Rakuten and AST SpaceMobile Establish Rakuten AST Joint Venture to Build Japan’s Sovereign Direct-to-Device Satellite Network
Japan is moving to strengthen its telecommunications resilience through a landmark satellite initiative backed by approximately $1 billion in government funding. Rakuten Group and AST SpaceMobile have established Rakuten AST, a joint venture tasked with deploying a Japanese-flagged low Earth orbit (LEO) satellite constellation capable of delivering broadband connectivity directly to commercially available smartphones.
The initiative represents a significant step toward integrating satellite and terrestrial telecommunications infrastructure, with disaster-resilient connectivity, national communications security, and expanded broadband coverage among its central objectives.
Announced on November 9, 2026, the joint venture was formally agreed upon on November 6, 2026, Japan Standard Time. It brings together Rakuten's telecommunications capabilities and AST SpaceMobile's direct-to-device (D2D) satellite technology to establish a domestically managed non-terrestrial network (NTN) for Japan.
Japan Commits Up to $1 Billion to Support Satellite Deployment
A major catalyst for the initiative is the Japanese government's financial backing.
The Ministry of Internal Affairs and Communications (MIC) selected a joint proposal submitted by Rakuten's preparatory company and Rakuten Mobile under its publicly solicited J-LEO (Japan Low Earth Orbit Satellite Communications Project).
Under the program, Rakuten AST is expected to receive up to 148 billion yen (approximately $1 billion) over roughly three years. The funding will be administered through the Communications and Information Network Association of Japan (CIAJ), the organization established to manage the initiative.
The project will support the deployment and operation of a Japanese-flagged satellite constellation utilizing mid-band spectrum. AST SpaceMobile will supply the satellites, while Rakuten AST will oversee the development of the domestic communications infrastructure.
The companies are targeting the commencement of domestic network operations by March 31, 2029.
Direct Satellite-to-Smartphone Connectivity Without Specialized Hardware
At the core of the initiative is AST SpaceMobile's large-scale LEO satellite architecture, designed to deliver cellular broadband connectivity directly to standard smartphones.
Unlike conventional satellite communication services that often require dedicated terminals, antennas, or specialized hardware, the Rakuten AST network is intended to connect users through commercially available smartphones.
The service is expected to support bandwidth-intensive applications, including video streaming, social media, and other mobile broadband services.
The constellation will also extend connectivity into geographically challenging regions where conventional terrestrial cellular infrastructure is limited or unavailable.
Importantly, the initiative goes beyond filling coverage gaps. Japan intends to establish a more resilient communications architecture capable of maintaining connectivity during natural disasters and other major emergencies.
One of the project's key objectives is to establish an emergency inter-carrier roaming framework among mobile network operators. This would enable subscribers to access satellite-based connectivity during emergencies, helping maintain communications even when conventional terrestrial networks are disrupted.
Building a Sovereign Non-Terrestrial Network
A defining element of Rakuten AST is Japan's ambition to develop a domestically managed and operated satellite communications network.
Through the joint venture, Rakuten and Rakuten Mobile intend to establish an NTN infrastructure that can be managed autonomously within Japan, providing greater operational flexibility and control over critical communications services.
The network will leverage AST SpaceMobile's satellite technology, while ground-based base station infrastructure will enable Japanese telecommunications operators to manage network operations and connectivity.
This architecture reflects a broader strategic shift in telecommunications: satellite networks are increasingly being considered essential complements to terrestrial infrastructure, particularly for countries seeking to strengthen national resilience and economic security.
AST SpaceMobile will supply the satellites powering Japan's sovereign D2D constellation. Beyond serving the Japanese domestic market as a priority, Rakuten AST also plans to collaborate with AST SpaceMobile to make these services available to international customers through AST SpaceMobile's global network, subject to regulatory approvals.
AI-Powered Spectrum Management and Industrial Connectivity
The partnership also extends beyond conventional mobile broadband.
Rakuten Mobile plans to collaborate with AST SpaceMobile on advancing AI edge computing capabilities and developing AI-driven spectrum management technologies.
The companies intend to explore applications that could improve data transmission speeds, optimize spectrum utilization, and support industry-specific connectivity solutions, particularly across the Internet of Things (IoT) ecosystem.
Potential target industries include:
Logistics: Improved connectivity for distributed supply chains and operational infrastructure.
Infrastructure monitoring: Reliable communications for monitoring critical assets and remote installations.
Construction: Connectivity solutions for connected equipment and geographically dispersed operations.
Agriculture: Expanded connectivity for smart farming and remote agricultural monitoring.
These developments could broaden the commercial scope of the partnership beyond traditional telecommunications operators, positioning satellite connectivity as an enabling layer for multiple industrial sectors.
Leadership Perspectives: Strengthening Japan's Communications Infrastructure
Mickey Mikitani, Chairman and CEO of Rakuten Group, described the initiative as a key pillar of Rakuten Mobile's network strategy.
He emphasized the importance of creating an integrated framework covering satellite procurement through network operations, while accelerating technological innovation to strengthen disaster-resilient communications infrastructure and improve Japan's overall telecommunications environment.
Abel Avellan, Founder, Chairman and CEO of AST SpaceMobile, characterized the agreement as a significant milestone for the company and a validation of the growing importance of space-based cellular broadband.
He noted that governments worldwide are increasingly recognizing satellite connectivity as a critical complement to terrestrial wireless infrastructure, particularly in achieving broadband availability wherever people live, work, and travel.
Avellan also highlighted the opportunity to strengthen AST SpaceMobile's global network by utilizing satellite capacity beyond Japan's domestic market.
A Partnership Dating Back to 2020
The Rakuten AST joint venture builds on a strategic relationship between Rakuten and AST SpaceMobile that dates back to March 2020.
As another step toward commercial deployment, Rakuten Mobile plans to begin testing its satellite-to-mobile service in a commercial environment within 2026.
The latest agreement significantly expands that relationship, moving the collaboration toward the establishment of a dedicated satellite constellation and a sovereign domestic communications network.
What This Means for the Global Direct-to-Device Satellite Market
The Rakuten AST agreement carries implications beyond Japan.
With up to $1 billion in government support, a defined deployment timeline, and a dedicated domestic operating structure, the initiative demonstrates how national governments and telecommunications operators are approaching direct-to-device satellite connectivity as part of critical communications infrastructure.
For AST SpaceMobile, the partnership provides an opportunity to expand its international footprint through a dedicated national deployment, while potentially creating additional opportunities to serve customers outside Japan.
For Rakuten, the initiative represents a strategic expansion beyond terrestrial mobile networks into space-based telecommunications, with applications spanning emergency communications, industrial IoT, and nationwide broadband coverage.
The broader significance lies in the convergence of satellite infrastructure, mobile telecommunications, and national economic security. As direct-to-device technologies mature, partnerships between satellite operators and established mobile network operators could become increasingly important in shaping the next generation of global connectivity.
With domestic operations targeted by March 2029, Rakuten AST is positioning Japan to become a significant player in the emerging sovereign satellite-to-smartphone communications market.
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