Italy Plans $1.6 Billion SpaceX Telecom Security Deal

An anonymous reader quotes a report from Bloomberg: Italy is in advanced talks with Elon Musk's SpaceX for a deal to provide secure telecommunications for the nation's government -- the largest such project in Europe, people with knowledge of the matter said Sunday. Discussions are ongoing, and a final agreement on the five-year contract hasn't been reached, said the people, who asked not to be identified citing confidential discussions. The project has already been approved by Italy's Intelligence Services as well as Italy's Defense Ministry, they said. Italy on Monday confirmed discussions are ongoing, saying no deal had yet been reached. 'The talks with SpaceX are part of normal government business,' the government said.

The negotiations, which had stalled until recently, appeared to move forward after Italian Prime Minister Giorgia Meloni visited President-elect Donald Trump in Florida on Saturday. The Italian government said the two didn't discuss the issue during their meeting. Italian officials have been negotiating on a $1.6 billion deal aimed at supplying Italy with a full range of top-level encryption for telephone and Internet services used by the government, the people said. The plan also includes communications services for the Italian military in the Mediterranean area as well as the rollout of so-called direct-to-cell satellite services in Italy for use in emergencies like terror attacks or natural disasters, they said. The possible deal has been under review since mid-2023. It's been opposed by some Italian officials concerned about how the services may detract from local carriers.

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