Italy is reportedly in advanced talks with Elon Musk's SpaceX about a deal that will see the tech company provide the government with encryption and internet services.

After a long period of stalemate, the agreement is almost complete, according to sources quoted by Bloomberg on Sunday.

The publication added that the deal, which is worth €1.5 billion, also includes communication services for the Italian armed forces in the Mediterranean, as well as direct-to-cell satellite services to be used in case of emergencies such as terrorist attacks or natural disasters.

Direct-to-cell satellite services, like Starlink's Direct to Cell, provide connectivity for text, voice, and data services directly to standard Long Term Evolution (LTE) phones using satellites. These services enable communication in remote areas without the need for traditional cell towers.

Bloomberg says the deal, if cleared, would represent the largest European project of its kind.

While negotiations are still ongoing, the news network said that the project has already been approved by the Italian intelligence services and Ministry of Defence.

According to the publication, the deal has been under review since mid-2023, with some Italian officials opposed to the move.

The news comes as prime minister Giorgia Meloni returns from Florida where she met President-elect Donald Trump at his Mar-a-Lago residence ahead of his inauguration on January 20.

In recent years, the prime minister has met with Musk several times to discuss how to foster the growth of the Italian space industry and other areas of mutual interest.

Last month, Reuters reported that Italy intends to start testing as early as this month to see if the satellite connectivity offered by Musk's Starlink can be a viable solution to increase the spread of high-speed Internet in the country.

SpaceX and Italy's Defence Ministry did not immediately respond to requests for comment.

---