Rakuten Group and U.S.-based AST SpaceMobile announced on November 9, 2026, that they will establish a new company, Rakuten AST, to manage and operate in Japan a network in which smartphones communicate directly with satellites. The company will build "J-LEO," a low-Earth-orbit satellite communications network that Japanese carriers can operate autonomously, and aims to begin operations by the end of March 2029. Separately, the commercial-environment communication tests that the two companies plan to start within 2026 belong to a different project under their existing strategic partnership. The latest announcement concerns a plan to build a new satellite network managed and operated in Japan, and the terms of use for the tests starting this year do not automatically apply to it.
Building a Japan-led satellite network with up to ¥148 billion in support
Rakuten Group and AST SpaceMobile agreed on November 6 to set up the new company, which is scheduled to be established in November. It will have capital of ¥100 million, with voting rights split 51% to Rakuten Group and 49% to AST SpaceMobile's Japanese subsidiary. Ryoji Osaka is expected to serve as chief executive officer. By holding a majority of the voting rights, Rakuten aims to create a Japan-led operating structure.
The new company will handle the "Low-Earth-Orbit Satellite Infrastructure Development Project for Ensuring Autonomy," known as "J-LEO." Rakuten Group aims to improve communications in areas beyond the reach of mobile signals, such as mountainous regions and remote islands, and to build a system that can maintain communications during emergencies such as disasters. By enabling the satellite network to be managed and operated in Japan, the company hopes to strengthen the resilience of communications infrastructure and bolster economic security. According to Rakuten Mobile's announcement, the project is expected to receive up to ¥148 billion in support over about three years through the Communications and Information Network Association of Japan (CIAJ), with funds to be received after the new company is established.
The satellites will use AST SpaceMobile's technology, including satellites equipped with large antennas. Base station functions will be placed on the ground-equipment side. Rakuten explains that this architecture allows Japanese carriers to manage and operate the network flexibly and autonomously. In other words, the plan is to use satellites as communications infrastructure while making network management and operational decisions in Japan. Services for Japan will be the top priority for satellite use, though the companies are also considering offering capacity to overseas carriers during periods when the satellites are not over Japan.
The 2026 tests and J-LEO are separate projects
Rakuten Group and AST SpaceMobile signed a strategic partnership in March 2020. The commercial-environment tests planned to begin within 2026 are proceeding under that existing partnership and are positioned as separate from the newly announced J-LEO. The tests planned for this year are also trials in a commercial environment, not the launch of a commercial service that general users can connect to at all times.
The two projects differ not only in their schedules but also in the frequency bands they use and the countries where their satellites are registered. Based on Rakuten's official announcement and Impress Watch's coverage of the press conference, the plans disclosed as of November 9, 2026, compare as follows.
| Item | J-LEO project | Satellite service under the existing partnership |
|---|---|---|
| Purpose | Build a satellite network managed and operated in Japan | Satellite communications service under the existing strategic partnership |
| Start timing | Target of starting domestic operations by the end of March 2029 | Commercial-environment tests scheduled to begin within 2026 |
| Frequency band | 1.7GHz band | 700MHz band |
| Satellite registration | Japan | United States |
| Pricing | To be determined | Expected to be free for Rakuten Mobile users for the time being |
Both are future plans, and no service for general users has started yet. According to Impress Watch, the commercial-environment tests beginning in 2026 will be conducted with limited hours of connectivity. The outlook that Rakuten Mobile users can use the service free for the time being applies to the service under the existing partnership; it has not been decided that J-LEO will be free of charge.
A plan for the scale of the satellite network has also been presented at this stage. Impress Watch reported, citing the press conference, that J-LEO is planned to use 40 to 50 satellites in the end. Because those satellites must be deployed and a system for managing and operating them in Japan must be put in place, satellite deployment and ground-facility development will be key to starting operations by the end of March 2029.
Why domestic control matters, and the challenges ahead
J-LEO is distinctive in aiming for a system that prioritizes communications for Japan and allows operational decisions to be made domestically. During disasters in particular, flexible operation, such as concentrating capacity on heavily affected areas, is important. According to Impress Watch's coverage of the press conference, Rakuten Group's Hiroshi Mikitani explained that changing the direction of the satellite antennas during a disaster could concentrate communications on specific areas. The company is also reportedly considering opening the network to other carriers in emergencies.
If realized, this concept would add options for securing communications through satellites even when terrestrial mobile base stations are damaged. However, building a system that can be managed and operated in Japan is a separate matter from securing the communications capacity needed during a disaster. Which areas could be allocated how much capacity would depend on satellite deployment and network operating conditions. How far the policy of prioritizing domestic use will help secure communications in disasters will need to be assessed once the satellite network is further along.
It is also necessary to distinguish performance already achieved from design performance targeted by future satellites. According to Rakuten's announcement, AST SpaceMobile's early satellite, "BlueBird Block 1," recorded a peak downlink speed of 98.9Mbps. Next-generation satellites, meanwhile, will carry an antenna array of about 223 square meters and are designed to roughly double the peak speed. However, 98.9Mbps is a result obtained in tests to date, while the next-generation speed is a design target. Neither represents a speed guaranteed to general users of the J-LEO domestic service.
The establishment of the new company is an important step toward building a satellite network that can be managed and operated in Japan. However, what has been made clear so far is the business structure and the network development plan; actual service quality and terms of use have not yet been determined. Going forward, the focus will be on how far connectable hours expand as satellite deployment progresses, what actual speeds and stability will be, and how pricing and eligible users will be set. The practical value of J-LEO will be judged by how far the concept of autonomous domestic operation leads to closing coverage gaps and securing communications during disasters.