Starlink and Italian government’s deal has stalled, in disapproval of Musk’s Doge role

Elon Musk’s satellite internet service provider Starlink and the Italian government’s potential contract has stalled, in a possible sign of the growing geo-political tensions, according to Italy’s defence minister.

This comes as the market and stakeholders of Musk’s several businesses including Starlink, Tesla, and the social network X platform, are disgruntled because of his role in the Department of Government Efficiency (DOGE) initiative in President Donald Trump’s administration, which has seen the US cut federal spending. Users of Starlink in particular in the UK and Europe are reportedly already having second thoughts about continuing with the service provider.

Starlink shortlisted for crucial national security initiative

Italy had earmarked Starlink to be one of the service providers in its initiative to ensure encrypted communications between government, diplomats and defence officials who operate in risky areas.

Despite being one of the contenders for the project, defence minister Guido Crosetto was quoted by La Repubblica newspaper on Saturday saying the contract between his government and Starlink had stuck.

“It seems to me that everything has come to a standstill.”

Crosetto.

Crosetto revealed that the hold-up was partly due to the fact that discussions between the two parties had moved from technical aspects to “statements” by and about Elon Musk.

According to a Reuters report, Starlink is a dominant force in the sector accounting for 6,700 active low-orbit satellites. Sources have also revealed that Rome was thinking about a five-year deal at a total of $1.5 billion euros or $1.62 billion with Starlink, which is part of Musk’s SpaceX group.

Disgruntled politicians question the logic behind the Starlink relationship

The report further explains that deliberations between Prime Minister Giorgio Meloni’s government and Starlink had sparked outrage among opposition politicians who have queried the logic of dealing with Starlink on the initiative.

These have expressed concerns over giving Starlink a national security contract to a foreign businessman and a close ally of President Trump.

Crosetto has however revealed there are still chances of reviving talks with Starlink. He said that deliberations will move back to a technical level once the situation calms down.

“The point is: what is most useful for the nation.”

Crosetto.

Starlink has been offering its services in Italy since 2021.

Ever since its owner, Musk’s involvement in the DOGE, stakeholders from across the globe have been unhappy with the tech billionaire and have openly shown it. In the UK and Europe, Starlink users have indicated their desire to switch to other users.

In the UK where users have been increasing, Starlink’s market is mainly made up of individuals and businesses in rural areas with poor broadband access, even though there is also a minority of “preppers” and other people who buy the tech as Musk’s fans.

However, some of these users have indicated they have switched off the satellite internet system for other service providers, while others are still using it due to a lack of a suitable alternative.

Not only is Starlink affected but investors and ordinary people have also reacted unfavourably to electric vehicle maker Tesla.

A recent ABC News report revealed that vehicles, dealerships and charging stations were vandalized and face arson since Musk started his White House role leading to mass layoffs of government workers.

Investors are also concerned about Musk’s role under President Trump, as shares of Tesla took a dip losing as much as 15% on 10 March.

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