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Quantum Communication & QKD: China Telecom’s Exploration for Scaled Quantum Security Services

by tongxinshijiewang·November 4, 2026

Quantum technology, with quantum computing, quantum communication, and quantum precision measurement as its core directions, is expected to drive disruptive technological breakthroughs and industrial transformation. It has currently entered a critical stage where technological R&D, engineering implementation, and industrial cultivation are advancing in synergy. Major global economies continue to intensify their efforts in the quantum sector, leading to increasingly fierce competition for leadership in quantum technology. Quantum communication is a technology that uses quantum states as information carriers to transmit quantum or classical information via quantum state transfer. Among these, Quantum Key Distribution (QKD) is the most mature technical direction at present, transitioning from pilot demonstrations to engineered applications. QKD can achieve information-theoretically secure key distribution at the principle level, offering vast application potential in critical sectors such as telecommunications, energy, and finance.

This article focuses on QKD as the primary subject of study, systematically reviewing the development status of domestic and international quantum communications and China Telecom's practical explorations. It provides an in-depth analysis of the problems and challenges faced during industrialization, forecasts future trends, and aims to offer references for the industrial development of quantum communication in China.

Development Status of Quantum Communications Domestically and Internationally

Currently, global strategic competition surrounding quantum technology is becoming increasingly intense. In June 2026, the United States signed two executive orders: "Leading the Next Frontier in Quantum Innovation" and "Protecting the Nation from Advanced Cryptographic Attacks." These orders focus on deploying quantum computing power, quantum sensing, and quantum networks, strengthening quantum technology R&D, supply chains, and talent development to consolidate competitive advantages. They also mandate the completion of Post-Quantum Cryptography (PQC) migration by 2030–2031 to mitigate the risk of quantum computers breaking existing cryptographic systems. In recent years, the European Union launched the "Quantum Flagship Initiative," South Korea enacted the "Act on Promotion of Quantum Science and Technology and Quantum Industry," and Singapore released its "National Quantum Strategy." All nations are promoting quantum technology R&D and industrialization through top-level design. China similarly attaches great importance to quantum technology development, positioning it as a high-priority national strategy. The "15th Five-Year Plan" lists it as one of six future industries, aiming to cultivate it as a new economic growth point.

Technological Research and Engineering Construction

In terms of technological research, QKD is the most mature direction in the field of quantum communication, evolving towards "longer distances, higher rates, and smaller form factors." China has maintained international leadership in this area for a long time: it has successively launched the "Micius" and "Jinan-1" quantum satellites, completing intercontinental and satellite-to-ground quantum key distribution experiments over thousand-kilometer scales; it has repeatedly set world records for code generation distance and rate in fiber-optic channels, achieving the world's first Gbit/s-level secure code generation in 2025. Regarding device miniaturization, China has developed integrated photonic quantum chips, laying the technical foundation for low-cost, compact QKD devices. Internationally, countries such as Japan, the UK, and Switzerland have also made progress in research, including the proposal and experimental verification of new protocols. Overall, China maintains a leading position globally in quantum communication.

In terms of engineering construction, China has preliminarily built a space-ground integrated quantum communication network. In December 2016, the "Beijing-Shanghai Trunk Line" for quantum confidential communication, spanning over 2,000 kilometers, was fully connected and successfully linked with the "Micius" quantum satellite. In December 2022, the National Quantum Backbone Network was completed, with a total mileage exceeding 10,000 kilometers, successfully interconnected with the "Jinan-1" quantum satellite. This marks China's transition of quantum communication networks from experimental demonstration to large-scale application.

To date, more than 40 cities, including Beijing, Jinan, Hefei, Shanghai, Wuhan, and Xiong'an, have initiated the construction of metropolitan area quantum confidential communication networks, forming a tiered layout of "backbone network + metropolitan area network." Internationally, although the US, South Korea, and EU member states have deployed their own quantum networks, there is a clear gap compared to China in terms of construction scale, trunk line mileage, and space-ground integration capabilities. Most remain limited to metropolitan test platforms and local government private networks, without yet forming nationwide large-scale quantum confidential communication backbone networks.

Domestic and International Standardization Research

The rapid advancement of technological research and network construction imposes higher requirements on the standardization system. Domestically, the China Communications Standards Association (CCSA) and the Cryptography Industry Standardization Technical Committee have issued multiple national and industry standards covering system testing, relay security, and technical specifications. Internationally, organizations such as the European Telecommunications Standards Institute (ETSI) and the International Telecommunication Union (ITU) are actively promoting quantum communication standardization. The ITU has launched dozens of international standard projects, while the International Organization for Standardization (ISO) and the International Electrotechnical Commission (IEC) have published international standards for QKD technical requirements and testing methods.

