Italy in talks over $1.5 billion SpaceX security services deal, Bloomberg News reports


FILE PHOTO: A SpaceX Falcon 9 rocket is shown as it is prepared for another launch attempt for Polaris Dawn, a private human spaceflight mission, at the Kennedy Space Center in Cape Canaveral, Florida, U.S. September 9, 2024. REUTERS/Joe Skipper/File Photo

(Reuters) -Italy is in advanced talks with Elon Musk's SpaceX over a 1.5 billion euro ($1.55 billion) 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.

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 Jan. 20.

Meloni has also forged a close relationship with billionaire tech CEO 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.

($1 = 0.9708 euros)

(Reporting by Harshita Meenaktshi and Mrinmay Dey in Bengaluru; Editing by Andrew Heavens and Jan Harvey)

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

Next In Tech News

Musk hints at possible SpaceX IPO in X post after media reports
Crypto traders seek out�extra security as kidnappings rise
Apple CEO pushes for changes in US child online safety bill, citing privacy concerns
Australia's Westpac urges bigger role for social media firms in scam prevention
Synopsys tops revenue estimates on strong demand for chip design tools
Google names Amin Vahdat as new chief of AI infrastructure buildout, Semafor reports
Adobe sees upbeat annual results on AI, design software strength
OpenAI warns new models pose 'high' cybersecurity risk
Oracle forecasts miss Wall Street targets while spending rises, shares slide 10%
Big Tech warned over AI 'delusional' outputs by US attorneys general

Others Also Read