MILAN (Reuters) - Italy's telco association is urging a review of regulations for low-earth orbit satellite broadband operators to ensure they face the same rules as other telecoms companies, including on data security, a document seen by Reuters showed.

The call from lobby group Asstel, which includes Telecom Italia (TIM), France's Iliad and Swisscom's Fastweb, comes as Rome is considering involving satellite-based Starlink in plans to boost high-speed Internet coverage in remote areas of the country.

In the document, Asstel says existing rules are not designed to take into account the business model of companies such as Starlink, which offers a service directly to consumer devices and competes directly with local telecoms operators.

It cites regulation concerning the use of frequencies and it also asks for satellite broadband operators to comply with telco regulation on the storage of sensitive data, and possibly to impose rules on holding them locally.

The document was an Asstel internal memo, whose content was discussed with a number of politicians, according to sources familiar with the matter.

Part of Elon Musk's SpaceX aerospace business, Starlink has 6,400 active satellites orbiting Earth, providing low-latency broadband to more than four million customers across the globe, of which only about 50,000 are in Italy.

Telecoms operators in Italy are struggling in a market hit by shrinking revenue and low margins amid stiff price competition, which is hitting investor returns.

Italy's cabinet undersecretary Alessio Butti has said the government has been exploring using Starlink to make up for delays accumulated by companies in charge of a European Union funded fibre rollout plan, worth 3.4 billion euros ($3.6 billion).

State backed fibre-optic firms Open Fiber and its rival FiberCop, formerly owned by TIM, have cabled only around a third of the 3.5 million buildings targeted by the programme, which is due to complete by June 2026. ($1 = 0.9510 euros)

(Reporting by Elvira Pollina; Editing by Keith Weir)

By Elvira Pollina