AST SpaceMobile And Rakuten Form Rakuten AST JV To Build Direct-To-Device Communications Network In Japan; Receives ~$1B In Funding From Japan's MIC
Benzinga Newsdesk 3 hours ago
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Companies agreed to establish Rakuten AST, Inc. on November 6, 2026 (Japan Standard Time)*1. The joint venture is tasked with building a direct-to-device communications network in Japan using low Earth orbit (LEO)
Companies agreed to establish Rakuten AST, Inc. on November 6, 2026 (Japan Standard Time)*1. The joint venture is tasked with building a direct-to-device communications network in Japan using low Earth orbit (LEO) satellites to provide service to commercially available smartphones, strengthening Japan’s communications infrastructure in the event of disasters and other emergencies.
The Ministry of Internal Affairs and Communications' (MIC) selected the joint proposal from Rakuten’s preparatory company and Rakuten Mobile, Inc. for the publicly solicited "J-LEO: Japan Low Earth Orbit Satellite Communications Project"*2. Rakuten AST is expected to receive up to 148 billion yen (approx. 1 billion USD) in support over approximately three yearsunder J-LEO, through the Communications and Information Network Association of Japan (CIAJ), the organization established to manage the fund*3,4. Through this joint venture, Rakuten AST will collaborate with AST SpaceMobile to deploy and manage satellites compatible with mid-band spectrum, in order to establish a satellite communications network and commence domestic operations by the end of March 2029.
The J-LEO Project will leverage the largest communication satellites ever deployed in LEO to build domestic communications infrastructure that enables direct satellite-to-smartphone connectivity and strengthens economic security. In addition to extending cellular broadband connectivity to areas with limited or no terrestrial coverage, the project aims to ensure cellular broadband connectivity during emergencies, such as natural disasters, by establishing a framework for emergency inter-carrier roaming among mobile network operators.
Through Rakuten AST, Rakuten and Rakuten Mobile aim to establish a non-terrestrial network (NTN) managed and operated in Japan. The companies will deploy and operate a resilient, stable communications infrastructure capable of maintaining priority and stable connectivity, independent of external conditions – even in times of emergency.
The satellite communications service to be deployed by Rakuten AST will leverage AST SpaceMobile's large-scale satellites to enable high-speed internet connectivity — such as video streaming and social media — on off-the-shelf smartphones without the need for specialized equipment*5. Because the base station equipment is installed on ground-based infrastructure, Japanese telecommunications operators can flexibly and autonomously manage and operate the network.
AST SpaceMobile will supply the satellites to power Japan's sovereign D2D constellation. Beyond priority Japanese domestic market usage, Rakuten AST also plans to work with AST SpaceMobile to provide these services through AST SpaceMobile to its customers worldwide, subject to regulatory approval.
Rakuten Mobile will also work with AST SpaceMobile to advance the use of AI edge computing and plans to develop AI-driven spectrum management technology, exploring their application for higher-speed data communications and industry-specific solutions such as IoT. The company aims to expand its solution offerings beyond telecommunications carriers to include connectivity-reliant industries, such as logistics, infrastructure monitoring, construction, and agriculture.