From a global perspective, China has formed a comprehensive layout in quantum communication regarding technological R&D, network construction, and standard setting, maintaining an internationally leading position. Building on this, the key task now is how to convert technological advantages into scalable industrial capabilities to safeguard the security of national critical information infrastructure. Upholding the responsibility of a central enterprise, China Telecom actively undertakes national strategic needs and systematically promotes the industrialization of quantum communication. It has completed a full-chain layout of "technological breakthrough—engineering construction—application promotion," contributing the "Telecom Solution" to China's quantum communication industrialization.

China Telecom's Practices and Explorations in Quantum Communication

China Telecom positions quantum technology as a strategic priority. Since 2019, it has maintained strategic focus and continuously increased investment, establishing China Telecom Quantum Information Technology Group Co., Ltd., forming the China Telecom Quantum Research Institute, and strategically holding shares in QuantumCTek Co., Ltd. In 2022, it assumed responsibility for a major national science and technology special project. In November 2024, it released the "Action Plan for Quantum Technology and Industrial Development 2030," systematically implementing the national deployment in the quantum field. Centered on this layout, China Telecom advances synergistically across five dimensions: technological innovation, infrastructure improvement, industrial development, talent building, and open cooperation.

Technological Innovation "Source" Project

1. Distributed Cryptographic System Integrating QKD and PQC

China Telecom pioneered a distributed cryptographic system integrating QKD and PQC. Selected as one of the ten landmark achievements from central enterprises' original technology source bases, its overall technology reaches an internationally advanced level. It successfully connected the world's first cross-domain quantum secure voice call between Beijing and Hefei, spanning over 1,000 kilometers. This cryptographic system adopts a three-layer decoupled architecture of "Quantum Network Layer—Cryptographic Service Layer—Application Access Layer," separating the generation, distribution, management, and application access of quantum keys. This allows applications in sectors like government affairs, finance, and energy to rapidly acquire anti-quantum attack security capabilities without building dedicated networks. China Telecom's distributed cryptographic system is shown in Figure 1.

2. Wavelength Division Multiplexing Co-Fiber Technology and Integrated Transmission-Security Equipment

Addressing issues such as high costs due to exclusive fiber core deployment for quantum communication networks, significant interference in co-fiber transmission, and difficulties in compatibility with existing high-capacity optical communication networks, China Telecom led efforts to tackle the technology of co-fiber fusion transmission for quantum signals and classical optical signals. In 2025, it completed a live network experiment for classical-quantum co-fiber transmission, setting international records for the longest transmission distance of 81 km, highest classical optical channel power of 21.75 dBm, and largest classical data transmission capacity of 15.7 Tbit/s. In 2026, it achieved stable co-transmission of 40 Tbit/s ultra-high-capacity classical optical communication and commercial QKD equipment over 101.6 km of hollow-core fiber, further refreshing the record. These achievements enable stable co-transmission of QKD signals and classical optical signals without modifying the fiber network or degrading classical communication performance.

Additionally, China Telecom developed the world's first commercial-grade integrated transmission-security equipment (shown in Figure 2) and created the nation's first cross-metropolitan encrypted Optical Transport Network (OTN) leased line based on this equipment. It is accelerating the application of integrated transmission-security encrypted OTN leased lines in sectors such as government affairs, finance, industry, and energy, facilitating the industrial landing of quantum security technologies and building a solid "Quantum Security Base" for high-quality development.

3. Heterogeneous Interconnection Technology for Quantum Communication

Currently, local quantum networks suffer from mutual disconnection due to factors such as equipment formats, protocol standards, and vendor interfaces, creating "quantum silos." This leads to network fragmentation and low resource utilization, constraining industrial promotion. To address this, China Telecom proposed a solution framework of "standard-first, unified architecture, platform scheduling." By unifying key interface specifications, establishing key pools and relay forwarding mechanisms, and constructing a global unified management and control system, it promotes interoperability among quantum networks from different vendors and regions, providing autonomous and controllable quantum key infrastructure for key sectors like government affairs, finance, and energy.

4. Engineering Exploration of New QKD Protocols

New QKD protocols hold immense technical potential for performance enhancement. Continuous Variable QKD protocols, with strong compatibility with existing optical communication networks and ease of integration, are expected to further reduce deployment costs. Twin-Field QKD protocols can effectively extend transmission distance, supporting the expansion of QKD network coverage. China Telecom will promote the coordinated development of multiple QKD protocols by combining differentiated network conditions and business scenario needs, continuing engineering technical breakthroughs to build a complementary, smoothly evolvable QKD technology system.

