Rakuten and AST SpaceMobile Form New Company, Backed by Up to ¥148 Billion Subsidy, to Deliver Direct-to-Satellite Communications by March 2029
Rakuten Group and AST SpaceMobile will form Rakuten AST, a new company to build a direct-to-satellite communications network by March 2029. The project, backed by up to ¥148 billion in subsidies, aims to provide high-speed internet to smartphones in remote areas and during emergencies. Rakuten Mobile will prioritize domestic service for its customers, with potential expansion to other carriers and overseas markets.
How this was made
The 30-second read
Why it matters
The joint venture creates a new revenue stream for both companies and positions Japan as a player in the emerging satellite broadband market.
Market read
The subsidy‑backed joint venture could reshape Japan's telecom landscape and influence global satellite broadband competition.
What to watch
Regulatory approvals, spectrum allocation challenges, and potential competition from other LEO constellations.
Background
Japan's Ministry of Internal Affairs and Communications is funding LEO satellite infrastructure to ensure domestic autonomy. Rakuten Mobile seeks to extend coverage to remote areas, while AST provides the satellite technology.
Ticker impact
AST SpaceMobile partnered with Rakuten to create a joint satellite communications company backed by a ¥148 billion subsidy.
likely upside as the market values the new revenue pipeline and reduced deployment risk
AST gains a large Japanese carrier and substantial subsidy, enhancing its commercial rollout prospects.
Market effects
Could accelerate satellite‑based broadband adoption, pressuring traditional telecoms and boosting the satellite services sector.
Strengthens Japan's telecom infrastructure and may spur similar government‑backed projects in Asia.
Adds a new competitor to the global LEO satellite market, influencing investors in SpaceX, OneWeb and related suppliers.
Counterpoint
Execution risk and high capital costs could delay profitability, weighing on stock valuations.
Key entities
- companyRakuten Group
Japanese e‑commerce and mobile operator, ticker RAKU.
- companyAST SpaceMobile
U.S. satellite communications firm, ticker ASTS.
- governmentJapanese Ministry of Internal Affairs and Communications
Provides up to ¥148 billion subsidy for the LEO project.
