Italy is in advanced discussions with Elon Musk’s SpaceX to secure a $1.6 billion telecommunications services deal, making it the largest project of its kind in Europe. The five-year contract aims to provide Italy’s government with top-level encrypted communications, covering both phone and internet services. The deal, which has received approval from Italy’s Intelligence Services and Defense Ministry, would also extend to military communication services in the Mediterranean region and satellite services for emergencies like terror attacks and natural disasters.
Though the final agreement is yet to be reached, the project has gained momentum following Italian Prime Minister Giorgia Meloni’s recent meeting with U.S. President-elect Donald Trump in Florida. The discussions, which had stalled previously, were revived during this visit, according to sources familiar with the matter.
The negotiations are part of Italy’s broader effort to bolster its strategic telecommunications infrastructure. Italy’s telecommunications sector has been struggling in recent years, with major companies like Telecom Italia SpA selling off assets to reduce debt. The deal with SpaceX is seen as a solution to protect and secure Italy’s communication networks, providing the government with a reliable alternative to traditional telecom carriers, which have faced declining profits.
Starlink, SpaceX’s satellite internet service, has expanded rapidly across the globe, serving over 4 million people in more than 100 countries. The Italian government, which considers telecommunications a strategic asset, was also reviewing other alternatives, including the EU’s Satellite Constellation Company IRIS² and the potential of building its own satellite network. However, those options were deemed more expensive, with projected costs exceeding €10 billion.
As negotiations continue, SpaceX’s role in global telecommunications grows, fueled by a combination of technological innovation, business strategy, and Musk’s political influence. The potential deal with Italy could further cement SpaceX’s dominance in the satellite communication market, following its similar partnership with Ukraine’s largest mobile operator, Kyivstar, to protect telecom infrastructure from Russian attacks.
The Italian government, which controls stakes in key telecom players like FiberCop and Open Fiber, sees this move as essential to safeguarding its national security and maintaining its strategic assets. SpaceX and Italian government representatives have not yet commented on the deal, which is still under negotiation.
