AST SpaceMobile (NASDAQ: ASTS) and Rakuten Group have agreed to establish a joint venture to develop a direct-to-device (D2D) satellite communications network in Japan. The project is expected to receive up to ¥148 bn, approximately $1 bn, in government funding over three years.
The partnership follows the Japanese government’s selection of Rakuten’s proposal under the Japan Low-Earth Orbit Satellite Communications Project (J-LEO), which aims to establish domestically managed satellite infrastructure.
- AST SpaceMobile and Rakuten will establish Rakuten AST, with Rakuten holding 51% of voting rights and AST SpaceMobile owning 49%.
- The joint venture expects up to ¥148 bn in government support over three years, with domestic satellite operations targeted by March 2029.
- AST SpaceMobile reported Q3 2026 revenue of $42.3 mn and maintained its annual revenue forecast of $150-200 mn.
Rakuten AST to develop Japan’s sovereign satellite network
The companies agreed to establish Rakuten AST on November 6, 2026, with initial capital of ¥100mn and headquarters in Tokyo.
Rakuten Group will control 51% of the joint venture, while AST SpaceMobile Japan Holdings II GK, an indirect wholly owned subsidiary of AST SpaceMobile, will hold the remaining 49%.
Ryoji Osaka will serve as chief executive officer. AST SpaceMobile will supply low-Earth orbit satellites compatible with mid-band spectrum. The joint venture will manage satellite procurement, deployment and operations.
The project is expected to receive up to ¥148 bn through the Communications and Information Network Association of Japan, which administers the J-LEO funding program.
Domestic operations are scheduled to begin by the end of March 2029.
Direct-to-device services target nationwide coverage
The planned network will enable ordinary smartphones to connect directly to satellites without specialized hardware.
Services are expected to include mobile broadband, video streaming, social media access and emergency communications.
A central objective is to provide connectivity in areas where terrestrial mobile networks are unavailable or disrupted by natural disasters.
The project also includes emergency roaming arrangements between Japanese mobile operators, allowing users to access satellite connectivity during network outages.
Rakuten Mobile plans to begin testing satellite-to-mobile services in a commercial environment during 2026.
The companies have maintained a strategic relationship since March 2020, when Rakuten invested in AST SpaceMobile.
AST SpaceMobile expands satellite technology beyond smartphones
AST SpaceMobile is also exploring AI-powered satellite applications with technology companies including Google and Meta.
Chief Executive Officer Abel Avellan said the company sees opportunities to extend satellite connectivity beyond smartphones to vehicles, drones, industrial equipment and Internet of Things devices.
Potential applications include AI inference, remote infrastructure monitoring, logistics and autonomous systems. Rakuten Mobile and AST SpaceMobile also intend to explore AI-based spectrum management and edge computing technologies.
The Japanese joint venture may eventually provide services to AST SpaceMobile customers outside Japan, subject to regulatory approvals.
AST SpaceMobile reports Q3 revenue growth
AST SpaceMobile reported third-quarter 2026 revenue of $42.3 mn, compared with $14.7 mn in the same period of 2025.
The company recorded a net loss attributable to common shareholders of approximately $132.4 mn.
| Financial metric | Q3 2026 |
|---|---|
| Revenue | $42.3 mn |
| Revenue in Q3 2025 | $14.7 mn |
| Net loss attributable to common shareholders | $132.4 mn |
| Cash, cash equivalents and restricted cash | ~$3.2 bn |
| Full-year 2026 revenue guidance | $150–200 mn |
AST SpaceMobile reaffirmed its 2026 revenue forecast of $150-200 mn, citing potential upside from recently signed contracts and government-related milestones.
Company President Scott Wisniewski said revenue could approach or exceed $1bn during the first 12 months following the start of commercial service, depending partly on the development of government contracts.
The company also expects gateway equipment sales and software licensing to contribute to future revenue.
ASTS shares gained approximately 9% on November 9, closing at $36.89, as investors reacted to the Rakuten agreement and expectations for commercial satellite services.
The Japan project represents a significant step in AST SpaceMobile’s international expansion, combining government-backed infrastructure funding with a local telecommunications partner and a planned domestic satellite network.
