TOKYO — Japanese technology conglomerate Rakuten Group and satellite direct-to-device provider AST SpaceMobile announced an agreement on Tuesday, Nov. 10, 2026, to establish a joint venture named Rakuten AST.
Tasked with deploying a sovereign low Earth orbit (LEO) satellite communications constellation across Japan, the joint venture will receive up to $1 billion in institutional funding over three years under the Japanese government’s J-LEO initiative to deliver cellular broadband directly to standard, off-the-shelf smartphones.
J-LEO Initiative and Bilateral Program History
The award follows the formal selection of a joint proposal from Rakuten Mobile and Rakuten’s preparatory company by Japan’s Ministry of Internal Affairs and Communications (MIC) under the publicly solicited J-LEO (Japan Low Earth Orbit Satellite Communications Project). Capital will be disbursed through the Communications and Information Network Association of Japan (CIAJ), the designated fund administrator.
The initiative builds on programmatic ties established when the U.S. and Japan designated AST SpaceMobile and Rakuten infrastructure under a bilateral technology accord, expanding upon earlier field trials after AST SpaceMobile commenced direct-to-cellular operations in Japan.
Mid-Band Direct-to-Device Architecture and Ground Base Stations
Under the joint venture structure, AST SpaceMobile will manufacture and supply the large-aperture satellites to power the sovereign constellation. The space network will operate across commercial mid-band spectrum allocations to support high-throughput services—including video streaming, voice calls, and social media platforms—without requiring modifications or auxiliary hardware on consumer mobile handsets.
Ground-based base station equipment will be integrated into domestic Japanese infrastructure, granting local network operators autonomous control over orbital traffic routing. The technical architecture also incorporates artificial intelligence (AI) edge computing for automated spectrum management, higher data speeds, Internet of Things (IoT) connectivity, and emergency inter-carrier roaming during natural disasters.
Operational Rollout and Commercial Flight Milestones
“This project is a key pillar of Rakuten Mobile’s network strategy,” said Mickey Mikitani, Chairman and CEO of Rakuten Group. “By building an integrated framework spanning satellite procurement through operations and accelerating technological innovation, we will contribute to the development of disaster-resilient communications infrastructure and the improvement of Japan’s communications environment.”
Abel Avellan, Founder, Chairman and CEO of AST SpaceMobile, noted that the sovereign initiative validates space-based cellular broadband as an essential complement to terrestrial wireless infrastructure.
Under their strategic partnership initiated in March 2020, Rakuten Mobile plans to initiate commercial-environment testing within 2026, advancing toward full domestic operational service across Japan by the end of March 2029.
