Japanese industrial conglomerate Toshiba has announced the start of a commercial trial of a next-generation secure communications network based on quantum mechanics. The trial service for the technology will be provided in collaboration with British telecom firm BT Group.

The network connects several locations in London and transfers data using cryptography technology called quantum key distribution.

Communications using this technology are said to be impossible to be decrypted. The system is expected to be used widely in the financial industry and security fields.

Toshiba says London is an ideal place to operate a business based on this technology because of the high concentration of financial institutions that handle highly confidential data.

Toshiba Digital Solutions President and CEO Okada Shunsuke said on Tuesday he expects the trial to help advance the firm's cutting-edge technology. He added "The key to success is to create user-friendly services. We will work with our global customers to provide such services that are suited to the situation in each country."

Toshiba says competition to develop the technology is intensifying among countries around the globe including China.