Rakuten and AST SpaceMobile to establish new satellite communications company; Mikitani (三木谷氏) calls it “the Apollo program for the mobile industry”

Rakuten Group and US-based AST SpaceMobile announced that they would jointly establish a new company, Rakuten AST Co., Ltd. The headquarters will be located in Setagaya, Tokyo, and the company will have ¥100 million in capital. Rakuten Group will hold 51% and AST SpaceMobile's Japanese subsidiary 49%. The business is expected to cover satellite procurement and the operation and management of satellite communications.

The project was selected for the Ministry of Internal Affairs and Communications' public solicitation for the Low-Earth-Orbit Satellite Infrastructure Development Project for Securing Autonomy, known as J-LEO. The company is scheduled to receive up to approximately ¥148 billion in grants over about 3 years through the Communications and Information Network Association of Japan. The project period runs through the end of March 2029, with operations in Japan targeted to begin by then.

The new company is separate from Rakuten Mobile's “Strongest Satellite Service,” and the satellites and frequency bands used will also differ. Under the J-LEO project, the plan is to prepare approximately 40 to 50 Japanese-registered satellites compatible with the 1.7 GHz mid-band. Rakuten AST will handle everything from satellite procurement through operations, which is a distinguishing feature of the project.

The move is reportedly intended to secure Japan's satellite communications infrastructure autonomously, with the aim of building a communications network capable of responding to disasters and changes in the international environment. Attention is focused on the clarification of the deadline and responsible entity, with a future in which coverage reaches mountainous areas and remote islands in view.