The Yomiuri Shimbun

Rakuten Group Inc. is set to become the first Japanese company to launch its own communication service using low Earth orbit $(LEO)$ satellites in competition with U.S.-based SpaceX's Starlink satellite communication system, it has been learned.

Rakuten will establish a joint venture with a U.S. startup to deploy LEO satellites capable of communicating directly with smartphones in Japan, thereby building a satellite communication network that does not rely on foreign providers.

Rakuten will establish a new company by the end of this year as a subsidiary of Rakuten Mobile Inc., its mobile phone business, in partnership with U.S. startup AST SpaceMobile, according to sources. It plans to purchase multiple AST satellites to establish a satellite communication network for domestic use.

Rakuten Mobile plans to launch limited communication services using AST satellites in 2026, and subsequently utilize its own satellite communications network. In the future, the company is considering opening the service to smartphone users outside the Rakuten ecosystem in case of disasters.

AST satellites orbit in space at an altitude of several hundred kilometers and deploy a roughly 220-square-meter antenna, enabling high-speed data communication that allows users to stream videos and other content.

LEO satellites are distinguished by their ability to provide high-speed communication even in mountainous areas where base stations are not available. Starlink holds an overwhelming global market share in this sector. Within Japan, KDDI Corp., NTT Docomo Inc. and SoftBank Corp. have also launched communication services using Starlink.

From an economic security perspective, there are strong concerns within the government and ruling coalition regarding the use of foreign communication services. The Internal Affairs and Communications Ministry is soliciting proposals for a project that will provide up to 150 billion yen in subsidies to support Japan's own satellite communication network. Rakuten is also hoping to secure this support.

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This article is from The Yomiuri Shimbun. Neither Dow Jones Newswires, MarketWatch, Barron's nor The Wall Street Journal were involved in the creation of this content.

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June 24, 2026 08:16 ET (12:16 GMT)

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