Italy Pursues KRW 2 Trillion 'Security Communication Network' Contract With Musk's SpaceX

Italy is seeking a 2 trillion won deal with Elon Musk-led space company SpaceX to build the government's secure communications network, Bloomberg reported, citing multiple sources.

Bloomberg reported that Italian officials are negotiating a 1.5 billion euro (about 2.3 trillion won) deal to encrypt phone and internet communications used by their governments to the highest levels.

Sources said the deal included matters related to military communications services in the Mediterranean region and the launch of a "direct-to-cell" satellite service for emergencies such as terrorism and natural disasters.

Direct-to-cell refers to a method in which low-orbit satellite communication and terminals such as mobile phones communicate directly without going through existing base stations.

The terms of the contract being pursued are five years, with negotiations ongoing and a final settlement is yet to be reached, the sources added.

However, the Italian intelligence agency and the Ministry of Defense have already completed the approval process regarding this contract.

The news came shortly after Italian Prime Minister Jorja Meloni visited the U.S. the day before and met with U.S. President-elect Donald Trump.

Bloomberg pointed out that negotiations had stalled until recently, but "we have seen progress since Meloni visited Trump."

"President-elect Trump used to describe himself as a kind of 'best salesman' for business in the United States when he took power for the first time," he said, adding that he often used high-level meetings with the other party.

SpaceX is dominating the global low-orbit satellite communication market through Starlink, a satellite Internet service. Currently, 4 million people in more than 100 countries and regions use Starlink.

SpaceX is also building a military satellite service called Starshield.

Bloomberg said SpaceX is "conquering the global satellite communications market thanks to its technology leap, astute business strategy and Musk's growing political clout."