T-Labs, Deutsche Telekom’s research and development unit, and T-Mobile US have teamed-up to launch a competition to use 5G technology to transform retail.

T-Challenge is a worldwide competition for start-ups, developers, researchers and designers to submit innovative research for using 5G networks and extended reality (XR) technology to transform retail.

The competition is designed to fuel innovations in how consumers shop, using immersive XR experiences in stores, at home and on the go.

Today, AR is already having a major impact on brands and how purchasing decisions are made as consumers seek a more personalised and engaged experience. According to a recent Consumer Augmented Reality report by Deloitte Digital and Snap, companies with branded AR experiences are 41 per cent more likely to be considered by consumers. Nearly three in four consumers say they’re willing to pay more for a product that promises the transparency AR can provide. And 56 per cent of consumers agree AR gives them more confidence about product quality with over half indicating they want to use AR technology to assess products, allowing for a risk free try-before-you-buy experience.

“Our Ultra Capacity 5G network is the perfect platform for extended reality experiences that can better connect us to products and information,” said Neville Ray, president of technology at T-Mobile US. “Retail is an area that’s ripe for disruption and we see a tremendous opportunity to engage consumers in new ways. Shopping inside virtual stores from the comfort of your own home and exploring products in 3D are just the start of where the industry is going, and I can’t wait to experience what comes next.”

T-Challenge includes a development category for applicants to submit new viable XR products, and a concept and design creation category for applicants to submit tangible concepts or designs of future prototype XR experiences. Up to 20 finalists will receive an all-expenses paid trip to Bonn, where they will present their ideas to leaders at Deutsche Telekom and T-Mobile US. Six winners will split €600,000 in prize money. Winners will also have the opportunity for their ideas to be featured in T-Mobile and Deutsche Telekom retail stores in Europe and the USA.

“We want to use XR and our leading 5G networks to enhance and create new customer experiences with practical and human-centric applications, and thus inspire and convince,” said Claudia Nemat, board member for technology at Deutsche Telekom. “For this reason, we encourage creative minds to apply to our T-Challenge and help shape the future with their ideas. The best will win great prizes and be tested and deployed in our shops. I’m looking forward to exciting ideas and even more exciting XR experiences.”

With its 5G networks as the foundation, T-Mobile US and Deutsche Telekom collaborate with universities and standards bodies to support 5G research and development. T-Mobile US also operates the T-Mobile Accelerator and the T-Mobile Ventures investment fund, and it is a co-founder of the 5G Open Innovation Lab. Deutsche Telekom operates the Co:Creation Lab in Germany, and supports start-ups with the Hubraum tech incubator in Berlin, Krakow and Tel Aviv.