Canada's Telesat eyes secure Italian satellite connectivity contract, sources say

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ROME, May 26 : Canada's Telesat held preliminary talks with Italy to provide satellite services to ensure encrypted communications for the government, diplomats and defence officials operating in high-risk areas, three sources close to the matter said on Tuesday.

Satellite connectivity has become a highly sensitive issue in Italy after talks between the government and Elon Musk's Starlink to provide secure systems stalled last year, reflecting growing tension between Europe and the United States.

Telesat, which according to its website operates 11 geostationary satellites, plans to launch 150 to 200 low-Earth-orbit (LEO) satellites from this year for commercial and military use.

The sources, who declined to be named, said Telesat representatives held initial discussions with the Italian government, but no financial details were addressed at this stage.

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One of the sources said the latest talks took place this month. Another added the government had not yet given any feedback on the Telesat proposal.

A spokesperson for Telesat said the group was unable to provide any comment on the matter for now.

Sources told Reuters last year that Rome had considered a five-year, €1.5 billion ($1.6 billion) deal with SpaceX's Starlink, the dominant operator in the sector with around 7,000 active LEO satellites.

LEO satellites operate 36 times closer to Earth than traditional ones so they take less time to send and receive information, leading to better and faster broadband service even in remote areas.

(Editing by Emelia Sithole-Matarise)

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