- Talks with SpaceX moved forward as Italy’s prime minister recently met with President Trump.
- SpaceX signs five-year contract worth $1.6 billion
- However, the political elements of the proposal have been criticized.
The Italian government is reportedly in negotiations to commission secure telecommunications from SpaceX in what could be the largest project of its kind.
a report of Bloomberg claims discussions are said to be ongoing; and if agreed, SpaceX could win a five-year contract to provide telecommunications services to the Italian government.
Anonymous sources familiar with the matter stated that the country’s Intelligence Services and Ministry of Defense have already expressed their approval of the agreement.
SpaceX could supply the Italian government
The deal, believed to be worth 1.5 billion euros ($1.6 billion), would allow SpaceX to provide encryption of telephone and internet services for the government.
Discussions had been on hold until the country’s Prime Minister, Giorgia Meloni, recently visited the next US president, Donald Trump, in Florida.
Talks have been ongoing since mid-2023, however, some have expressed concerns about how a deal with Musk’s SpaceX could be detrimental to Italian competition.
Under the agreement, the Italian military operating in the Mediterranean would also benefit from encrypted services. Also on the cards are direct-to-cell satellite services, which would provide important backup when terrorist attacks and natural disasters render cellular connections unusable.
However, the relationship between Meloni, Trump and Musk has been criticized on a global scale. The SpaceX leader’s significant political contributions and alliances could give him broad access to the White House and world leaders, harming both politics and market competition.
Should such an agreement take place, it would not be the first time that Italy and the United States have worked together, since in 2024, Telecom Italia SpA sold its fixed network to KKR & Co, an American private equity company. .
The Italian government has explored other options, including building its own satellite constellation and using IRIS, a secure satellite constellation developed by the European Union to support European sovereignty; however, SpaceX’s costs are believed to be favorable.
