What's Happening?
Rakuten USA, Inc., a division of Rakuten Group, Inc., is actively involved in a strategic partnership with AST SpaceMobile to develop direct-to-satellite communications in Japan. This collaboration aims to establish a direct-to-device communications network
using low Earth orbit (LEO) satellites, with commercial testing planned before the end of 2026. The joint venture, named Rakuten AST, Inc., was established on November 6, 2026, and is tasked with deploying and managing satellites compatible with mid-band spectrum to commence domestic operations by the end of March 2029. The Ministry of Internal Affairs and Communications (MIC) in Japan has selected this joint proposal for the 'J-LEO: Japan Low Earth Orbit Satellite Communications Project,' providing significant financial support of up to 148 billion yen (approximately 1 billion USD) over three years. This initiative is designed to enhance Japan's communications infrastructure, particularly for disaster resilience and economic security, by enabling direct satellite-to-smartphone connectivity without specialized equipment.
Why It's Important?
This partnership is crucial for advancing satellite communication technology and its practical applications. For the U.S. technology and telecommunications sectors, it demonstrates the growing global demand for robust, resilient communication networks, especially in disaster-prone regions. AST SpaceMobile, a key U.S. player in this venture, stands to gain significant market validation and operational experience from this large-scale deployment. The project's focus on direct-to-smartphone connectivity using LEO satellites represents a significant leap in mobile communication, potentially influencing future standards and deployments worldwide. Furthermore, the integration of AI edge computing and AI-driven spectrum management technology by Rakuten Mobile and AST SpaceMobile could lead to innovations that benefit the broader telecommunications industry, including enhanced data speeds and new industry-specific solutions for sectors like logistics and agriculture. This collaboration also highlights the increasing importance of international partnerships in developing advanced communication infrastructure.
What's Next?
The immediate next steps involve the formal establishment of Rakuten AST, Inc., and the commencement of satellite procurement and operational planning. Commercial-environment testing of the satellite-to-mobile service is slated to begin within 2026, building on the strategic partnership established in March 2020. The joint venture will work towards deploying and managing satellites to establish a fully operational satellite communications network in Japan by the end of March 2029. Beyond the Japanese domestic market, Rakuten AST plans to collaborate with AST SpaceMobile to offer these services globally, subject to regulatory approvals. Additionally, Rakuten Mobile and AST SpaceMobile will continue to advance AI edge computing and AI-driven spectrum management technologies, exploring their application for higher-speed data communications and expanding solution offerings to various industries beyond traditional telecommunications carriers.
Beyond the Headlines
This initiative extends beyond merely providing connectivity; it addresses critical national security and economic resilience concerns. By establishing a sovereign direct-to-device constellation, Japan aims to create a communications infrastructure that remains operational even during natural disasters, ensuring uninterrupted connectivity and strengthening economic security. This model could serve as a blueprint for other nations looking to bolster their communication resilience against unforeseen events. The project also underscores a broader trend of integrating space-based solutions into everyday mobile communication, potentially democratizing access to broadband in remote or underserved areas globally. The development of AI-driven spectrum management and edge computing in this context could also lead to more efficient and adaptable communication networks, pushing the boundaries of what's possible in mobile technology and fostering innovation in related fields like IoT and smart infrastructure.
