Geopolitical Tensions Stall Starlink Deal with Italian Government

Negotiations for a contract between Elon Musk's Starlink and the Italian government have stalled due to geopolitical tensions. The Italian defense minister cited a shift from technical discussions to focus on statements by Elon Musk. The stalled deal is valued at 1.5 billion euros over five years.

Negotiations for a potential contract between Elon Musk's Starlink and the Italian government have hit a roadblock, largely due to broader geopolitical tensions, Italy's defense minister revealed on Saturday.

Under the leadership of Prime Minister Giorgia Meloni, the government aims to secure encrypted communications for officials in risky zones, with Starlink among the contenders for this significant contract. However, discussions have shifted from mere technicalities to statements by, and concerning, Elon Musk, according to remarks by Guido Crosetto, cited by La Repubblica. Starlink, a major player with 6,700 low-orbit satellites, was eyed for a five-year agreement worth 1.5 billion euros.

The ongoing discussions have also stirred controversy among opposition figures, who critique the idea of awarding a national security contract to a foreign entity closely aligned with former U.S. President Donald Trump. Crosetto expressed hopes that once tensions subside, discussions will realign to technical grounds. Starlink has been operational in Italy since 2021.

(With inputs from agencies.)