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Italy Explores €1.5 Billion Deal with Elon Musk's SpaceX and Starlink

2/5 – International News Story

Last month, Italy advanced talks with billionaire Elon Musk’s SpaceX and its satellite broadband venture, Starlink, over a €1.5 billion deal to transform its telecommunications infrastructure. The proposed agreement, which spans five years, has ignited debates over national sovereignty, European technological autonomy, and Italy’s strategic reliance on a U.S.-based enterprise.

Discussions between Italy’s government and SpaceX revolved around using Starlink’s space-based telecommunications system to provide secure communications for government operations, diplomats, and defense officials across the Mediterranean. Starlink, a subsidiary of SpaceX, operates an expansive network of 6,700 active satellites in low-Earth orbit, controlling nearly two-thirds of all satellites globally. It already delivers low-latency broadband to over four million customers worldwide, including around 55,000 in Italy, Europe’s third-largest economy.

Prime Minister Giorgia Meloni’s office confirmed the talks, stating they are part of “normal dialogue” with companies offering encrypted communication services.

If finalized, the deal would allow SpaceX to provide encryption services and communications infrastructure for Italy’s government, military, and emergency services. The initiative promises swift implementation, with Starlink claiming it could be operational within months—far ahead of the eight to ten years required by competitors.

Italy’s interest in Starlink stems from its need for a fast, reliable, and secure communications solution. State-backed efforts to expand fiber-optic networks in remote areas have faced delays, leaving significant gaps in high-speed internet penetration. To address this, the government plans to test Starlink’s services as early as this month to evaluate its viability as an alternative.

Starlink also offers an immediate solution to challenges posed by the EU’s ambitious IRIS² project. This multi-orbit satellite constellation aims to provide encrypted communications for EU governments and public agencies but faces cost overruns, financing difficulties, and delays, with a full rollout unlikely before 2030. In contrast, Starlink’s services could meet Italy’s digital transition goals in a fraction of the time.

The potential deal sparked significant backlash within Italy and across Europe. Critics argue it undermines national and European sovereignty by outsourcing critical telecommunications to a U.S. tech mogul closely aligned with the American far-right.

European leaders have also voiced concerns over strategic dependence on SpaceX. Alexandra Geese, a German Greens member of the European Parliament, described the arrangement as a threat to European security, calling Musk “an unpredictable proto-fascist.” Matthew Hodgson, co-founder of Matrix, a secure communications protocol, warned of the risks of over-reliance on Starlink. “If Musk’s services went down or were pulled, Italy might find itself unable to communicate at all,” Hodgson cautioned.

Italy’s consideration of Starlink comes despite its involvement in the EU’s IRIS² initiative, a €10.6 billion project designed to bolster European autonomy in secure satellite communications. Italy secured a key role in IRIS² with one of its ground stations planned for Fucino, signaling its commitment to the project. Additionally, the Italian government tasked aerospace leader Leonardo with developing a secure, space-based cloud storage network for the military. These efforts are still years away from fruition, however.

The deal also highlights Meloni’s evolving relationship with Musk, who has positioned Starlink as a dominant force in satellite broadband. Musk himself confirmed his readiness to support Italy, posting on X a couples weeks ago, “Ready to provide Italy the most secure and advanced connectivity!” Andrea Stroppa, Musk’s Italian representative, emphasized the cost-efficiency and rapid deployment of Starlink compared to European alternatives, claiming the project could save Italy more than €8 billion.

If Italy does move closer to a potential agreement with SpaceX, the decision will underscore a complex balancing act. While Starlink offers a fast and cost-effective solution to Italy’s telecommunications challenges, it raises critical questions about national and European sovereignty, strategic dependency, and long-term security. With no contract finalized yet, the Italian government must weigh the immediate benefits against the broader geopolitical and industrial implications of aligning with Musk’s global enterprise.

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