Ahmed Kamel – Egypt Daily News
Egypt has reportedly made significant progress in negotiations with France’s Thales Group toward the joint development of a national satellite communications and command-and-control (SatCom-C2) network, with talks intensifying during November and December 2025. The prospective program reflects Cairo’s broader push to modernize its military communications architecture, enhance strategic autonomy, and integrate space-based assets into national defense planning.
According to sources familiar with the discussions, the proposed SatCom-C2 program is designed to provide Egypt with a secure, resilient, and sovereign communications backbone capable of supporting military, security, and potentially select civilian command functions. The system would integrate satellite communications with advanced command-and-control capabilities, enabling real-time data sharing across Egypt’s armed forces and key security institutions.
Several core elements of the framework appear to have been largely agreed upon. These include Thales’ role as the primary technology provider and systems integrator, drawing on its extensive experience in military satellite payloads, ground segments, encryption technologies, and C2 software architectures. Egyptian entities, likely including national defense industries and state-owned telecommunications bodies, are expected to participate in system integration, local manufacturing, and long-term maintenance, aligning with Cairo’s policy of increasing domestic industrial participation in major defense programs.
One of the most sensitive areas where progress has reportedly been made concerns data sovereignty and cybersecurity. Egyptian negotiators have placed strong emphasis on ensuring full national control over encryption, network access, and operational authority. Preliminary understandings reportedly grant Egypt exclusive control over mission data, encryption keys, and operational tasking, addressing longstanding concerns about reliance on foreign-managed systems for strategic communications.
The talks have also addressed interoperability. The SatCom-C2 network is expected to be compatible with Egypt’s existing satellite assets and terrestrial command systems, as well as with platforms acquired from multiple suppliers, including the United States, Europe, and other partners. This reflects the Egyptian military’s diverse inventory and its need for a unifying digital command layer rather than a platform-specific solution.
Despite this progress, several issues remain unresolved and are expected to shape the final agreement. Chief among them is the program’s financial structure. While broad cost ranges have reportedly been discussed, questions remain over final pricing, payment schedules, and the balance between upfront procurement and long-term service contracts. Egypt is said to be seeking flexible financing terms, potentially involving phased payments or export credit guarantees, while Thales aims to secure predictable long-term revenue streams tied to system support and upgrades.
Technology transfer is another area still under negotiation. Although Egypt is seeking deep access to software, system architecture, and lifecycle support capabilities, Thales is likely to retain restrictions on the most sensitive proprietary technologies. The scope and depth of local assembly, software customization, and independent system modification remain points of discussion, reflecting the tension between Egypt’s desire for strategic autonomy and European export control frameworks.
Operational scope also remains under review. While the core focus is military command and control, some Egyptian planners reportedly envision a dual-use architecture that could support disaster response, border security coordination, and national crisis management. Integrating civilian agencies into a system primarily designed for military use raises legal, technical, and governance questions that have yet to be fully resolved.
Strategically, the SatCom-C2 initiative fits into a wider Egyptian effort to expand its space-based capabilities following earlier satellite launches and partnerships with European and Asian providers. It also underscores Cairo’s interest in diversifying defense partnerships while maintaining strong ties with France, which has become one of Egypt’s most important defense suppliers over the past decade.
For Thales, the project represents an opportunity to anchor a long-term presence in one of the Middle East and North Africa’s largest defense markets, at a time when secure communications and space-enabled command systems are becoming central to modern military doctrine.
If finalized, the Egypt–Thales SatCom-C2 program would mark a significant step in Egypt’s efforts to build a more integrated, secure, and sovereign command architecture. However, the remaining negotiations over cost, technology transfer, and system governance suggest that while the strategic intent is clear, the final shape of the program has yet to be fully defined.
