Eutelsat, a Franco-British satellite operator and a competitor to Starlink, is in discussions with the Italian government to provide secure satellite communication systems. Sources familiar with the matter told Reuters that Italy is seeking to secure encrypted communication channels for its government officials, diplomats, and defense personnel in high-risk areas. Eutelsat’s potential involvement highlights Europe’s ambition to develop domestic alternatives to Starlink, which currently dominates the market1. The sources, who remained anonymous, did not reveal the progress of Eutelsat’s negotiations. Eutelsat has around 650 low orbit satellites. A Eutelsat representative told Reuters that the company frequently collaborates with European governments and institutions on secure satellite communications as part of its efforts to provide sovereign connectivity, but declined to comment on specific negotiations. While Eutelsat’s network is smaller than Starlink’s, which has 6,700 active satellites, Eutelsat’s stock has increased due to discussions with the European Union regarding enhanced internet access in Ukraine. Eutelsat was originally a collaboration between Italy and France but is now primarily under French leadership. Telespazio, a partnership between Italy’s Leonardo (67%) and France’s Thales (33%), holds the Italian concession.

The Italian government is aiming to develop its own low-orbit satellites with the involvement of key national players, but this does not provide an immediate solution. In January 2025, Prime Minister Giorgia Meloni indicated that no public alternatives were currently available, citing delays in the EU’s IRIS² satellite project. Earlier in the year, a source indicated that Rome was considering a five-year agreement with Starlink valued at approximately €1 billion. Discussions between Meloni’s administration and Musk’s Starlink have faced opposition in Italy, with concerns raised about entrusting a national security contract to a foreign entrepreneur. Meloni, who is aligned with U.S. President Donald Trump, is navigating increasing tensions between the United States and Europe regarding support for Ukraine. The Italian government has stated that no contracts have been finalized with Musk.

TIM approved the sale of Sparkle earlier this week, with contracts set to be signed by April 11. The completion of the sale is expected within the first quarter of 2026, subject to certain regulatory procedures. The Italian Treasury and Retelit bid to take control of Sparkle last October, having previously had a €600 million offer rejected months earlier. TIM said the successful bid “recognises the enterprise value” of the subsea firm. The Italian government sees Sparkle as a strategic asset due to its role in transmitting data across the Mediterranean and to the Americas. The deal is now subject to approval from Italian antitrust authorities and a Golden Power review, given Sparkle’s status as a strategic asset and Asterion’s involvement as a foreign investor.

An Italian court rejected Vivendi’s request to annul the sale of Telecom Italia’s (TIM) landline grid to investment firm KKR. Vivendi, which holds a 24 percent stake in TIM, previously called the €22 billion ($22.5bn) sale “unlawful”. TIM approved the sale without holding a conditional vote with shareholders, something that angered Vivendi. The company is considering its future with TIM, Italy’s biggest mobile carrier5. Vivendi said it plans to appeal the court’s decision. Despite Vivendi’s objection to the deal, TIM said the board had acted within its rights. The deal was finally completed in July 2024, after TIM agreed to sell its landline grid network to KKR the previous November. TIM has also been looking to shift its subsea unit Sparkle and last month confirmed that it received a binding offer of €700 million ($717m) for the unit from Italy’s Ministry of Economy and Finance (MEF) and Retelit, a company controlled by the Asterion fund.