Rakuten, AST SpaceMobile Form Japan Satellite-to-Phone Venture Rakuten AST
Rakuten Group and AST SpaceMobile agreed on November 6, 2026, to set up Rakuten AST, a venture to build a satellite-to-smartphone network in Japan. Japan's communications ministry selected the plan and is expected to provide up to 148 billion yen over about three years.
Rakuten Group, Inc. and AST SpaceMobile, Inc. agreed on November 6, 2026, Japan Standard Time, to establish Rakuten AST, Inc., a joint venture to build a satellite-to-smartphone network in Japan. The companies announced the deal on November 9. AST SpaceMobile forms joint ownership of the new company's mission with Rakuten, aiming to serve ordinary phones from low Earth orbit.
Japan's Ministry of Internal Affairs and Communications (MIC) selected the joint proposal from Rakuten's preparatory company and Rakuten Mobile, Inc. It won the public tender for the J-LEO project, the Japan Low Earth Orbit Satellite Communications Project.
Funding and timeline
Rakuten AST is expected to receive up to 148 billion yen, roughly 1 billion US dollars, over approximately three years. The money flows through the Communications and Information Network Association of Japan (CIAJ), the body set up to manage the fund.
The venture plans to deploy satellites compatible with mid-band spectrum and begin domestic operations by the end of March 2029.
What the network will do
The service is designed to work on commercially available smartphones without specialized equipment. Users could stream video and use social media, the companies said. Because base station equipment sits on ground-based infrastructure, Japanese telecom operators can manage and run the network themselves.
The project aims to extend cellular broadband to areas with limited or no terrestrial coverage. It also targets emergencies such as natural disasters, with a framework for emergency roaming between mobile network operators.
AST SpaceMobile will supply the satellites for what the companies describe as Japan's sovereign direct-to-device constellation. They say the project will use the largest communication satellites ever deployed in low Earth orbit.
Beyond Japan
Rakuten AST also plans to work with AST SpaceMobile to offer these services to AST SpaceMobile's customers worldwide, subject to regulatory approval.
Rakuten Mobile will also work with AST SpaceMobile on AI edge computing and plans to develop AI-driven spectrum management technology. It aims to reach industries such as logistics, infrastructure monitoring, construction and agriculture, not only telecom carriers.
