Companies are beginning to enter Japan's market for telecommunication services utilizing low Earth orbit $(LEO)$ satellites, as they aim to compete with the currently dominant Starlink service provided by the U.S. company SpaceX. Rakuten Group Inc. and U.S.-based Amazon.com Inc. plan to offer such services in the near future.

If intensifying competition improves service quality, these services may see more use in times of disaster, among other situations.

Rakuten has partnered with U.S. startup AST SpaceMobile Inc. to launch a satellite-to-smartphone service in Japan by the end of the year. Since the smartphones will communicate directly with satellites, no special equipment -- such as dedicated antennas on the ground -- is required. AST plans to have 45 LEO satellites in orbit by early 2027, potentially scaling up to 90 depending on demand.

AST satellites are equipped with massive antennas measuring about 220 square meters -- close to the size of a tennis court. While conventional LEO satellite communications are primarily limited to messaging, AST's satellites will also allow customers to make video calls and stream video, according to Rakuten.

"Our (satellite) service will offer high-speed, high-capacity communication via mobile phone, which will give us a huge competitive advantage," said Rakuten CEO Hiroshi Mikitani at an event held Aug. 5.

Amazon plans to launch up to about 3,000 satellites. It also aims to launch services utilizing LEO satellites in Japan as early as this fiscal year and provide telecommunication services to companies and local governments in cooperation with firms such as NTT Docomo Inc. France-based Eutelsat SA has provided similar services since 2025, having teamed up with SoftBank Corp.

Use in disasters

LEO satellite telecommunications have spread rapidly since around 2020, mainly driven by improvements in satellite technology. These satellites enable communications even in areas that are typically out of range, such as mountainous regions and the open ocean. They can also be utilized for purposes such as monitoring bears in the mountains and checking river flow rates.

When a massive earthquake hit Kumamoto Prefecture in July, NTT Docomo and other telecommunication companies used Starlink to supplement the functions of damaged base stations, restoring the communications network in about two days. In contrast, it took about 10 days to restore the network following the 2016 Kumamoto Earthquake.

Elon Musk's SpaceX operates about 10,000 LEO satellites, far exceeding other companies. However, only 650 can provide direct smartphone communication, leaving room for new entrants.

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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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