Italy is in advanced discussions with Elon Musk’s SpaceX for a $1.6 billion contract to provide secure telecommunications for the country’s government, the largest of such projects in Europe.
Following the approval of the deal from both Italy’s Intelligence Services and the Defense Ministry, the deal is expected to enhance the nation’s communication infrastructure with an emphasis on encryption and security.
The negotiations gained momentum after Italian Prime Minister Giorgia Meloni visited Florida, where she met with President-elect Donald Trump.
SpaceX’s proposal centers on providing Italy with a full suite of encrypted telephone and Internet services for government use, extending beyond standard communication needs.
A significant portion of the project includes offering communications services to the Italian military in the Mediterranean region and the development of direct-to-cell satellite capabilities for emergencies such as terror attacks or natural disasters.
The project is part of Italy’s broader strategy to secure its telecommunications infrastructure and reduce its reliance on traditional carriers, which have faced financial challenges in recent years.
However, local businesses have raised objections to the deal, saying it could disrupt local market dynamics and hurt business operations in the telecoms industry if the deal goes through.
SpaceX’s Starlink service, which has expanded globally, now serves over 4 million people across 100 countries, pushing out legacy telecom players with its robust satellite-based broadband services.
The proposed deal would further solidify SpaceX’s dominance in the satellite communications sector and provide the Italian government with cutting-edge technology.
In contrast, others see it as a vital step in modernizing the nation’s infrastructure and ensuring secure and reliable communications for the government and military.
Representatives from both the Italian government and SpaceX have not responded to requests for comment and while discussions are ongoing, no final agreement has been reached.
