(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)
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