AST SpaceMobile (ASTS) shares jumped 2% overnight late Wednesday after a subcommittee of Japan's Ministry of Internal Affairs and Communications recommended allowing low-Earth-orbit satellites to connect directly to smartphones via Rakuten's 700MHz band. The regulatory recommendation enables Rakuten to begin satellite direct communication services by the end of the year without relying on SpaceX's Starlink system, which uses the 2GHz band not allocated to Rakuten in Japan. The move positions Rakuten and ASTS to compete with larger Japanese carriers KDDI, NTT Docomo, and SoftBank, which already launched Starlink-backed direct-to-cell services last year and in 2026.
Japan Subcommittee Recommends 700MHz Satellite Approval for Rakuten
A subcommittee of Japan's Ministry of Internal Affairs and Communications recommended allowing direct communication between low-Earth-orbit satellites and ordinary smartphones via the 700MHz band, according to Nikkei. Rakuten already uses the 700MHz band for mobile communications between smartphones and ground-based base stations. Japan is expected to revise related ministerial ordinances in September, including rules requiring coordination to avoid interference with other operators. Rakuten is turning to AST SpaceMobile since it has not been allocated the 2GHz band used by Starlink.
Rakuten and ASTS Plan Joint Venture Formation This Year
Rakuten CEO Hiroshi Mikitani said the company will form a satellite business joint venture with AST SpaceMobile this year, with both sides expected to hold equal stakes and Rakuten leading management. Rakuten Mobile plans to roll out limited services using AST satellites in 2026, with nationwide coverage targeted in fiscal 2027. Mikitani said the investment "won't be substantial" and "won't put too much of a financial burden" on Rakuten. The AST-backed service is expected to support connectivity in remote areas, mountainous regions, and disaster zones where ground-based stations are limited or unavailable. The company is also considering opening the service to non-Rakuten users during emergencies.
Japan is also nearing a decision on its J-LEO satellite communications initiative, often described as the country's "Japanese Starlink" project. The program carries up to 150 billion yen, or $1 billion, in support for a domestically controlled low-Earth orbit network. Reported contenders include a KDDI-SpaceX group and a Rakuten Mobile-AST SpaceMobile alliance. The winning operator must provide nationwide direct-to-cell coverage by March 2029, support video calling across much of Japan and maintain communications during emergencies.
BlueBird 11, 12, 13 Satellites Targeted for August Launch
AST's BlueBird satellites 11, 12 and 13 are targeted to launch from Cape Canaveral in the first half of August after last week's launch of BlueBirds 8, 9 and 10 aboard a Falcon 9 rocket. The company said that its next-generation BlueBird satellites are expected to deliver nearly double the peak data speeds of its initial Block 1 satellites, which recently reached 98.9 Mbps directly to standard smartphones.
Retail Sentiment Turns Bearish on ASTS Stock
On Stocktwits, retail sentiment for ASTS was 'bearish' amid a 6% rise in 24-hour message volumes. ASTS stock slid 7% on Wednesday, on track to log its fourth straight week of losses and its worst month in over two years. ASTS stock has declined 38% over the past year.
FAQ
What did Japan approve for Rakuten's satellite service?
A subcommittee of Japan's Ministry of Internal Affairs and Communications recommended allowing low-Earth-orbit satellites to connect directly to smartphones via Rakuten's 700MHz band. Japan is expected to revise related ministerial ordinances in September.
When will Rakuten launch satellite services with AST SpaceMobile?
Rakuten plans to roll out limited services using AST satellites in 2026, with nationwide coverage targeted in fiscal 2027. Rakuten and ASTS plan to form a joint venture this year with equal stakes.
When are AST SpaceMobile's next satellites scheduled to launch?
AST's BlueBird satellites 11, 12 and 13 are targeted to launch from Cape Canaveral in the first half of August. BlueBirds 8, 9 and 10 launched last week aboard a Falcon 9 rocket.
