AST SpaceMobile (ASTS) and Rakuten launch $1 bn satellite network project in Japan
AST SpaceMobile (ASTS) and Rakuten Group formed a joint venture, Rakuten AST, to develop a satellite network in Japan with up to $1bn in government funding. ASTS will supply satellites, while Rakuten holds 51% control. ASTS reported Q3 2026 revenue of $42.3mn and maintained its annual forecast of $150-200mn. The project aims for nationwide coverage by March 2029, with services including mobile broadband and emergency communications.
How this was made
The 30-second read
Why it matters
The partnership provides a sizable, government‑backed revenue pipeline for both companies and could catalyze broader adoption of satellite‑based mobile services.
Market read
The deal creates a new revenue stream, supports satellite‑tech sector growth, and has already moved ASTS shares sharply.
What to watch
High capital expenditures and competition from other LEO constellations may pressure margins.
Background
AST SpaceMobile and Rakuten Group form a 49/51 joint venture to build Japan's first domestically managed direct‑to‑device satellite network, funded by up to ¥148 bn over three years.
Ticker impact
AST SpaceMobile announced a joint venture with Rakuten, securing up to $1 bn Japanese government funding and its shares jumped ~9% on the news.
likely upward pressure as investors price in the government‑backed contract and growth potential.
The deal is newly disclosed, includes sizable funding, and already moved the stock 9% intraday.
Market effects
Boosts the satellite communications and space‑tech sector, highlighting demand for direct‑to‑device services.
Strengthens Japan's telecom infrastructure and may spur further government‑backed satellite projects.
Sets a precedent for sovereign satellite networks, potentially influencing global satellite‑service providers.
Counterpoint
Regulatory approvals or technical challenges could delay commercial rollout, limiting near‑term upside.
Key entities
- CompanyAST SpaceMobile
U.S. satellite communications firm launching the JV.
- CompanyRakuten Group
Japanese internet and mobile services conglomerate, majority owner of the JV.
- GovernmentJapanese Government
Provides up to ¥148 bn in funding for the satellite network.
