Rakuten and AST Agree on Japan Satellite Network With Support of Up to $1 Billion
Key Facts
Rakuten Group and AST SpaceMobile agreed to establish Rakuten AST to build a direct-to-device communications network using low Earth orbit satellites in Japan, in an agreement dated November 6, 2026, Japan time. Rakuten said the project could receive support of up to 148 billion yen, or about $1 billion, over approximately three years under Japan’s J-LEO project. The potential funding gives the plan broad government backing as the companies prepare to build a satellite service aimed at the domestic market. The partnership comes as investor attention in the space sector focuses on companies’ ability to turn satellite networks into commercial communications services. Rocket Lab is scheduled to report results after the market closes on November 9, but moves in space companies’ shares during that day’s session could not be verified from a reliable open source.
Voting rights in the venture were divided at formation, with 51% held by Rakuten Group and 49% by AST SpaceMobile Japan Holdings II GK, an indirectly wholly owned subsidiary of AST SpaceMobile. The arrangement makes Rakuten the larger shareholder in the Japanese entity, with AST participating through its subsidiary. The plan centers on building a low Earth orbit satellite network that enables direct-to-device connectivity. The partnership aims to extend cellular coverage to areas where terrestrial networks are limited or unavailable. It also aims to establish a framework for emergency roaming between mobile network operators during disasters.
Rakuten said the service would provide high-speed connectivity on commercially available phones, including video streaming and social media use. Users, according to the company, will not need specialized equipment to access satellite connectivity. The model relies on ordinary phones to extend service beyond terrestrial coverage areas, while keeping mobile network operators part of the emergency roaming framework. The plan thus adds consumer uses to the goal of closing coverage gaps, alongside maintaining connectivity during disasters. The service launch remains contingent on completing the network and beginning domestic operations according to the announced schedule.
Rakuten AST set the end of March 2029 as its target for beginning operations in Japan. That date comes about three years after the expected support, which could reach 148 billion yen, according to Rakuten’s announcement. The timeline gives the project a period to develop the satellite network and prepare the service for the Japanese market, while details of implementation progress remain tied to upcoming stages. In the broader context of investor interest in the sector, EL7 previously covered a rise in space company shares on October 6 after a positive report from Morgan Stanley. On November 9, however, reliable open-source evidence was unavailable to verify the reported gains in Rocket Lab, AST SpaceMobile or SpaceX shares during the session.
The Japanese project comes against an operational backdrop for AST SpaceMobile. Reuters reported that the company acknowledged it would miss its target of having 45 satellites by the end of 2026, and that a slower launch pace had pushed commercial service timelines to 2027. The report said analysts had expected fewer than 20 satellites in orbit by December. Ahead of the third-quarter results, analysts expected a loss of $0.40 per share and revenue of $47.94 million. For the second quarter, they had expected a loss of $0.77 per share and revenue of $31.52 million, indicating a quarter-on-quarter improvement in their estimates. An AST SpaceMobile card appeared with the Reuters report published on November 9, showing a 13.11% gain when the page was captured, while moves in Rocket Lab and SpaceX during the session remained unconfirmed by a reliable open source.