Rakuten Group is set to become the first Japanese company to build its own domestic satellite communication network using LEO satellites. The tech and mobile giant plans to establish a joint venture with US startup AST SpaceMobile before the end of this year. Together, they will deploy low Earth orbit satellites capable of communicating directly with smartphones across Japan. The move positions Rakuten as a direct domestic challenger to SpaceX’s dominant Starlink service.
Rakuten will create the new company as a subsidiary of its mobile arm, Rakuten Mobile, according to sources familiar with the plan. The partnership involves purchasing multiple AST satellites to build a self-sufficient communication network for Japanese domestic use. AST satellites orbit at several hundred kilometers altitude and deploy enormous antennas spanning roughly 220 square meters. Consequently, they deliver high-speed data connections sufficient for video streaming even in remote mountainous regions without ground-based infrastructure.
Rakuten Mobile plans to launch limited services using AST’s existing LEO satellites as early as 2026. Subsequently, the company intends to transition toward operating its own dedicated satellite communications network over time. Furthermore, Rakuten is considering eventually opening disaster-emergency services to smartphone users outside its own subscriber ecosystem. That step would significantly broaden the network’s social value beyond commercial competition.
The initiative also carries strong economic security implications for Japan’s government and ruling coalition. Officials have expressed growing concern over Japan’s heavy dependence on foreign satellite communication providers for critical infrastructure. In response, the Internal Affairs and Communications Ministry is currently offering subsidies of up to 150 billion yen to support domestically operated satellite networks. Rakuten is actively pursuing that government funding to support its buildout.
Meanwhile, Japanese carriers KDDI, NTT Docomo, and SoftBank already offer services through Starlink partnerships, underlining the sector’s rapid growth. Nevertheless, Rakuten’s approach differs fundamentally by aiming to own and operate its satellite infrastructure independently. Going forward, the project could set a precedent for Japanese technology sovereignty in an increasingly competitive global space communications market.
