Rakuten Group and AST SpaceMobile have established Rakuten AST, a joint venture to build a satellite network in Japan that connects directly to commercially available smartphones. The project is intended to extend communications coverage and provide a more resilient link during disasters and other emergencies.
Japan’s communications ministry selected the partners’ proposal for a government-backed low-Earth-orbit satellite program. Rakuten AST is expected to receive up to 148 billion yen—about $1 billion—over roughly three years to support the project.
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Project funding: The ministry selected the joint proposal under its Japan Low Earth Orbit Satellite Communications Project. Funding is expected to flow through the Communications and Information Network Association of Japan, which was established to manage the program.
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Roles: Rakuten AST will work with AST SpaceMobile to deploy and manage satellites for the network. AST SpaceMobile will supply satellites designed to use mid-band spectrum.
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Timing and purpose: The partners aim to begin domestic operations by the end of March 2029. The network is intended to provide direct satellite connections to ordinary smartphones, including in areas with limited coverage, and to strengthen Japan’s communications infrastructure during emergencies.
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Strategic framing: The project is described as a Japanese-flagged satellite constellation and part of an effort to strengthen the country’s economic security. The announcement also says it will use some of the largest communications satellites deployed in low Earth orbit.
The agreement creates a Japan-focused route for AST SpaceMobile’s satellite technology, backed by substantial public funding. The announcement sets a target for service to begin by March 2029; it does not specify the joint venture’s ownership split or other financial terms between the partners.