Operating area

Secure Communications

The ability to safely and efficiently handle sensitive information is central to the stability and security of society, particularly when it comes to important social functions and critical infrastructure. Sectra has extensive experience of protecting society’s most critical communications, and is a strong brand in the area of encryption and secure mobile communications.

Where we are headed

The operating area’s long-term goal is to be a leading provider of solutions for critical IT/OT security. Sectra mainly focuses on government agencies, defense departments and society’s critical operations. Ensuring that these players can execute their tasks in a secure manner increases the potential for an open, safe and stable society.

Quick facts

Figures refers to fiscal year 2018/2019.

  • 83 employees
  • SEK 152.4 million in revenue

Product offering and customers

Approved crypto products

  • Customer-specific development assignments and crypto products for data transfer as well as speech and text messaging that are approved by independent security authorities for exchanging sensitive information.
  • Authorities, defense organizations, and EU and NATO organizations that handle classified information.

Secure mobile workplace

  • Secure smartphones and tablets with VPNs specifically designed for mobile users who handle sensitive information but who do not require approval from security authorities.
  • Healthcare, blue-light services and emergency response authorities as well as industrial companies that handle sensitive information.

Security in critical infrastructure

  • Risk and security analysis and data traffic monitoring to reduce the risk of access violations, interruptions or disruptions to critical networks and operating systems.
  • Operations within critical social functions, for example energy and drinking water and the process industry.

Sales channels and geographic presence

Mainly direct sales, but also distribution partners in some countries. We have offices in the Netherlands and Sweden, which are our largest markets, as well as in Finland. Due to export restrictions in the crypto industry, sales of security- approved communication systems are directed exclusively at customers in the European market. These restrictions do not apply to our offering for critical infrastructure.

Major competitors

Within secure mobile communications and crypto development, companies such as Advenica, Cryptify, Rohde & Schwarz, Secunet, Selex Communications, Thales and Tutus. Within IT/OT security for critical infrastructure, mainly companies offering general data security services, such as Saab Combitech and other major consulting companies.

Where we are now

Sectra has more than 30 years of experience in developing secure voice and data communi- cation systems. Our solutions are used by customers in most European countries, and by the EU and NATO. We have also identified two new growth areas: cyber- security for critical infrastructure and secure mobile communications for users who handle sensitive information but who are not required to use approved products. We have received a positive response and initiated business in both of these areas, but are still in the investment and establishment phase.

Approved crypto products remain important for growth

Sectra offers communication solutions that protect information essential to the security of a country. This product segment is growing and remains an important and stable linchpin in the business area’s operations. The products are subject to requirements from independent security authorities to obtain the approvals required for classified information in each country and organization. Among other regions, our products are approved in the EU, NATO, the Netherlands and Sweden. Solutions in this segment are often developed based on customer- specific development requests.

In some cases, as in the case of Sectra Tiger, these solutions can later be sold in a broader market. Another example is the development of crypto solutions for the Tetra network used by the Swedish bluelight emergency services.

Expanding secure mobile communications

Sectra is focusing on expanding its secure mobile communications operations into new customer segments for government authorities and private enterprises. Part of this work involves a partnership with the Korean company Samsung, through which we offer a unique solution for smartphones and tablets. The solution is based on Sectra’s encryption technology and VPN for mobile applications with strict security requirements, integrated into the Samsung Knox security platform. This solution is attracting growing interest, and contracts were signed with healthcare regions and energy companies during the year.

Critical infrastructure

Leveraging Sectra’s strong brand in cyber- security and crypto, we began focusing on an offering for customers within critical infrastructure during the 2015/2016 fiscal year. The ongoing establishment phase has been successful in Sweden, where we have conducted several risk and security analyses for energy companies, and we have now taken our first steps into Finland and Norway. In the last year, new customers have also chosen to use our monitoring services. Sweden’s new Protective Security Act, which entered into force in 2019, has curtailed customer investment decisions, but is expected to promote growth in the market over the long term.

The way forward

Activities being prioritized by the operating area in order to reach its long-term goals:

  • Sales of security-approved communication solutions to existing and new customers in Europe, particularly within the Baltics, the Netherlands and the Nordic regions as well as EU and NATO organizations.
  • Sale of customer-specific assignments. We focus on assignments that either provide important developments in expertise or are deemed to have a significant chance to result in product sales.
  • Maintain high level of customer satisfaction by providing good service and working closely with customers during the development of new offerings.
  • Expand the offering for mobile communications to include customer segments that do not require security-approved communication solutions. This initiative is based on closer collaboration, for example with Samsung, and on further development of the product offering.
  • Growth through additional customers in the area of critical infrastructure. Primarily focusing on the energy sector and particularly vulnerable areas of the process industry in the Nordic region and other areas of Northern Europe.
  • Increased cooperation with authorities and other companies as well as complementary acquisitions to meet our customers’ security-related needs.