Rakuten and AST SpaceMobile will form a 50-50 JV to buy and operate satellites for direct-to-mobile service in Japan, with Rakuten leading management and minimal investment burden. Service rollout begins late 2026 with nationwide coverage in fiscal 2027, challenging SpaceX-backed rivals for Japan’s 150 billion yen J-LEO satellite project.
Rakuten and AST SpaceMobile will each hold a 50% stake in the new joint venture, with Rakuten assuming operational leadership. The companies expect the investment to remain modest so as not to impose significant financial burden on either partner.
The satellite-to-smartphone service is slated to launch in phases starting at the end of 2026, with full nationwide coverage in Japan targeted for fiscal 2027. The partners are also evaluating options for a potential global rollout at a later stage.
This venture directly challenges SpaceX-backed Starlink networks already deployed by KDDI, SoftBank and NTT Docomo for direct-to-mobile communications. Establishing a domestic alternative aims to capture market share in Japan’s growing satellite connectivity sector.
The JV is competing in Japan’s J-LEO initiative, a 150 billion yen program seeking a domestically controlled low-Earth orbit network. Requirements include nationwide direct-to-cell coverage by March 2029, support for video calls and maintained service during emergencies.
