Italy Could Make a Deal with Eutelsat as Starlink Talks Stall

Eutelsat could sign a deal to supply the Italian government with satellite communications services. Italy ran into difficulties with Starlink, which had appeared as a front-runner for the contract.

The French satellite provider is considered an alternative provider to SpaceX’s Starlink, and CEO Eva Berneke ramped up speculation during a hearing with French politicians. It appeared in January that Starlink was close to reaching a five-year deal worth €1.5 billion with Italy, with Bloomberg reporting the satellite broadband provider could provide the nation with a range of communications services for government employees and the country’s military.

The deal was tipped to follow an agreement between SpaceX and Ukraine operator Kyivstar to provide D2D services in the country. However, relations between the US and Europe have notably worsened in recent times, and given Musk’s strong links to the Donald Trump administration, Starlink’s role in the continent has come into question.

“Starlink ties Italy very closely to the US, but as you have seen with Ukraine, it requires a continuation of good relations with Elon Musk to guarantee sovereignty,” said Berneke during the hearing. Her comments came after Italy’s defense minister revealed that talks with SpaceX had stalled. Berneke apparently suggested a tender would be held in Italy for the contract later this year, and Eutelsat could use space capacity from an existing deal with Telecom Italia for a satellite in geostationary orbit for consumers.