January 6, 2025 11:47 am January 6, 2025 Italy is in advanced negotiations with SpaceX, Elon Musk’s space company, on a deal to provide secure telecommunications services to the Italian government. The latter sees it as an alternative to Starlink. Several anonymous sources, according to Bloomberg, have stated this. Talks are ongoing, and a final agreement on the five-year contract has not yet been reached. The project has already received approval from the Italian Intelligence Agencies and the Italian Ministry of Defense. High-quality encryption Italian officials are negotiating a deal worth €1.5 billion to provide Italy with a full range of high-quality encryption for the government’s telephone and Internet services. The plan also includes communications services for the Italian military in the Mediterranean, as well as introducing so-called direct-to-cell satellite services in Italy for use in emergency situations, such as terror attacks or natural disasters. The possible deal has been under consideration since mid-2023. However, some Italian officials have objected, fearing the services could disadvantage local telecom companies. Italy is one of the world’s most competitive markets for telecom companies, struggling with declining profits for years. The local industry faces a new wave of mergers and billion-dollar asset sales. Last year, Telecom Italia SpA, the country’s former telephone monopoly, sold its fixed-line network to U.S. private equity firm KKR & Co. in a deal worth €22 billion, aiming to reduce debt. The Meloni government strongly supported this sale, which was the first of its kind for a European telecom operator. Italy considered alternatives By the way, Italy is one of the countries already served by Starlink. Last year, Starlink claimed that Telecom Italia was obstructing the rollout of its high-speed Internet services. The Italian government considered alternatives to Musk’s Starlink option, including the EU satellite constellation IRIS² or building its own satellite constellation. However, both projects would involve costs in excess of €10 billion. Tags: