Italy in Talk With SpaceX for $1.6 Billion Deal for Secure Telecommunication

Italy is on the brink of a groundbreaking €1.5 billion ($1.6 billion) agreement with Elon Musk’s SpaceX to enhance its secure telecommunications services. This ambitious project, potentially the largest of its kind in Europe, gained momentum following a meeting between Italian Prime Minister Giorgia Meloni and US President-elect Donald Trump in Florida. With approvals from Italy’s Intelligence Services and Defence Ministry, the deal highlights its strategic importance. Once finalized, this would become Europe’s largest satellite communication initiative.

The five-year agreement aims to provide Italy with top-tier encryption for telephone and internet services and additional military communication capabilities in the Mediterranean. The initiative includes the deployment of direct-to-cell satellite services for emergencies like natural disasters or terror attacks. Despite initial delays due to concerns about the impact on local telecom providers, Italy remains committed to leveraging advanced satellite technology for national security and emergency preparedness.

Starlink’s Rapid Expansion

This deal aligns with the global expansion of SpaceX’s Starlink satellite internet service. In 2025 alone, Starlink extended its reach to over 20 new countries which include Ghana and Argentina. Starlink providing servicing in more than 100 nations and territories with a user base exceeding four million. SpaceX’s blend of technological innovation and Musk’s political influence has outpaced traditional telecom providers and competitors such as Amazon and China-backed initiatives. Starlink offers services ranging from residential internet to applications in maritime, aviation, and defense sectors, making its secure Starshield platform particularly attractive to Italy’s military and government.

Challenges for Telecom Providers in Italy

Italy’s highly competitive telecom market is undergoing significant changes. Local carriers face shrinking profits, leading to industry consolidation and asset sales. In 2024, Telecom Italia sold its landline network to US private equity firm KKR & Co for €22 billion, a move supported by Meloni’s government to reduce national debt. While Italy holds stakes in major carriers like FiberCop and Open Fiber, integrating SpaceX services presents challenges. Starlink’s rapid rollout in Italy has faced pushback from Telecom Italia, and the government has explored costlier alternatives, such as the EU’s IRIS² Satellite Constellation.