• Turkcell applies quantum-safe tech to its backhaul network
• AI is driving incredible server sector growth 
• SoftBank’s telecom chief tipped as Masayoshi Son’s successor

In today’s industry news roundup: Turkcell and South Korea’s KT Corp are the latest telcos to announce quantum-safe networking developments; the server market is set to be worth $366bn this year, with GPU-based products accounting for about half that total; SoftBank’s telecom chief is being touted as a successor to Masayoshi Son; and much more!

The quantum-secure networking rollercoaster is slowly but surely gathering momentum. Following recent news from Qunnect, which raised funds from Cisco and other investors, and Orange Business, which has launched a quantum-safe networking service, Turkcell and friends are claiming an “industry first” with a proof of concept (PoC) focused on “quantum-safe protection for precision timing and encrypted data across Turkcell’s mobile backhaul”. The operator has collaborated with Juniper Networks and ID Quantique, the quantum-safe security technology developer that is now a subsidiary of IonQ, to protect its mobile backhaul infrastructure against “quantum threats”. ID Quantique noted: “The PoC showcases how integrating quantum key distribution (QKD) with Juniper’s robust MACsec and IPsec frameworks enables quantum-resilient protection for critical mobile backhaul elements, including precision timing protocols (PTP) and encrypted data, without compromising performance. As quantum computing advances, it is crucial to secure mobile networks, especially timing-reliant 5G backhaul. Precision timing protocols are vulnerable and protecting them must avoid latency that could disrupt service. While MACsec offers strong quantum resistance via pre-shared keys, it lacks automated key distribution, limiting scalability. Turkcell validated MACsec and IPsec encryption using Juniper SRX Series Firewalls, MX and ACX Series Routers, first with a virtual key management system (KMS), then with ID Quantique’s Clavis XG and Clarion KX delivering quantum-generated keys, ensuring seamless integration and timing accuracy. The joint solution successfully preserved 5G timing accuracy and IP traffic integrity, even with quantum-secure key exchange in place.” Prof. Dr. Vehbi Çağrı Güngör, Turkcell’s CTO, noted: “This initiative reflects Turkcell’s commitment to integrating advanced technologies that secure our encryption keys as quantum capabilities advance. With the trial of QKD integrating into our existing Juniper IPsec and MACsec security frameworks, we are laying the groundwork for a quantum-resilient infrastructure and preparing ourselves for future major cybersecurity challenges.” This is a great example of where the industry is evolving from lab-based tests to solutions that are deployable in production networks: We are seeing the same with Qunnect, which is helping to enable next-generation quantum devices to be interconnected over existing inter-city fibre connections.  

And in South Korea, KT Corp is collaborating with quantum-safe encryption tech specialist Heqa Security on advanced secure communications capabilities. “As a leader in next-generation infrastructure, KT is committed to future-proofing our network against the rapidly approaching quantum threat,” stated Kim Moohyun, a manager at KT. “Our collaboration with Heqa Security allows us to stay ahead of the curve by integrating quantum-safe technologies that are both practical and scalable for real-world telecom use.” KT is checking out Heqa’s advanced quantum key distribution (QKD) product line, including its Sceptre Link and Sceptre Duo systems, which are, according to Tel Aviv, Israel-based Heqa, “designed for deployment in carrier-grade environments”.

The value of the server sector is set to surge by an incredible 44.6% year on year to be worth $366bn, according to a new forecast from IDC based on figures from the first quarter of this year, when the market grew by 134.1% year on year to be worth $95.2bn. What’s driving this incredible growth? No prizes for guessing… it’s AI, and in this case, it’s driving demand for servers housing graphics processing units (GPUs). “Servers with an embedded GPU are projected to grow 46.7% year over year, representing almost 50% of the total market value in the year,” noted IDC in this announcement. “The fast pace at which hyperscalers and cloud service providers continue adopting servers with embedded GPUs has fuelled the server market growth, which will be tripling in size in only three years,” it added. And the growth is set to continue, with IDC expecting the value of the server market to hit about $590bn in 2029. Some of that growth will come from the telecom sector, of course, as telcos shift to cloud-native and, increasingly, AI-native platforms to manage and run their networks. 

Masayoshi Son, the founder, chairman and CEO of Japan’s SoftBank Group, which comprises dozens of operations, including Japanese telco SoftBank Corp, the well-known and enormous Vision Fund investment vehicle and the UK-based chip developer Arm. In addition, he’s also the chairman of The Stargate Project, the new Delaware, US-headquartered company promising to invest $500bn over the next four years in building new AI infrastructure for OpenAI and Oracle in the US. And he’s just been in the news for plans to develop Project Crystal Land, a $1tn AI robotics factory in Arizona that, he hopes, will ensure the US dominates the global AI sector. Now he’s back in the news following SoftBank Group’s annual meeting of shareholders, during which he outlined his plans for SoftBank to rival the likes of Amazon Web Services (AWS), Microsoft and Google in providing the leading platform for artificial super intelligence (ASI) – AI with capabilities beyond human intelligence – and also hinted at a succession plan. That won’t happen for a while yet as Son plans to be at the helm of SoftBank Group for another 10 years, but one of the strong candidates, according to Bloomberg, is Junichi Miyakawa, the CEO of SoftBank Corp, who is doing “an extremely solid job” currently, noted Son. SoftBank Corp has also been in the news this week, of course, for its plan to offer high-altitude platform station (HAPS)-enabled services starting next year. 

Once the telco sector figures out how best to monetise 5G, there will at least be plenty of users to target as, according to industry body 5G Americas and research house Omdia, there were 2.4 billion 5G connections up and running at the end of the first quarter of 2025. “Reaching 2.4 billion 5G connections worldwide demonstrates that 5G is not just a regional wave – it’s a global tidal shift, transforming industries, consumer behaviour, and the very fabric of connectivity across continents,” gushed Kristin Paulin, principal analyst at Omdia, which expects the number of 5G connections to hit 8 billion by 2029. The partners also noted that by the end of March this year there were 3.7 billion IoT connections globally, with this figure expected to rise to 4.9 billion by 2029. “Increasingly, 5G is acting as the backbone for these IoT deployments, enabling mission‑critical use cases in smart factories, autonomous logistics, energy distribution and healthcare,” noted 5G Americas. “This shift is driving demand for ultra‑reliable, low‑latency communications, fundamentally changing how cellular networks support the digital economy,” it added. 

Marc Allera, who earlier this year left BT Group, where he had been head of the consumer division (EE), has been hired as the chairman of CVC SportsCo, a new entity set up by private equity giant CVC Capital Partners to help support its portfolio investments in the sports sector, which include Spanish football, Six Nations rugby and the women’s global tennis tour, according to Sky News. Allera is one of a number of BT senior executives to have moved on since Allison Kirkby took on the CEO role at BT and implemented a new strategy early last year.   

Bosnian telco BH Telecom is working with Amazon Web Services (AWS) to offer cloud services in the public sector of Bosnia and Herzegovina. “This partnership positions BH Telecom as a digital integrator, enabling us to leverage AWS’s comprehensive cloud solutions to modernise public sector services across Bosnia and Herzegovina,” stated Amel Kovačević, CEO of BH Telecom, in this announcement. The telco noted that the “collaboration will focus on specific technical areas, including workload migration, with a particular focus on SAP systems, data warehousing solutions, and the enhancement of BH Telecom’s streaming platform,” and will also include “the development of AI-powered solutions, using Amazon Bedrock technology.” Of course!!

– The staff, TelecomTV