Infrastructure "Foundation" Project

The implementation of technological results requires network support. China Telecom has built over 40 quantum metropolitan area networks, achieving full coverage of all municipalities directly under the central government and provincial capitals, and continues to connect to the national trunk network. On this basis, China Telecom will further participate in the construction of a quantum constellation, building a space-ground integrated quantum security infrastructure to form a global quantum security service system.

Industrial Development "Pilot" Project

China Telecom is committed to productizing and servicing quantum capabilities, systematically building a "Quantum+" product portfolio. It has independently developed over 30 products, serving more than 5,000 industry users and over 7.2 million individual users.

In "Quantum+Communication," Quantum Secure Messaging is the world's first carrier-grade quantum secure instant messaging and office application. It deeply integrates quantum security technology with instant messaging, audio/video calls, identity authentication, and office applications, ensuring the secure storage and transmission of work information and trade secrets. Quantum Secure Calls adopt "triple protection" using domestically customized mobile phones, Quantum Secure SIM (Subscriber Identity Module) cards, and SM algorithms, providing integrated "Management-Terminal-Chip" security protection. Quantum Encrypted Intercom achieves high-level encryption protection throughout the process of intercom audio/video and dispatch commands, currently applied in various major event assurance scenarios.

In "Quantum+Cloud-Network," Quantum Cloud Seals integrate AI and quantum security technology to achieve full-process encryption protection for seal usage. OTN Quantum Encrypted Leased Lines provide ultra-high security leased line services for users in sectors such as government affairs and finance.

Elite Talent "Wisdom Gathering" Project

The development of quantum technology ultimately relies on talent support. China Telecom has gathered scientists, experts, and engineers to form a "Talent Formation," building a quantum industrialization talent corps of over 1,000 people. Under the guidance of the State-owned Assets Supervision and Administration Commission (SASAC) of the State Council, it leads the construction of a Central Enterprise Quantum Talent Sci-Tech Innovation Space, collaborating with other central enterprises to concentrate efforts on tackling upstream "choke-point" technologies, delivering a batch of landmark scientific and technological achievements, and launching "Quantum+" special actions.

Open Cooperation "Synergy" Project

Facing the industrial ecosystem, China Telecom leads the construction of the Central Enterprise Quantum Technology Innovation Consortium, comprising up to 80 member units. For five consecutive years, it has initiated and jointly hosted the Quantum Technology and Industry Conference, consolidating industrial consensus and driving China's quantum communication industry from customized, asset-heavy project construction to a new stage of standardization, cloudification, and universal accessibility.

In terms of application model innovation, addressing industry pain points such as "heavy network construction, high costs, and complex access" for quantum security applications, China Telecom has built the Quantum Security Capability Open Platform (Q-Link). With "Key-as-a-Service" (KaaS) as the core concept, it decouples quantum security capabilities from dedicated equipment and project-based systems, uniformly encapsulating them as standardized, elastically scalable cloudified capabilities accessible via a unified developer portal and standard Application Program Interface (API). Based on the quantum security infrastructure built by China Telecom, Q-Link constructs a quantum security base compliant with national cryptographic standards, enabling sectors like finance, government affairs, and energy to invoke quantum security capabilities on demand, solving issues of redundant construction, complex integration, and compliance difficulties. Simultaneously, it transforms the heavy-asset investment model into subscription-based cloud service provision, reducing enterprise deployment and operation costs, and propelling quantum security from "isolated pilots" to a new stage of scaled, serviced, and ecological development.

Looking at the layout of the five major projects, China Telecom has basically completed the full-chain construction from technology, network, and products to talent and ecosystem. However, from an industry-wide perspective, several common challenges still face quantum communication as it strives for scaled development.

Problems and Challenges Faced

Standard and Security Evaluation Systems Are Not Yet Sound

As quantum communication progresses from experimental demonstration to scaled networking and industry application, issues such as device interoperability, network acceptance, and security capability evaluation have gradually become problems that must be resolved for industrial development. Although China has preliminarily formed a quantum communication standard framework, compared to traditional cryptography, the systematicness and coordination of existing standards remain insufficient. There is no complete connection between protocols, devices, networks, and applications, making it difficult to meet actual needs such as multi-vendor equipment selection, interoperability, and network construction acceptance. Meanwhile, quantum security evaluation involves multiple professional fields, requiring high levels of device interface openness and tester qualifications. Existing testing tools lack sufficient automation capabilities, struggling to meet the demands of bulk product application and scaled network deployment.

