Eutelsat could reportedly be in line to clinch a deal to supply Italy’s government with satellite communications services, as doubts continue over a tie-up with Elon Musk’s SpaceX which had appeared as a front-runner for the contract.

Reuters reported the French satellite provider is considered an alternative provider to SpaceX’s Starlink, and CEO Eva Berneke ramped up speculation during a hearing with French politicians.

It appeared in January that Starlink was close to reaching a five-year deal worth €1.5 billion with Italy, with Bloomberg reporting the satellite broadband provider could provide the nation with a range of communications services for government employees and the country’s military.

The deal was tipped to follow an agreement between SpaceX and Ukraine operator Kyivstar to provide D2D services in the country.

However, relations between the US and Europe have notably worsened in recent times, and given Musk’s strong links to the Donald Trump administration, Starlink’s role in the continent has come into question.

“Starlink ties Italy very closely to the US but as you have seen with Ukraine, it requires a continuation of good relations with Elon Musk to guarantee sovereignty,” said Berneke during the hearing.

Her comments come after Italy’s defence minister revealed talks with SpaceX had stalled.

Berneke apparently suggested a tender would be held in Italy for the contract later this year, and Eutelsat could use space capacity from an existing deal with Telecom Italia for a satellite in geostationary orbit for consumers.

Eutelsat, which merged with UK’s OneWeb in 2023, rivals Starlink in Europe, operating a constellation of Low Earth Orbit (LEO) satellites.

Reuters reported the European Union is also racing to find a replacement for Starlink in Ukraine.