Rakuten and AST will hold equal stakes, with Rakuten leading management and rollout starting in late 2026.
- Rakuten revealed plans for a satellite JV in Japan with AST SpaceMobile.
- The JV will buy and operate satellites for direct-to-mobile service, challenging SpaceX Starlink-backed rivals in Japan.
- Nationwide Japan coverage is targeted for fiscal 2027, with Rakuten also considering a future global rollout.
Shares of AST SpaceMobile (ASTS) jumped 2% overnight heading into Wednesday after Rakuten revealed plans for a Japan JV that will buy and operate satellites for direct-to-mobile communications, setting up a challenge to rival carriers using SpaceX’s Starlink network.
ASTS stock slipped 0.4% on Tuesday, logging its third straight session of losses. Shares are also poised to end June at their worst month in over two years.
Rakuten, ASTS Plan Japan Satellite JV
Rakuten Group CEO Hiroshi Mikitani said that the company will form a satellite business joint venture with AST SpaceMobile this year. The partners will hold equal stakes, while Rakuten will lead the management, Nikkei noted. “It's extremely critical to start a service [operated by a company] backed largely by Japanese capital,” Mikitani said.
The JV would put Rakuten directly against Japan’s larger wireless rivals, which already offer direct-to-cell services using SpaceX’s Starlink satellite network. KDDI launched the service last year, with SoftBank and NTT Docomo following in 2026.
Rakuten’s satellite-to-smartphone service is expected to roll out in phases starting at the end of 2026, with nationwide coverage targeted in fiscal 2027. Mikitani also said that Rakuten is considering an eventual global rollout through the new company. He did not disclose the investment size, but said it “won’t be substantial” and “won’t put too much of a financial burden” on Rakuten.
Japan’s ‘Starlink’ Race Nears Decision
The timing is notable as Japan is expected to select a winner by this month for its J-LEO satellite communications initiative, often called the country’s “Japanese Starlink” project. The leading contenders are said to be a KDDI-SpaceX consortium and a Rakuten Mobile-AST SpaceMobile alliance. The project carries a 150 billion yen, or roughly $1 billion, budget and aims to build a domestically controlled low-Earth orbit network capable of connecting ordinary smartphones, including during disasters.
The winning operator must provide nationwide direct-to-cell coverage by March 2029, support video calling across much of the country and maintain communications during emergencies. Mikitani said Rakuten has applied for the subsidized project.
ASTS Sets Next BlueBird Launch
On Tuesday, AST said BlueBird satellites 11, 12 and 13 are targeted to launch from Cape Canaveral in the first half of August. The announcement came after last week’s successful launch of BlueBirds 8, 9 and 10 aboard a Falcon 9 rocket.
The next-gen satellites feature commercial communications arrays of about 2,400 square feet and are expected to deliver nearly double the peak data speeds of AST’s initial Block 1 satellites, which recently hit 98.9 Mbps directly to standard smartphones. AST SpaceMobile said BlueBird satellites through number 37 are already in production and assembly.
How Do Retail Traders Feel About ASTS?
On Stocktwits, retail sentiment for ASTS was ‘bearish’ amid ‘low’ message volume.
One user questioned, “Why would rakuten announce that they are starting a satelite business with asts in Japan if they didnt get this contract?”
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Another user said, “Hard to believe shorts aren't covering with the J-Leo announcement on the verge. Both Rakuten's sale of shares and the JV indicate that they are positioning for finalizing the contract.”
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ASTS stock has risen 45% over the past year.
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