Rakuten and AST SpaceMobile announced in Tokyo, Japan, on November 9 that they have agreed to create a joint venture to build a satellite network connecting directly to ordinary smartphones. The proposed Rakuten AST company is expected to receive up to ¥148 billion, about $1 billion, in Japanese government support over roughly three years after establishment, with domestic operations targeted by the end of March 2029.
The joint announcement says the partners reached their agreement on November 6, Japan Standard Time, and plan to establish the company during November. The company overview identifies establishment as planned, so the agreement is not confirmation that the new legal entity or network is already operating.
Rakuten Group would hold 51% of the voting rights and AST SpaceMobile Japan Holdings II, a wholly owned indirect Japanese subsidiary of AST SpaceMobile, would hold 49%. The venture’s stated legal capital is ¥100 million. It would be based in Tokyo’s Setagaya ward, with responsibility for satellite procurement and the operation and management of satellite connectivity.
The companies said Japan’s Ministry of Internal Affairs and Communications selected a proposal from Rakuten’s preparatory company and Rakuten Mobile under the J-LEO low Earth orbit satellite communications project. Support is expected through the Communications and Information Network Association of Japan after Rakuten AST is established. The ¥148 billion is an upper limit on expected support over time, not cash already received or the venture’s initial paid-in capital.
AST SpaceMobile would supply the satellites for a Japanese-operated direct-to-device network using mid-band spectrum. The intended service would connect commercially available smartphones without specialized equipment. The partners describe satellite coverage as a complement to ground-based mobile networks, particularly for places with limited terrestrial service and for maintaining communications during disasters.
That matters for businesses whose work depends on connections beyond normal coverage, including logistics, infrastructure monitoring, construction and agriculture. The partners also aim to create a framework for emergency roaming between mobile operators. Those are intended uses and resilience goals, not proof that a completed Japanese network can already provide uninterrupted service in a disaster.
The end-March 2029 target is separate from Rakuten Mobile’s existing plan to begin commercial-environment testing of its satellite-to-mobile service within 2026 under its earlier AST partnership. Testing in a commercial environment is not the same as a nationwide commercial launch. The new announcement does not disclose how many satellites the joint venture will procure or give a detailed launch schedule.
Rakuten Mobile also plans research and development involving AI edge computing and AI-driven spectrum management to support faster communications and industry-specific services. The release describes work to be advanced, not a completed AI spectrum-management system. Potential use of capacity outside Japan would be subject to regulatory approval.
The remaining questions include when the venture is formally established, how the support is disbursed, the satellite and launch timetable, and the final service terms for operators and phone users. Customer pricing, detailed coverage and real-world network performance are not established by this announcement. For now, the partners have set out an ownership structure, a funding ceiling and a service target, rather than announcing a network already in public use.
JBizNews Desk | Tokyo, Japan
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