Indra launches a bid for 768 million euros for tactical radios with an alternative to Israeli technology.

Indra has signed an agreement with the Finnish company Bittium to develop software-defined radio (SDR) solutions, a key element for the secure exchange of information during military operations, which Spain lacks and has had to resort to Israeli technology in the past. To replace it, it will rely on an investment of €768 million, which will allow it to modernize its systems and eliminate its dependence on third countries.

With this alliance—signed at the Ministry of Defense and attended by Amparo Valcarce—Indra is unofficially submitting its bid to secure €768 million for the pre-financing of phases 1 and 2 of the Tactical Radio Communications Systems (SCRT).

These systems are included in the draft royal decree from the Ministry of Industry, which establishes the rules for granting loans for industrial development under the special modernization programs of the ministry headed by Margarita Robles.

"The national industry currently lacks sufficient capacity to manufacture and supply the required systems."

"National industry currently lacks sufficient capacity to manufacture and supply the required systems, so the SCRT program was determined to provide the necessary level of strategic industrial training at the national level to cover its fundamental principles, complemented by the acquisition of commercially available systems to ensure interoperability and facilitate coalition building," states the draft royal decree, which is open for public consultation until July 23.

It's worth remembering that the Ministry of Defense has awarded several of the latest major public contracts for the supply of software-defined radios to a joint venture (UTE) between Telefónica and Aicox. The problem is that the Israeli firm Elbit Systems also enters into the equation.

The three companies have a technology transfer agreement with the Israeli firm for the manufacture and maintenance of this equipment in Spain, although Aicox and Telefónica are responsible for the encryption and security specifications, established by national authorities such as the National Cryptologic Center.

In this context, the Spanish government's veto of Israeli weapons and defense technologies poses an obstacle to repeating this formula in the tactical radio communications systems modernization program, so Indra's move with the Finnish company Bittium gives the company chaired by Ángel Escribano a certain advantage.

This advantage is due to the fact that Telefónica and Aicox, if they wish to repeat the formula and opt for SCRT modernization programs, will have to find an alternative to the Israeli technology they incorporate in their equipment.

Regarding this, industry sources have told Europa Press that the veto on Israeli technology is a blow to Telefónica and Aicox, as it delays their projects, something that Spanish soldiers will "suffer," they add.

In fact, Indra intends to compete for these future contracts and, at least for now, rules out a possible alliance with Telefónica to participate in some type of joint venture, according to sources familiar with the situation told Europa Press.

It's worth remembering that both Indra and Telefónica are owned by the government through the State Industrial Holdings Company (SEPI), with 28% in the case of the defense company and 10% in the telecommunications group.