Rakuten, AST SpaceMobile Establish JV for Japan Satellite Communications Network
Rakuten Group and AST SpaceMobile formed a joint venture, Rakuten AST, to build a satellite communications network in Japan. The project, supported by up to 148 billion yen in funding, aims to provide direct-to-device connectivity for smartphones, enhancing disaster resilience. Rakuten AST plans to commence operations by March 2029, leveraging AST SpaceMobile's satellites for high-speed internet access.
How this was made
The 30-second read
Why it matters
The partnership creates a new revenue stream for both companies and positions them in the emerging non‑terrestrial network market.
Market read
First‑report of a multi‑billion‑dollar JV that could reshape Japan's satellite communications landscape.
What to watch
Potential competition from other LEO providers and the need for extensive ground infrastructure.
Background
The article reports the formation of a joint venture between Rakuten Group and AST SpaceMobile to build a direct‑to‑device LEO satellite network in Japan, funded by a government program.
Ticker impact
AST SpaceMobile secured a partnership with Rakuten to supply satellites for Japan's J‑LEO project, valued at up to 148 billion yen.
likely upward pressure from the new revenue contract and increased visibility in Japan.
First disclosure of a multi‑billion‑dollar contract that expands AST's addressable market.
Market effects
Strengthens the satellite communications and non‑terrestrial network sector, encouraging further investment.
Boosts Japan's tech and telecom outlook, especially for disaster‑resilient infrastructure.
Highlights growing demand for direct‑to‑device LEO services worldwide.
Counterpoint
The JV may face regulatory delays and technical challenges that could postpone revenue.
Key entities
- CompanyRakuten Group
Japanese e‑commerce and telecom conglomerate launching the JV.
- CompanyAST SpaceMobile
U.S. satellite operator providing the LEO platform.
