SpaceX is about to sign a multibillion-dollar deal with the Italian government for telecom and security services
- Talks with SpaceX were progressing as the Italian Prime Minister recently met with President Trump
- A five-year contract worth $1.6 billion is in the pipeline for SpaceX
- However, there is criticism of political elements of the proposal
The Italian government is reportedly in negotiations to deploy secure telecommunications from SpaceX in what could be the largest project of its kind.
A report from Bloomberg claims discussions are said to be ongoing; and if an agreement is reached, SpaceX could win a five-year contract to provide the Italian government with telecommunications services.
Unnamed sources familiar with the matter said the country’s intelligence services and defense ministry have already given their approval to the deal.
SpaceX could supply the Italian government
The deal, expected to be worth €1.5 billion ($1.6 billion), would see SpaceX encrypt phone and internet services for the government.
The talks had previously been put on hold until the country’s Prime Minister Giorgia Meloni recently visited US President-elect Donald Trump in Florida.
Talks have been ongoing since mid-2023, but some have raised concerns about how a deal with Musk’s SpaceX could harm Italian competition.
Under the deal, the Italian military operating in the Mediterranean would also benefit from the encrypted services. Direct-to-cell satellite services are also available, which could provide an important backup when terrorist attacks and natural disasters render mobile connections unusable.
However, the relationship between Meloni, Trump and Musk has been criticized on a global scale. The SpaceX leader’s substantial political contributions and alliances could give him extensive access to the White House and world leaders, which would hurt both politics and market competition.
Should such a deal go through, it would not be the first time that Italy and the US have worked together. 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.