Rakuten and AST plan a Japan satellite network backed by up to $1 billion
The proposed venture targets service by March 2029, with government support for direct-to-smartphone coverage and disaster resilience.
Rakuten and AST SpaceMobile announced plans Monday for a Japanese satellite communications venture backed by up to 148 billion yen, or about $1 billion, in government support. The aim is to connect ordinary smartphones directly to satellites, including when disasters disrupt ground-based mobile networks.
The companies agreed on November 6 to establish Rakuten AST this month. Rakuten will hold 51% of the voting rights and an AST subsidiary 49%. The project targets the start of domestic operations by the end of March 2029.
Funding for a network still to be built
Rakuten says the support is expected over about three years under Japan's J-LEO program, through the organization managing the fund. The ceiling is not the same as cash already received, and the announcement is not the launch of a finished commercial network.
AST will supply satellites for the Japanese-managed constellation. The companies plan to extend coverage to places with limited ground service and support emergency communications. Providing capacity to AST customers outside Japan is also planned, subject to regulatory approval.
For AST, the venture creates another route to deploy its satellite technology, but execution still depends on building and launching the network. The 2029 project is separate from Rakuten Mobile's plan to begin commercial-environment testing of its existing AST satellite-to-mobile partnership during 2026.
