Japanese Grant of Up to ¥148 Billion for Rakuten and AST Satellite Connectivity Project
Key Facts
Rakuten said on November 9 that its joint venture with AST SpaceMobile is eligible for a government grant of up to ¥148 billion over about 3 years. The two parties agreed to establish the new company, Rakuten AST, on November 6, Japan time, according to a Rakuten statement. Under the announced plan, the support will come from the Ministry of Internal Affairs and Communications through Japan’s Telecommunications and Information Network Association, after the proposal was selected for the J-LEO program. The project aims to build a direct communications network between satellites and commercial phones. The grant sets a funding ceiling and a timetable of about 3 years for a project intended to provide coverage in areas beyond terrestrial mobile networks.
Rakuten held 51% of the voting rights in the company at its establishment, while AST SpaceMobile’s Japanese subsidiary held 49%. Rakuten Chairman Hiroshi Mikitani said the project is “a key pillar of Rakuten Mobile’s network strategy.” He added that the company aims to expand business opportunities in the satellite communications sector. The share distribution gives Rakuten the lead in the joint venture, with AST’s Japanese arm participating in its ownership. Mikitani directly linked the project to Rakuten Mobile’s network strategy, while the statement did not specify revenue or the companies’ expected investment.
The planned service will connect commercial phones to satellites using spacecraft in low Earth orbit. The plan focuses on mountainous areas and islands outside mobile coverage, as well as maintaining communications during disasters and emergencies. The statement points to an emergency roaming framework between mobile network operators to provide connectivity during emergencies. Rakuten says users will be able to access high-speed internet, including video streaming and social media, on commercial phones without special equipment. AST Chairman Abel Avellan described the project as strengthening “the resilience of Japan’s communications infrastructure.”
The company aims to build the satellite network and begin domestic operations by the end of March 2029. The two parties will deploy satellites compatible with the mid-band spectrum and manage their operations, according to Rakuten’s statement. The target date provides a timetable for carrying out the project after the proposal’s selection for the J-LEO program, while the announced grant remains capped at ¥148 billion over about 3 years. Avellan said the network’s capacity outside Japan could support the company’s global network, subject to regulatory approvals. The statement did not specify a date for those approvals or a separate timetable for using capacity outside the country.
The J-LEO project differs from another commercial test that Rakuten Mobile plans for 2026 for a direct-to-satellite connectivity service. The company said the forthcoming test in a commercial environment is separate from the joint venture backed under the J-LEO program. In an August 2026 update on its second-quarter results, AST said its network included 13 spacecraft in orbit. In the same update, it said it had signed partnerships with more than 60 mobile network operators whose networks together cover more than 3 billion subscribers. Rakuten shares closed at ¥620 on November 6, 2026, the closing price reported by EL7 data.