Sparkle Successfully Completes First Test of an International VPN Protected with Quantum Encryption
Arqit Quantum and Telecom Italia Sparkle have successfully conducted a Proof of Concept (PoC) for an Internet Protocol secure (IPsec) tunnel between Italy and Germany, utilizing Arqit's Symmetric Key Agreement (SKA) Platform. Supported by Telsy, a TIM Group cybersecurity company, the PoC confirms the first VPN with quantum-safe encryption. This development marks a significant advancement in network security, providing enhanced encryption methods that safeguard data against future quantum decryption threats. This quantum-safe VPN is software-based, allowing for easy scalability across existing telecom networks. The PoC lays the groundwork for a broader commercial rollout, reinforcing Sparkle's commitment to secure connectivity services.
- Successful completion of the first quantum-safe IPsec VPN PoC between Italy and Germany.
- Utilization of Arqit's Symmetric Key Agreement (SKA) Platform, offering advanced encryption.
- PoC supported by Telsy, a TIM Group company with specific cybersecurity expertise.
- Software-based solution allows for quick and easy scalability across telecom networks.
- Enhances security methods to protect against future quantum decryption threats.
- Lays groundwork for a large-scale commercial launch of quantum-safe VPNs.
- Reinforces Sparkle’s market-leading commitment to secure connectivity services.
- PoC does not guarantee immediate commercial adoption or profitability.
- No specific financial impact or revenue projections provided for the quantum-safe VPN.
- Potential high costs associated with deploying and maintaining quantum-safe encryption technologies.
- Uncertain market acceptance and potential competition from other quantum encryption solutions.
Quantum encryption represents a significant advancement in secure communication, particularly as conventional encryption methods face threats from emerging quantum computing technologies. This development can be a game-changer for the cybersecurity sector, addressing imminent security challenges effectively. Arqit's technology, using Symmetric Key Agreement (SKA), ensures data encryption that cannot be easily broken by quantum computers. This is a important step forward, especially given the rapid advancements in quantum computing.
Additionally, the software-based nature of the SKA Platform implies that it can be seamlessly integrated into existing telecom networks without necessitating extensive hardware overhauls. This greatly reduces deployment costs and time, making it commercially viable and attractive for large-scale implementation.
From a technical perspective, this trial demonstrates the interoperability of advanced encryption techniques with existing network infrastructure, which could accelerate the adoption of quantum-safe methods across the industry. This has the potential to set new industry standards for cybersecurity, compelling other players to upgrade their encryption methods to remain competitive and secure.
The successful Proof of Concept (PoC) for a quantum-safe VPN places Arqit and Sparkle at the forefront of the cybersecurity and telecom industries. For investors, this is an indicator of potential future growth driven by increased demand for advanced encryption solutions. The ability to scale the solution quickly across existing networks opens up significant market opportunities. Enterprises and institutions dealing with sensitive data are likely to prioritize quantum-safe encryption in their security protocols, leading to a strong market demand.
Economically, the collaboration between Arqit and Sparkle could lead to additional revenue streams through the offering of premium secure communication services. This strategic positioning could also attract partnerships with other global telecom operators, expanding their market reach and customer base.
However, investors should be aware of the long-term implications. While the immediate market reaction might be positive, the full commercial rollout and widespread adoption will take time. There will also be competitive pressures as other firms develop their own quantum encryption solutions, potentially affecting market share.
The trial, also supported by Telsy's specific expertise, has confirmed the first Internet Protocol secure (IPsec) tunnel between Italy and Germany with advanced quantum-safe protection methods
LONDON, May 16, 2024 (GLOBE NEWSWIRE) -- Arqit Quantum Inc. (Nasdaq: ARQQ, ARQQW) (Arqit), a leader in quantum-safe encryption, and Telecom Italia Sparkle, the first international service provider in Italy and among the top global operators, announce the successful completion of a Proof of Concept (PoC) on the first Internet Protocol secure (IPsec) tunnel between Italy and Germany using Arqit’s Symmetric Key Agreement Platform. The test was supported by Telsy, a TIM Group company specialized in cybersecurity.
The PoC showcases the integration of Quantum Arqit's technology using Symmetric Key Agreement (SKA) into Sparkle's state-of-the-art network infrastructure, ensuring enhanced encryption methods for data transmission across geographical borders.
This important step marks the creation of a software quantum-safe Virtual Private Network (VPN), standing as a pivotal moment in network security. Being software based, the SKA Platform is quickly and easily scaled across any existing telecom network ensuring that sensitive data remains protected against potential decryption by future quantum algorithms, thereby mitigating the risks associated with evolving cybersecurity threats.
Daniele Mancuso, Sparkle's Chief Marketing & Product Management Officer said: “Our state-of-the-art global network provides critical services to carriers, institutions and enterprises who choose and trust Sparkle’s leading secure connectivity services to keep their data safe. The successful completion of the quantum-safe VPN PoC, preliminary to a large-scale commercial launch, anticipates the potential threat of quantum decryption and confirms our market leading commitment to continuously elevating the security and resilience of Sparkle’s infrastructure.”
David Williams, Arqit Founder, Chairman and CEO said: “Sparkle’s establishment of the first quantum-safe VPN between Catania and Frankfurt signifies a key milestone in telecoms cybersecurity. By leveraging Arqit's SKA Platform, Sparkle is pioneering a new era of secure communication, ensuring the resilience of critical networks against the looming threat of quantum adversaries.”
About Sparkle
Sparkle is TIM Group’s Global Operator, first international service provider in Italy and among the top worldwide, offering a full range of infrastructure and global connectivity services – capacity, IP, SD-WAN, colocation, IoT connectivity, roaming and voice - to national and international Carriers, OTTs, ISPs, Media/Content Providers, and multinational enterprises. A major player in the submarine cable industry, Sparkle owns and manages a network of more than 600,000 km of fiber spanning from Europe to Africa and the Middle East, the Americas and Asia. Its sales force is active worldwide and distributed over 33 countries.
Find out more about Sparkle following its X and LinkedIn profiles or visiting the website tisparkle.com
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About Arqit
Arqit Quantum Inc. (Nasdaq: ARQQ, ARQQW) (Arqit) 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. 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’ Innovation in Cyber Award and the Cyber Security Awards’ Cyber Security Software Company of the Year Award. Arqit is ISO 27001 Standard certified. www.arqit.uk
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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 the 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, and (viii) 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 21 November 2023 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 did Arqit Quantum and Telecom Italia Sparkle achieve with the PoC?
How does the quantum-safe VPN benefit network security?
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What support did Telsy provide for the PoC?
