Italy is negotiating a €1.5 billion agreement with Elon Musk’s SpaceX for secure telecoms, Reuters reported on Sunday.
Although discussions continue and a final deal has not been reached, Italy’s Intelligence Services and Defence Ministry have approved the project. SpaceX and Italy’s Defence Ministry did not respond to Reuters’ requests for comment outside regular business hours.
The proposed five-year contract includes encryption for government telephone and internet services. It also covers military communications in the Mediterranean and satellite-based emergency services for terrorist attacks or natural disasters.
This development follows Prime Minister Giorgia Meloni’s visit to Donald Trump’s Mar-a-Lago residence. Meloni has also established ties with Elon Musk, a known Trump ally.
Musk expansion in Italy continues
Italy plans to test Musk’s Starlink satellite system in January. The goal is to assess its potential for improving high-speed internet access.
SpaceX’s Starlink serves over four million users in more than 100 countries. Its expansion has disrupted legacy telecom operators and outpaced competitors like Amazon and China. Starlink offers applications for residential, maritime, and airline internet, as well as defence-focused services under the Starshield brand.
Italy is already covered by Starlink’s network of over 7,000 satellites. However, Starlink has previously accused Telecom Italia of obstructing its high-speed internet rollout.
Italy’s telecoms sector is highly competitive but faces declining profits and consolidation. Last year, Telecom Italia sold its landline network to KKR for €22 billion to reduce debt, with strong government backing. The state retains stakes in FiberCop and Open Fiber, two key telecommunications players.
The government has also considered alternatives to Starlink, including the EU’s IRIS² satellite constellation and developing its own network. Both options would exceed €10 billion in cost, according to unnamed sources.
Telecommunications remains a strategic priority for Italy, ensuring continued investment and exploration of emerging technologies.