Beyond engineering testing capabilities, the rapid development of new QKD protocols also poses new requirements for security assessment. Currently, the security evaluation methods and engineering verification systems for some new protocols are not yet perfect. Specifically, the continuous variable QKD technology route needs further improvement in security analysis, parameter evaluation, and test verification for actual system implementations.

In scaled networking scenarios, the network also involves links such as key storage, cross-domain scheduling, cryptographic services, and operations and maintenance. Passing single-device inspection does not imply overall network system security. A network-level evaluation system covering the entire key lifecycle needs to be established for scaled networking. In the future, efforts should be promoted to shift standards from scattered construction to systematic coordination, and security evaluations from single devices to networks and businesses.

Insufficient Expansion of Application Scenarios

Currently, although China's quantum communication has landed a batch of demonstration projects in key sectors such as government affairs, finance, and energy, the industry as a whole remains in the application demonstration stage. A series of problems urgently need resolution: First, insufficient industry integration, as existing applications mostly stay at the link encryption level and are not deeply bound with core industry businesses; Second, insufficient economics, as equipment procurement, network construction, and O&M costs are high, making it difficult for many industry users to bear independently; Third, prominent infrastructure barriers, as constructed networks are mostly regionalized, vendor-closed-loop architectures, with obvious bottlenecks in cross-domain heterogeneous interconnection.

Unclear Synergistic Relationship with PQC

As two technical routes resisting quantum computing threats, the synergistic relationship between QKD and PQC lacks clear consensus. QKD relies on physical laws to guarantee unconditional security of key distribution but is limited by key rate, transmission distance, and private network costs. PQC offers flexible deployment and good compatibility with existing facilities but faces long-term risks from the evolution of quantum algorithms. Both have pros and cons; how they coordinate to complement each other and serve different application needs and industry scenarios still requires continuous exploration. Simultaneously, in standard setting and interface design, efforts are needed to promote the connection of the two technologies and gradually clarify the path for coordinated development.

Future Development Trends

Addressing the above challenges, the industrialization of quantum confidential communication requires concerted efforts from three aspects: technological breakthroughs, network construction, and application expansion.

Advancing Technological Breakthroughs to Expand the Practical Boundaries of Quantum Communication

At the technological breakthrough level, quantum communication will continue to evolve towards longer transmission distances, higher code generation rates, smaller form factors, and lower costs. First, continuously optimize core components such as photonic quantum chips and high-performance single-photon detectors, enhancing system performance while reducing hardware costs. Second, promote the iterative evolution of frontier technologies such as quantum memory and quantum repeaters, gradually achieving engineering implementation to lay a solid technical foundation for future quantum internet construction. Third, rely on the quantum constellation to achieve global coverage of QKD services, further expanding overseas application markets.

Strengthening Network Construction to Build Space-Ground Integrated Infrastructure

Relying on ground fiber-optic networks (including metropolitan area networks and backbone networks) and the quantum constellation, build a space-ground integrated quantum communication network. For metropolitan area networks, continue to expand coverage and deepen access and bearer capabilities. For backbone networks, form a multi-level, widely covered backbone network architecture. For the quantum constellation, form global, all-weather QKD service capabilities. Through the collaborative integration of the space-ground integrated quantum communication network, build a full-domain covered, interconnected quantum communication support system, providing a solid bearer base for the scaled landing of cross-regional, cross-domain quantum security services.

Innovating Application Models to Deepen the Integration of Quantum Security with Key Sectors

Relying on the quantum security capability open platform, the quantum communication industry will gradually transform from "project-based construction" to "service-oriented operation," building a sustainable, replicable, and promotable market-driven ecosystem. Leveraging business model innovations such as KaaS, create lightweight, on-demand, subscription-based service systems. Utilizing the already built backbone and metropolitan area networks, provide quantum security services to users in industries such as finance, energy, and transportation.

In summary, as a key technology ensuring future information security, quantum communication is currently in a critical stage of accelerating evolution from pilot demonstration to engineered, systematic application. Looking ahead, relying on technological innovation and industrial synergy, quantum communication will achieve the leap from demonstration projects to market-scaled deployment, providing solid support for fortifying the national information security defense line and escorting the high-quality development of the digital economy.

 

This article was published in *Communications World*, Issue 10, 2026; Original Title: "Current Status of Quantum Communication Industry Development and China Telecom's Practical Explorations."

Authors: Zhang Jianxiao, Ge Haobo, Tan Hao, Zhang Tao, An Xuebi, Huang Yizhi (China Telecom Quantum Information Technology Group Co., Ltd.); Wang Jinhua, Xie Yuheng (Research Institute of China Telecom Co., Ltd.)

Editor/Layout: Zhu Wenfeng

Reviewer: Mei Yaxin

Supervisor: Liu Qicheng