AST SpaceMobile to Launch 50-50 JV with Rakuten for 150 B Yen J-LEO Project
SPCX•AST SpaceMobile will form a 50-50 joint venture with Rakuten this year to buy and operate satellites for direct-to-smartphone service in Japan, targeting nationwide coverage by fiscal 2027 and eventual global rollout. The deal positions ASTS against SpaceX-backed Starlink rivals in Japan’s 150 billion yen J-LEO project.
1. Joint Venture Structure
AST SpaceMobile and Rakuten will each hold 50% of the new joint venture, with Rakuten leading management. The partners will purchase and operate low-Earth orbit satellites specifically designed for direct-to-smartphone service across Japan.
2. Service Rollout and Expansion Plans
The JV plans a phased launch beginning late 2026, aiming for full nationwide coverage by fiscal 2027. Executives have also flagged a potential global rollout through the same new company, contingent on initial success in Japan.
3. Competitive and Governmental Context
The venture directly challenges existing services from KDDI, SoftBank and NTT Docomo, which use SpaceX’s Starlink network. It also competes for a government-backed J-LEO project valued at 150 billion yen, which requires nationwide direct-to-cell coverage by March 2029.
