Rakuten Group and AST SpaceMobile (ASTS) revealed plans to form a satellite business joint venture in Japan this year, with equal stakes and Rakuten-led management. The JV will purchase and operate satellites to provide direct-to-mobile communications service, with phased rollout starting at the end of 2026 and nationwide coverage targeted in fiscal 2027. The announcement positions Rakuten against Japan's larger wireless rivals KDDI, SoftBank, and NTT Docomo, which offer or plan to offer direct-to-cell services using SpaceX's Starlink satellite network. Rakuten Group CEO Hiroshi Mikitani stated the initiative is "extremely critical" for establishing a service backed largely by Japanese capital. ASTS stock jumped 2% overnight following the announcement.
Rakuten and AST SpaceMobile Announce Japan Satellite Joint Venture
Rakuten Group CEO Hiroshi Mikitani said the company will form a satellite business joint venture with AST SpaceMobile this year. The partners will hold equal stakes, while Rakuten will lead the management, according to Nikkei. "It's extremely critical to start a service [operated by a company] backed largely by Japanese capital," Mikitani said.
Rakuten's satellite-to-smartphone service is expected to roll out in phases starting at the end of 2026, with nationwide coverage targeted in fiscal 2027. Mikitani also said Rakuten is considering an eventual global rollout through the new company. He did not disclose the investment size, but said it "won't be substantial" and "won't put too much of a financial burden" on Rakuten.
Japan's Satellite Market Features SpaceX-Backed Competitors
The JV would put Rakuten directly against Japan's larger wireless rivals, which already offer direct-to-cell services using SpaceX's Starlink satellite network. KDDI launched the service last year, with SoftBank and NTT Docomo following in 2026.
Japan Expected to Select J-LEO Project Winner This Month
Japan is expected to select a winner by this month for its J-LEO satellite communications initiative, often called the country's "Japanese Starlink" project. The leading contenders are said to be a KDDI-SpaceX consortium and a Rakuten Mobile-AST SpaceMobile alliance. The project carries a 150 billion yen, or roughly $1 billion, budget and aims to build a domestically controlled low-Earth orbit network capable of connecting ordinary smartphones, including during disasters.
The winning operator must provide nationwide direct-to-cell coverage by March 2029, support video calling across much of the country and maintain communications during emergencies. Mikitani said Rakuten has applied for the subsidized project.
AST SpaceMobile Schedules BlueBird Satellites 11-13 Launch for August
On Tuesday, AST said BlueBird satellites 11, 12 and 13 are targeted to launch from Cape Canaveral in the first half of August. The announcement came after last week's successful launch of BlueBirds 8, 9 and 10 aboard a Falcon 9 rocket.
The next-gen satellites feature commercial communications arrays of about 2,400 square feet and are expected to deliver nearly double the peak data speeds of AST's initial Block 1 satellites, which recently hit 98.9 Mbps directly to standard smartphones. AST SpaceMobile said BlueBird satellites through number 37 are already in production and assembly.
FAQ
What did Rakuten and AST SpaceMobile announce for Japan?
Rakuten Group and AST SpaceMobile announced plans to form a satellite business joint venture in Japan this year, with equal stakes and Rakuten-led management. The JV will purchase and operate satellites to provide direct-to-mobile communications service, with phased rollout starting at the end of 2026 and nationwide coverage targeted in fiscal 2027.
Why is Rakuten forming a satellite joint venture with AST SpaceMobile?
Rakuten Group CEO Hiroshi Mikitani stated the initiative is "extremely critical" for establishing a service backed largely by Japanese capital. The JV positions Rakuten to compete against Japan's larger wireless rivals KDDI, SoftBank, and NTT Docomo, which offer or plan to offer direct-to-cell services using SpaceX's Starlink satellite network.
When is Japan expected to select the J-LEO project winner?
Japan is expected to select a winner by this month for its J-LEO satellite communications initiative. The winning operator must provide nationwide direct-to-cell coverage by March 2029, support video calling across much of the country, and maintain communications during emergencies.
