SpaceX Alleges Mobile Network Obstruction of Starlink in Italy, Threatens to Redirect Investments

Space Exploration Technologies Corp. (SpaceX), the aerospace manufacturer founded by Elon Musk, has alleged that Telecom Italia SpA is obstructing the deployment of its Starlink high-speed internet services in Italy, with repercussions potentially stretching across southern Europe and northern Africa. The accusations have been levied in a complaint to Italy’s communications watchdog body and the Industry Ministry, as per documents reviewed by Bloomberg.

The standoff revolves around Starlink's claim of Telecom Italia's failure to comply with regulations pertaining to the sharing of spectrum data, a crucial step aimed at averting frequency interference issues. This bottleneck is purported to be significantly slowing Starlink's rollout, as the satellite internet provider continues its attempts to expand its network in Europe and extend its reach to adjacent regions.

SpaceX's Starlink, which offers broadband internet through a constellation of approximately 5,500 satellites launched since 2019, alleges that other carriers, unlike Telecom Italia, have indicated willingness to coordinate on the use of frequencies. The lack of collaboration from Telecom Italia, Starlink asserts, may not only hinder its Italian operations but also potentially lead to service disruptions in broader geographical areas that rely on equipment situated in Italy.

Evidence of the financial reverberations of this dispute has been reflected in the decline in Telecom Italia Capital bonds, hinting at investor concerns over the potential impact of these developments on the carrier's future prospects. Telecom Italia, however, has pushed back against these accusations, referring to the characterization of events as partial and misleading while alluding to ongoing discussions between the parties.

Should the standoff continue without resolution, SpaceX has indicated that it could pivot its investments away from Italy and towards other European nations. Starlink's ambition to become a significant revenue stream for SpaceX hangs in the balance, with the satellite services provider already holding a customer base of around 2.6 million.

The claims stress the importance of avoiding unnecessary conflicts in the burgeoning sector of satellite internet services. As SpaceX continues to fortify its position, not just in commercial spaceflight but also as a formidable player in international security, industry observers and stakeholders are closely watching the unfolding situation.

No immediate response was provided by representatives from Agcom or Italy's Industry Ministry on the matter, nor from a SpaceX representative. Meanwhile, Telecom Italia's struggles continue, characterized by factors such as steep labor costs and pressure to keep its infrastructure updated, amidst a backdrop of its recent landline network sale to KKR & Co.

The confrontation between Starlink and Telecom Italia underscores the complex interplay between emerging space-based services and established telecommunications entities. The resolution to this impasse could set a precedent for future collaborations—or conflicts—in the rapidly evolving arena of global connectivity.