Telcos & AI

Telstra tucks into SQC’s Watermelon

By Ray Le Maistre

Oct 13, 2025

  • Australian tech firm Silicon Quantum Computing (SQC) is developing commercial-scale quantum computing technology
  • It has teamed up with Telstra to test the applicability of the vendor’s quantum-enhanced machine learning system, dubbed Watermelon, for predictive network analytics

Telstra has teamed up with fellow Australian firm Silicon Quantum Computing (SQC) to explore the potential applicability of quantum computing-enhanced machine learning to predictive telecom network analytics. 

Over a 12-month period, SQC, in which Telstra is an investor, and the telco tested and evaluated the vendor’s quantum-enhanced machine-learning system called Watermelon, a “quantum reservoir that generates quantum features that can be used in an AI model”, to see if existing predictive network analytics processes could be improved. Currently, Telstra uses “a combination of machine learning and AI to help predict network performance and detect changes in network patterns. These systems analyse metrics like latency and bandwidth to predict potential variances,” according to the partners. 

Telstra and SQC assessed whether “features generated by the quantum reservoir could be used to forecast network metrics” while also comparing the performance of Watermelon “against a recently developed deep-learning model”, the partners noted in this announcement

According to SQC, “the results were significant”. The Australian vendor explained: “Training and fine-tuning the quantum reservoir took just days, delivering accuracy on par with a deep-learning model that required weeks of effort. Put simply, the quantum-enhanced model matched the performance of Telstra’s current model but was trained much faster.”

The vendor added: “The reservoir also operated efficiently without the GPU hardware demands of the deep-learning model. As cutting-edge AI can be resource intensive, technologies that reduce its cost are increasingly valuable.” 

That will be music to the ears of telcos everywhere. 

Shailin Sehgal, Telstra’s group executive of global networks and technology, stated: “We’re constantly looking ahead to technologies that can help us create smarter connectivity experiences for our customers – from increased personalisation to issue prevention. Quantum computing is a promising frontier we’re exploring. Working with SQC allows us to research the real-world potential of quantum systems in a uniquely Australian context.” 

He added: “This trial shows how quantum capabilities could complement our existing systems and technology to deliver faster insights and better outcomes for our customers. The collaboration, and Telstra’s relationship with SQC, shows how Australian industries and home-grown innovation can work together to shape the nation’s digital future.”

Ah, the old sovereign angle in play once again!

This is a really interesting quantum computing use case for a network operator and we can expect to see more of the same as AI plays a greater role in network operations. 

To stay up to date with the multiple ways in which the worlds of telecom and quantum computing are increasingly intertwined, check out TelecomTV’s dedicated quantum technology page

- Ray Le Maistre, Editorial Director, TelecomTV

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