6 Jan 2025

Italy in talks over NZ$2.75b SpaceX security services deal - report

10:44 am on 6 January 2025
US billionaire businessman and pilot Jared Isaacman flies in formation aboard a fighter jet over the SpaceX sign, close to the Starship spacecraft, before his third test flight from Starbase in Boca Chica, Texas, on March 13, 2024.

Photo: AFP / Chandan Khanna

Italy is in advanced talks with Elon Musk's SpaceX over a 1.5 billion euro (NZ$2.75b) deal for the company to provide secure telecommunications to the government, Bloomberg News reported on Sunday.

Discussions are ongoing and a final agreement on the five-year contract has not been reached, but the project has already been approved by Italy's Intelligence Services and Defence Ministry, the report said, citing unnamed sources.

SpaceX and Italy's Defence Ministry did not immediately respond to Reuters' requests for comment outside regular business hours.

The report said the deal involves SpaceX supplying Italy with a full range of encryption for telephone and internet services used by the government.

It also includes communications services for Italy's military in the Mediterranean area and the rollout of satellite services in Italy for use in emergencies such as terrorist attacks or natural disasters, it said.

This handout picture released by the Palazzo Chigi press office on January 5, 2025 shows Italy's Prime Minister Giorgia Meloni (2ndR) and US President-elect Donald Trump (2ndL) posing with Senator Marco Rubio (R) and US incoming national security advisor Mike Waltz (L) at Trump's Mar-A-Lago Club on January 4, 2025 in Palm Beach, Florida. (Photo by Filippo ATTILI / Palazzo Chigi press office / AFP) / RESTRICTED TO EDITORIAL USE - MANDATORY CREDIT "AFP PHOTO /PALAZZO CHIGI PRESS OFFICE" - NO MARKETING NO ADVERTISING CAMPAIGNS - DISTRIBUTED AS A SERVICE TO CLIENTS

Italy's Prime Minister Giorgia Meloni and US President-elect Donald Trump alongside Senator Marco Rubio, right, and US incoming national security advisor Mike Waltz, left, at Trump's Mar-A-Lago Club on January 4, 2025 in Palm Beach, Florida. Photo: AFP / Palazzo Chigi press office / Filippo Attili

The news comes after Italian Prime Minister Giorgia Meloni said on Sunday she was ready to work with Donald Trump after making a surprise visit to his Mar-a-Lago residence in Florida to meet the president-elect before his inauguration on 20 January.

Meloni has also forged a close relationship with billionaire tech chief executive Elon Musk, a close Trump ally.

Reuters reported last month that Italy plans to begin tests as early as January to see if the satellite-based connectivity offered by Musk's Starlink is a viable solution to boosting the rollout of high-speed internet in the country.

-Reuters

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