How Elon Musk's Space X is looking to gain ground in Italy

MILAN (Reuters) - Billionaire Elon Musk is looking to carve out a role in Italy's telecommunications system by expanding his aerospace business Space X and satellite broadband venture Starlink.

Italy is evaluating potential supply accords with Starlink and Musk said on Monday that he was "ready to provide Italy the most secure and advanced connectivity!".

Italian Prime Minister Giorgia Meloni has developed a strong relationship with Musk, a close ally of incoming U.S. President Donald Trump.

Starlink, part of Musk's SpaceX aerospace business, has 6,700 active satellites in low-Earth orbit and is a dominant force in the sector, controlling nearly two thirds of all active satellites.

It provides low-latency broadband to more than four million customers across the globe, of whom about 55,000 are in Italy, the euro zone's third largest economy.

Here are the main projects being discussed:

SECURE COMMUNICATIONS

Italy is evaluating the use of Musk's space-based telecommunications system to provide secure communications between the government, Italian diplomats and defence officials operating in sensitive areas across the Mediterranean.

Reportedly worth 1.5 billion euros ($1.6 billion) and spread over five years, the project has been under discussion for months. It was made public last October by Italy's Foreign Minister Antonio Tajani.

While confirming talks with Space X, Meloni's office on Monday rejected suggestions that was a topic of discussion during the prime minister's surprise visit to meet President-elect Donald Trump over the weekend.

These secure services offered by Musk would be a more immediate solution compared to the EU's IRIS2 (Iris squared) satellite constellation.

The multi-orbit array of more than 280 satellites, which aims to provide an encrypted backbone for EU governments and public agencies, is facing cost overruns, problems in financing and a full roll-out is not expected before end of 2030.

REMOTE AND UNDERSERVED AREAS

The Italian government is considering using Starlink services to boost Internet penetration in the most remote areas of the country in response to slow progress by state-backed companies in public-funded fibre roll-out programmes.

The government is preparing as early as this month to test the space-based service to check whether it is a viable alternative to enhance access to high-speed internet.

TELESPAZIO

Last June, Telespazio, a joint venture between Italian defence and aerospace group Leonardo and French peer Thales, signed a joint venture to commercialise Starlink's services.

Under the deal, Telespazio integrated Starlink into its existing network.

(Reporting by Elvira Pollina; Editing by Keith Weir)