Key facts
- The Japanese government will provide 150 billion yen ($926 million) in subsidies to a Rakuten Group-led consortium.
- The consortium will develop a domestic satellite communications network.
- Rakuten Group is partnering with U.S. startup AST SpaceMobile to form a joint venture.
- The new company will purchase and operate low Earth orbit satellites for direct-to-mobile communications.
- Services are planned to launch in some regions in 2026.
- The initiative aims to create a communication infrastructure independent of foreign entities, challenging SpaceX's Starlink.
The Japanese government is preparing to offer approximately 150 billion yen ($926 million) in subsidies to a consortium led by Rakuten Group. This support is intended for the development of a domestic satellite communications network, designed to provide direct-to-mobile access and serve as an alternative to SpaceX's Starlink service. The initiative is driven by concerns over economic security and the risks associated with relying on foreign operators for critical communication infrastructure.
Rakuten Group plans to establish a joint venture with U.S.-based AST SpaceMobile within 2026. This new entity will be responsible for purchasing and operating low Earth orbit satellites. Rakuten Mobile aims to begin offering communication services utilizing AST's satellites in select areas in 2026, with a gradual transition to its own proprietary network. The company is also exploring options to provide access to non-Rakuten subscribers during emergencies.
AST SpaceMobile's technology involves satellites with large antennas capable of communicating directly with standard smartphones, even in remote or disaster-affected areas. This direct-to-device capability could potentially transform the cost structure of base station development. However, the venture faces challenges including satellite launch and operational costs, as well as ensuring communication quality. Rakuten's existing mobile business expansion and the financial impact of these satellite investments will also be closely watched.