The winners of the Deutsche Telekom T-Challenge have provided a glimpse into the future of shopping and service with extended reality (XR).

Trends such as Web 3.0, virtual reality and avatars will change shopping and service. This year’s T-Challenge, an international competition organised by T-Labs and T-Mobile US, wanted to find out exactly what this might look like. 

Selected from hundreds of applicants from all over the world, 19 finalists from eleven countries had the chance to convince the jury and receive a share of the prize money totalling over €600,000.

The winner of the development category was Graffiti from Marseille, France. It uses AR to bring the product experience familiar from the online world, with additional information and recommendations, to the local store.

In second place was the SightCall team from Frankfurt. It turns the smartphone into a self-service tool by smartly extending a web channel, for example, with a video call with an advisor.

Third place was DeepBrain AI from Seoul in South Korea with technology for programming lifelike avatars. Based on video footage, it created digital twins that convince with deceptively human-like gestures, facial expressions and speech in customer service, for example.

In the concept and design creation category, Golem Digital from Graz, Austria, was the winner. Its idea of the ByeByeQ solves the problem of waiting times in the store by networking waiting customers with free advisors in other stores using smart glasses or an XR booth, a kind of telephone booth with AR technology.

Second place went to the Code University team from Berlin. They focused on enhancing and enlivening digital stores through art.

In third place was Yona from Cologne with a practical solution to the problem that there is usually one tech expert in a family who sets up all the devices and solves problems when something doesn’t work. In a digital twin of the home with all its devices, AR advisors help with tips and tricks.

“We started our second T-Challenge with great expectations,” said Claudia Nemat, board member at Deutsche Telekom. “The participants’ ideas far exceeded them. For example, we received solutions such as lifelike avatars paired with applications that are perfectly tailored to the needs of our customers. This enables us to further improve our service. We want to inspire people and act in line with their needs. I have seen a lot today that precisely meets this objective.”

For two days, the finalists presented how sales and service are developing in the virtual world at Deutsche Telekom’s headquarters in Bonn. Jury members, telecoms experts, partners and visitors were able to create their own avatar in a 3D scanner or test whether they could tell a virtual person from a real one. They could stroll through a virtual 100-story mall or see how retailers can improve their service at peak times. Or see for themselves how a virtual flagship store combines the personal experience of brick-and-mortar retail with the convenience of online shopping.

“5G is poised to unlock the true potential of extended reality, transforming the way we interact with the world around us, including the way we shop,” said Neville Ray, president of technology at T-Mobile US “T-Challenge gives us a glimpse into the future with XR, and I can’t wait to see these innovators take their ideas to the next level.”

In 2021, T-Labs, Deutsche Telekom’s research and development unit, launched the T-Challenge. The second edition was held jointly with T-Mobile US.

Selected winning technology will be exhibited in some Deutsche Telekom stores in Europe and the USA.