Negotiations between Elon Musk's satellite internet provider, Starlink, and the Italian government have come to a halt, with Italy's defence minister citing geopolitical concerns as a key factor in the delay on March 22.

The Italian Prime Minister Giorgia Meloni's administration has been exploring options to secure encrypted communications for government officials, diplomats, and defence personnel operating in high-risk areas. Starlink, a major player in satellite communications with a fleet of 6,700 low-orbit satellites, has been considered a leading contender for the contract. 

However, the Italian Defence Minister Guido Crosetto indicated that discussions had stalled, shifting away from purely technical deliberations to broader concerns related to Musk's public statements and geopolitical positioning, according to a recent report by Reuters.

Negotiations had become entangled in wider debates surrounding Musk's influence and affiliations, rather than focusing solely on the technical merits of Starlink's services. As per Reuters report, Rome had been considering a five-year contract valued at approximately 1.5 billion euros (USD 1.62 billion) with Starlink, a subsidiary of Musk's SpaceX group.

The proposed agreement has drawn criticism from opposition politicians, who have raised concerns over the implications of awarding a national security contract to a foreign business entity. Musk's close ties to former U.S. President Donald Trump have also been cited as a potential risk factor in the decision-making process.

Despite the current impasse, Crosetto suggested that discussions could resume once political tensions subside. Starlink has been operational in Italy since 2021.