Deep tech has the power to change the way we produce material, the way we eat, and the way we heal by fusing science, engineering and design thinking, opine researchers and scientists experimenting with this powerful technology.
Deep tech (a shortened version of deep technology) incorporates technologies like robotics, synthetic biology, nanomaterial, blockchain, quantum computing, artificial intelligence (AI) and others, and blends them with engineering and design science to address fundamental issues that have been left unresolved for decades. Imagine having a vaccine ready within a month during a global pandemic like COVID-19, or generating precise insights on climate change by leveraging the power of deep tech. These scenarios highlight the transformative potential of advanced technology in tackling the world's most pressing challenges.
We are witnessing a significant increase in venture capital investors who are shifting their focus from software to deep tech, enticed by the prospect of solving the biggest challenges facing the world while remaining profitable.
In essence, deep tech supports startups and companies that are aiming to bring about transformative and disruptive change across industries as opposed to the small or cumulative changes enabled by shallow tech—a simple technological advancement whereby a business is moved from a non-digital business model to a digital one.
A popular example of a deep-tech backed company is tech magnate Elon Musk’s Starlink which aims to provide global mobile broadband and “rebuild the internet in space” as part of its operations. With 6,350 Starlink satellites in orbit as of August 2024, the company has encountered concerns from astronomers regarding the satellites’ interference with universe observations as well as concerns from spaceflight safety experts who fear collision hazards in the Earth’s orbit.
Moreover, the amount of metal burning up in Earth's atmosphere as old satellites are deorbited, triggering unpredictable climate changes, is also raising red flags. For a company to survive amidst these practical challenges, the innovation provided by deep tech will be invaluable.
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What’s in it for Telcos Adopting Deep Tech?
In a 2023 report, BCG stated that deep tech claims a stable 20% share of venture capital funding, up from about 10% a decade ago. In 2019 alone, there were more than 5000 deep-tech ventures backed by a USD 50 billion investment. As the global economy’s need for best practices in sustainable and energy-efficient operations grows, the biggest innovations are not only unlikely to come from a single technology but also from the convergence of multiple technologies that remove barriers or resolve long-standing compromises.
The telecom industry forms an important and pivotal catalyst for the development of the deep tech ecosystem. From providing seamless connectivity and interoperability of emerging technologies to fostering ICT talents, the industry’s role only prevails in the greater scheme of things. Almost every business sector is likely to benefit from the possibilities offered by deep tech. Analysts predict that economies with a high share of world-leading deep tech companies stand at an advantageous position in an increasingly digital-first landscape.
Vodafone has integrated AI into its network management systems, reducing downtime and enhancing the quality of service. Their AI-driven predictive maintenance tool helps anticipate and address potential network issues before they impact customers.
Nokia has partnered with Google Cloud, AWS, and Microsoft to deliver cloud-based 5G solutions, marking a significant step toward enabling more flexible, scalable, and efficient 5G networks.
Deutsche Telekom is exploring blockchain for automating roaming services. Their blockchain solution allows operators to track transactions more securely and efficiently, potentially reducing costs and fraud.
South Korea’s SK Telecom is leading in quantum security by deploying Quantum Key Distribution (QKD) technology. This project is designed to protect sensitive communications on 5G networks, ensuring ultra-secure data transmission.
Telefónica has developed its UNICA platform, a virtualized cloud-based network infrastructure. By utilizing AI, automation, and virtualization, Telefónica is transforming its network to be more flexible and cost-efficient while delivering better services to customers.
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Saving Biodiversity
In recent news, climate researchers have warned about the high concentration of powerful greenhouse gas (GHG) methane in the atmosphere, threatening efforts made by countries to meet their climate targets, such as those established in the Paris Agreement.
For example, the Northern Lights project—a collaboration between Equinor, Shell, and TotalEnergies—is a full-scale CCS project in Europe aiming to capture and store CO2 from industrial sources. This project uses deep-tech innovations to transport CO2 to storage sites under the North Sea, mitigating emissions from hard-to-abate industries.
Methane is considered the second-most abundant greenhouse gas produced by human activity after
carbon dioxide, with agriculture, energy production and organic waste in landfills listed as the other major sources. In the first 20 years, its impact on the atmosphere has been about 80 times more powerful than that of carbon dioxide even though it breaks down more quickly than CO2.
However, despite efforts to cut methane emissions, atmospheric concentrations of the gas are still rising. Deep-tech climate solutions are helping decarbonize some of the world’s dirtiest industries. Interestingly, nuclear fusion is deemed a hot topic in the deep-tech domain. ICT support for these initiatives opens up a greater scope for the telecom industry.
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Data Management
With the advent of AI and ML, data has become the new treasure trove for economies and businesses both great and small. Sustainable data management practices that incorporate green solutions for data storage, security and energy efficiency will only become more complex as the volume of data generation explodes.
Moreover, in the rush for data mining, the implications of “dirty data” can be damaging. Thus, collaboration between industry specialists and tech experts has become mandatory to ensure that clean and trustworthy data is generated to maximize investments. Deep tech-supported, robust data management strategies will eventually become the norm.
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The Rise of Industry 5.0
Countries like China and the US, among others, have already started replacing human workers with humanoid robots, highlighting the transition to next-level smart manufacturing.
In January, Goldman Sachs forecasted that the annual global market for humanoid robots would reach USD 38 billion by 2035, boasting nearly 1.4 million shipments for consumer and industrial applications. It estimated that the cost of the materials required to build them had fallen to about USD 150,000 each in 2023, excluding research and development (R&D) costs.
These developments are the beginning of new markets for deep-tech-enabled startups to explore. Telco solutions must align with this global trend sooner rather than later.
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Mobility Changes
Mobility is one area where ICT solutions have increasingly been incorporated as the advent of IoT and high-end sensing technologies come to fruition, giving way to autonomous driving.
However, in Germany’s ARENA2036 campus—one of the largest research platforms for mobility in the world—researchers and scientists are “integrating the vehicle not just as a means for transportation but also a space to use to live in.”
The trend of using cars for more than just driving—like holding video conferences, playing video games, and even turning them into mobile karaoke bars—is gradually gaining momentum. The ultimate experience would be to enter a car and be immersed in numerous digital worlds. This calls for various levels of network technologies that telcos can offer to companies during the production of automobiles in the assembly line or a separate network for navigating between vehicles on the road.
Moreover, deep tech could enable vehicles to operate without automated guides or robotic lines equipped with advanced CPUs and sensors. This represents a new realm where technologies such as 5G-Advanced and 6G will have a major role to play.
Also Read: Roadmap to Autonomous Vehicles: UN Targets 2026 Regulatory Implementation
In Conclusion
In light of today’s competitive and digitally enabled global market, high-risk venture capital funding will likely go to companies that are focusing on solving critical, large-scale problems and leveraging a combination of maturing digital technologies and emerging physical technologies—the essence of deep tech innovation. Telcos would do well to get involved early in this innovation journey and pave the efficient pathway to digital greatness.
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