Italy is in advanced negotiations with SpaceX for a €1.5 billion ($1.6 billion US) deal to provide secure telecommunications services for the government, according to sources familiar with the matter, as reported by Bloomberg.
If finalized, this would be the largest project of its kind in Europe, utilizing SpaceX’s Starlink tech to modernize Italy’s government and military communications.
According to people familiar with the discussions, the five-year contract would include top-level encryption for government phone and internet services, direct-to-cell satellite communication for emergencies, and enhanced connectivity for the Italian military in the Mediterranean.
Sources also revealed that the plan has already been approved by Italy’s Intelligence Services and Defense Ministry, though a final agreement is still being negotiated.
Starlink operates a network of over 7,000 satellites and serves more than 4 million users globally across 100 countries, including Italy. The service offers high-speed, low-latency internet for applications ranging from residential use to defense.
Italy is considering Starlink as the primary provider for this strategic project due to its global coverage and cutting-edge encryption capabilities.
The negotiations, which had stalled earlier, reportedly gained momentum after Italian Prime Minister Giorgia Meloni met with Donald Trump in Florida. The meeting may have helped push discussions forward, sources told Bloomberg.
Italy’s local telecom industry has voiced concerns about the deal. Some officials worry it could undermine domestic carriers like Telecom Italia, which has struggled with profitability and recently sold its landline network to reduce debt.
Critics within the government have also considered alternatives, such as building Italy’s own satellite network or relying on the EU’s IRIS² satellite system. However, these options could cost over €10 billion, according to sources cited by Bloomberg.
SpaceX has a huge lead with Starlink and is able to launch its own satellites. This could be a big boon for SpaceX to make further progress into Europe.
