Italy is in advanced negotiations with SpaceX to secure a deal that would provide the country with enhanced secure telecommunications services for its government and military, reports Bloomberg.
Sources familiar with the matter told the publication that while discussions are ongoing, the five-year contract, valued at approximately $1.6bn (€1.5bn), has not yet been finalised.
The proposed agreement has received approval from Italy’s Intelligence Services and Defense Ministry.
The recent progress in talks coincides with Italian Prime Minister Giorgia Meloni’s visit to US President Donald Trump in Florida.
The deal under discussion would equip Italy with advanced encryption for telephone and internet services used by the government and includes communications services for the Italian military in the Mediterranean.
The plan also encompasses direct-to-cell satellite services for emergencies such as terror attacks or natural disasters.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataUnder review since mid-2023, the proposed deal has faced opposition from some Italian officials over concerns that the service could undermine local telecommunications providers.
SpaceX, led by Elon Musk, has expanded its Starlink satellite internet service to over 20 countries in 2024, serving more than four million people across over 100 countries and territories.
Already operational in Italy, Starlink has faced opposition from Telecom Italia regarding the deployment of high-speed internet services.
Meanwhile, the Italian government has been considering alternatives to Starlink, such as the EU’s Satellite Constellation Company IRIS² or developing its own satellite constellation, though these options could exceed €10bn in costs.
In a separate development, SpaceX plans test Starship’s ability to release payloads in space during its next flight by deploying ten model Starlink satellites, reported Reuters.
SpaceX was cited by the news agency as saying in a blog post on its website: “While in space, Starship will deploy 10 Starlink simulators, similar in size and weight to next-generation Starlink satellites as the first exercise of a satellite deploy mission.”
Scheduled for later in January 2025 from SpaceX’s Boca Chica, Texas facility in the US, the flight will be the seventh test in its “test-to-failure” development approach.
SpaceX’s Starship, designed as a fully reusable two-stage launch vehicle, has undergone several test flights, with the “Super Heavy” first stage booster returning to its launch pad.
The rocket’s sixth test flight met its mission objectives despite a forced water landing for the Super Heavy booster due to a launchpad issue.
