’re empowering our clients to confidently navigate the evolving cyber threat landscape.”

Arqit’s advanced symmetric key cryptography technology is cloud based, highly scalable and designed to protect against both current and future quantum threats. The partnership is poised to deliver immediate benefits to clients, accelerating the adoption of secure communications.

For more information about Arqit’s advanced cybersecurity solutions, please visit www.arqit.uk.

Notes to Editors

About RSG

RSG Telecom is a leading provider of advanced telecommunications infrastructure and services, delivering innovative, resilient, and secure network solutions across North America. With deep expertise in engineering, deployment, and operational support, RSG Telecom enables mission-critical connectivity for industries including transportation, energy, and public safety. The company focuses on building next-generation communications systems—from fiber and wireless networks to intelligent infrastructure and digital security frameworks—that support the evolving needs of smart cities and enterprise customers. RSG Telecom is committed to driving digital transformation through reliable, future-ready technology. For more information, visit www.rsgtelecom.com.

Media Contact:
Kyle Scutt
Vice President of Marketing and Business Development
kyle.scutt@rsgtelecom.com

About Arqit
Arqit Quantum Inc. (Nasdaq: ARQQ, ARQQW) supplies a unique encryption software service which makes the communications links of any networked device, cloud machine or data at rest secure against both current and future forms of attack on encryption – even from a quantum computer. Compatible with NSA CSfC Components and meeting the demands of NSA CSfC Symmetric Key Management Requirements Annexe 1.2. and RFC 8784, Arqit’s Symmetric Key Agreement Platform uses a lightweight software agent that allows end point devices to create encryption keys locally in partnership with any number of other devices. The keys are computationally secure and facilitate Zero Trust Network Access. It can create limitless volumes of keys with any group size and refresh rate and can regulate the secure entrance and exit of a device in a group. The agent is lightweight and will thus run on the smallest of end point devices. The product sits within a growing portfolio of granted patents. It also works in a standards compliant manner which does not oblige customers to make a disruptive rip and replace of their technology. In September 2024, Arqit was named as an IDC Innovator for Post-Quantum Cryptography, 2024. Arqit is winner of two GSMA Global Mobile Awards, The Best Mobile Security Solution and The CTO Choice Award for Outstanding Mobile Technology, at Mobile World Congress 2024, recognised for groundbreaking innovation at the 2023 Institution of Engineering and Technology Awards and winner of the National Cyber Awards’ Cyber Defense Product of the Year 2024 and Innovation in Cyber Award 2022, as well as the Cyber Security Awards’ Cyber Security Software Company of the Year Award 2022. Arqit is ISO 27001 Standard certified. www.arqit.uk

Media relations enquiries:
Arqit: pr@arqit.uk

Investor relations enquiries:
Arqit: investorrelations@arqit.uk

Caution About Forward-Looking Statements

This communication includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements, other than statements of historical facts, may be forward-looking statements. These forward-looking statements are based on Arqit’s expectations and beliefs concerning future events and involve risks and uncertainties that may cause actual results to differ materially from current expectations. These factors are difficult to predict accurately and may be beyond Arqit’s control. Forward-looking statements in this communication or elsewhere speak only as of the date made. New uncertainties and risks arise from time to time, and it is impossible for Arqit to predict these events or how they may affect it. Except as required by law, Arqit does not have any duty to, and does not intend to, update or revise the forward-looking statements in this communication or elsewhere after the date this communication is issued. In light of these risks and uncertainties, investors should keep in mind that results, events or developments discussed in any forward-looking statement made in this communication may not occur. Uncertainties and risk factors that could affect Arqit’s future performance and cause results to differ from the forward-looking statements in this release include, but are not limited to: (i) the outcome of any legal proceedings that may be instituted against Arqit, (ii) the ability to maintain the listing of Arqit’s securities on a national securities exchange, (iii) changes in the competitive and regulated industries in which Arqit operates, variations in operating performance across competitors and changes in laws and regulations affecting Arqit’s business, (iv) the ability to implement business plans, forecasts, and other expectations, and identify and realise additional opportunities, (v) the potential inability of Arqit to successfully deliver its operational technology, (vi) the risk of interruption or failure of Arqit’s information technology and communications system, (vii) the enforceability of Arqit’s intellectual property, (viii) market and other conditions, and (ix) other risks and uncertainties set forth in the sections entitled “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in Arqit’s annual report on Form 20-F (the “Form 20-F”), filed with the U.S. Securities and Exchange Commission (the “SEC”) on 5 December 2024 and in subsequent filings with the SEC. While the list of factors discussed above and in the Form 20-F and other SEC filings are considered representative, no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realisation of forward-looking statements.

FAQ

What is the purpose of RSG Telecom's test and integration license with Arqit (ARQQ)?

RSG Telecom will implement Arqit's NetworkSecure™ quantum-safe encryption solution to secure both public and private sector networks against cyber threats.

How will Arqit's NetworkSecure technology benefit RSG Telecom's clients?

It will protect clients' critical and sensitive data from cybercriminals, hackers, and nation-state actors using advanced symmetric key cryptography technology.

What technology platform is Arqit (ARQQ) providing to RSG Telecom?

Arqit is providing its SKA-Platform™ and NetworkSecure™ solutions, which offer cloud-based symmetric key cryptography technology for quantum-safe encryption.

When did RSG Telecom announce its partnership with Arqit (ARQQ)?

The partnership was announced on April 10, 2025.