"Italy Pursues 2 Trillion Won 'Secure Communication Network' Contract with SpaceX"

Negotiation Progress Immediately After Meloni-Trump Meeting

SpaceX, the space company led by Tesla CEO Elon Musk, is reportedly pursuing a contract worth around 2 trillion won to build a secure communication network for the Italian government, Bloomberg reported on the 5th (local time).

According to sources, Italian officials are negotiating a contract worth 1.5 billion euros (approximately 2.3 trillion won) with SpaceX to encrypt telephone and internet communications used by their government at the highest level.

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The deal, which has been underway since 2023, reportedly includes communication services for the Italian military in the Mediterranean region and the launch of a 'Direct to Cell' satellite service to be used in emergencies such as terrorism and natural disasters. Direct to Cell refers to a method where low-earth orbit satellite communications connect directly with mobile phones and other devices without going through existing base stations.

Regarding the contract, some Italian officials expressed concerns that SpaceX's satellite communication service might disrupt local telecom operators, but sources said that the Italian intelligence agency and Ministry of Defense have already completed the approval process.

The news of this contract pursuit came right after Italian Prime Minister Giorgia Meloni visited the United States and met with President-elect Donald Trump. Meloni, Italy's first female prime minister and leader of a hard-right party, is considered the European leader most aligned with Trump among her peers. She also shares a close relationship with Musk, who is known as Trump’s 'first buddy.'

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Bloomberg explained, "Negotiations had been at a standstill until recently, but progress was seen after Prime Minister Meloni’s visit to President-elect Trump," adding, "Trump, who often described himself as America’s greatest salesman during his first term, frequently used high-level meetings with counterparts."

SpaceX dominates the global low-earth orbit satellite communication market through its satellite internet service, Starlink. Having added more than 20 countries including Ghana and Argentina to its Starlink customer list just last year, SpaceX currently serves 4 million users across over 100 countries and regions. Recently, it has expanded its business to military satellite services with Starshield, which has been spotted active on the Russia-Ukraine battlefield.

Bloomberg assessed, "SpaceX is covering the world with broadband services, pushing out existing telecom operators, and outpacing competitors at the national level such as Amazon and China," attributing this to "a powerful combination of SpaceX’s technological leap, savvy business acumen, and Musk’s expanding political influence."