Italy is in advanced negotiations with Elon Musk’s SpaceX to secure a significant telecommunications deal worth €1.5 billion ($1.55 billion), according to reports by Bloomberg News. This potential agreement, which would span five years, would see SpaceX provide Italy with secure communications infrastructure, including encrypted telephone and internet services for government operations.
Although the deal has not yet been finalized, sources familiar with the ongoing talks confirmed that the agreement has already received approval from Italy’s Intelligence Services and the Ministry of Defence. The final terms of the contract are still under discussion, but the government is reportedly moving forward with the collaboration due to its strategic importance.
The proposed contract would involve SpaceX supplying a comprehensive suite of encrypted communications services to Italy’s government. This would include secure telephone and internet encryption for all government communications, ensuring data protection and privacy for sensitive information exchanged between officials.
Additionally, the deal would extend to military communications in the Mediterranean region, where Italy’s forces are often deployed for strategic operations. SpaceX would provide satellite-based communication services to bolster military readiness and enhance coordination in times of crisis.
One of the most critical aspects of the agreement is SpaceX’s role in providing emergency communication services. The company’s satellite technology would be instrumental in facilitating communications in the event of natural disasters, terrorist attacks, or other national emergencies, ensuring that Italy’s government and emergency services can remain operational under challenging conditions.
The deal comes at a time of growing collaboration between Italy’s political leadership and prominent figures in the global tech industry. Prime Minister Giorgia Meloni, who has been actively strengthening Italy’s ties with international leaders, notably made a surprise visit to former U.S. President Donald Trump’s Mar-a-Lago residence in Florida, signaling a renewed interest in working with key figures in global politics and business.
In addition to her diplomatic engagements, Meloni has fostered a strong relationship with Elon Musk, who is seen as a key ally in Italy’s efforts to advance its technological infrastructure. Musk, a supporter of former President Trump, has increasingly become involved in Italy’s tech strategy, further aligning the country with the broader geopolitical and economic trends.
The negotiations with SpaceX also come on the heels of Italy’s ongoing exploration of satellite-based connectivity. Last month, Reuters reported that Italy is preparing to begin tests as early as January 2025 to determine if Starlink, Musk’s satellite internet service, can be a viable solution to expanding high-speed internet access across the country. This initiative is part of Italy’s broader push to modernize its telecommunications infrastructure and bridge the digital divide, particularly in remote or underserved areas.
SpaceX’s Starlink has already been deployed in various countries around the world, and its ability to provide high-speed internet via satellite is viewed as a crucial tool in connecting rural regions and enhancing broadband access during times of emergency.
The deal, however, could raise potential legal and national security concerns, particularly surrounding the involvement of a private foreign company in providing critical infrastructure to a NATO member state. Both the Italian government and SpaceX have not yet responded to requests for comment on the specifics of the contract or its potential implications for Italy’s data security.
While the arrangement appears to be in the final stages, regulatory approval will likely require careful scrutiny from Italy’s intelligence and defense agencies to ensure that national security standards are met.
If finalized, this €1.5 billion deal between SpaceX and Italy would mark a significant step forward in the country’s efforts to modernize its telecommunications infrastructure while strengthening its national security framework. The collaboration with SpaceX would not only secure Italy’s communications systems but also position the country as a leader in embracing satellite-based technologies for both civilian and military use.
As the negotiations continue, all eyes will be on how Italy balances technological advancements with security concerns, and whether the deal will set a precedent for similar agreements in the future.
Read more: