Rakuten and AST SpaceMobile Team Up to Build Satellite-to-Phone Network in Japan

Rakuten and AST SpaceMobile are setting up a joint venture to build a satellite network that connects directly to ordinary smartphones in Japan, with domestic operations targeted by the end of March 2029.

The venture, Rakuten AST, is expected to receive up to 148 billion yen, approximately $1 billion, in Japanese government support over about three years. The funding is part of the country's J-LEO satellite communications project and is to be received after the company is established.

Rakuten will hold 51% of the venture's voting rights, with an AST SpaceMobile subsidiary holding 49%. AST SpaceMobile will supply the satellites, while the venture will procure and manage satellite connectivity.

The planned network is intended to extend mobile broadband into areas with weak ground coverage and keep communications available during disasters. Its design includes emergency roaming among Japanese mobile operators.

The companies said the service is meant to work with commercially available smartphones without special equipment. The rollout remains a future deployment, not a service available nationwide today.