– Approximately USD 1 billion in funding awarded from Japan’s MIC to support deployment of Japanese-flagged mid-band satellite constellation

– Rakuten and AST SpaceMobile to build disaster-resilient, uninterrupted communications infrastructure, strengthening economic security for Japan

– AST SpaceMobile to supply satellites to power Japan’s sovereign direct-to-device constellation

Rakuten Group, Inc. and AST SpaceMobile, Inc. (NASDAQ: ASTS), the company building the first and only space-based cellular broadband network accessible directly by everyday smartphones, agreed to establish Rakuten AST, Inc. on November 6, 2026 (Japan Standard Time)^*1. The joint venture is tasked with building a direct-to-device communications network in Japan using low Earth orbit (LEO) satellites to provide service to commercially available smartphones, strengthening Japan’s communications infrastructure in the event of disasters and other emergencies.

The Ministry of Internal Affairs and Communications’ (MIC) selected the joint proposal from Rakuten’s preparatory company and Rakuten Mobile, Inc. for the publicly solicited “J-LEO: Japan Low Earth Orbit Satellite Communications Project“*². Rakuten AST is expected to receive up to 148 billion yen (approx. 1 billion USD) in support over approximately three years under J-LEO, through the Communications and Information Network Association of Japan (CIAJ), the organization established to manage the fund^*3,4. Through this joint venture, Rakuten AST will collaborate with AST SpaceMobile to deploy and manage satellites compatible with mid-band spectrum, in order to establish a satellite communications network and commence domestic operations by the end of March 2029.

The J-LEO Project will leverage the largest communication satellites ever deployed in LEO to build domestic communications infrastructure that enables direct satellite-to-smartphone connectivity and strengthens economic security. In addition to extending cellular broadband connectivity to areas with limited or no terrestrial coverage, the project aims to ensure cellular broadband connectivity during emergencies, such as natural disasters, by establishing a framework for emergency inter-carrier roaming among mobile network operators.

Through Rakuten AST, Rakuten and Rakuten Mobile aim to establish a non-terrestrial network (NTN) managed and operated in Japan. The companies will deploy and operate a resilient, stable communications infrastructure capable of maintaining priority and stable connectivity, independent of external conditions – even in times of emergency.

The satellite communications service to be deployed by Rakuten AST will leverage AST SpaceMobile’s large-scale satellites to enable high-speed internet connectivity — such as video streaming and social media — on off-the-shelf smartphones without the need for specialized equipment^*5. Because the base station equipment is installed on ground-based infrastructure, Japanese telecommunications operators can flexibly and autonomously manage and operate the network.

AST SpaceMobile will supply the satellites to power Japan’s sovereign D2D constellation. Beyond priority Japanese domestic market usage, Rakuten AST also plans to work with AST SpaceMobile to provide these services through AST SpaceMobile to its customers worldwide, subject to regulatory approval.

Rakuten Mobile will also work with AST SpaceMobile to advance the use of AI edge computing and plans to develop AI-driven spectrum management technology, exploring their application for higher-speed data communications and industry-specific solutions such as IoT. The company aims to expand its solution offerings beyond telecommunications carriers to include connectivity-reliant industries, such as logistics, infrastructure monitoring, construction, and agriculture.

Mickey Mikitani, Chairman and CEO, Rakuten Group, commented, “This project is a key pillar of Rakuten Mobile’s network strategy. By building an integrated framework spanning satellite procurement through operations and accelerating technological innovation, we will contribute to the development of disaster-resilient communications infrastructure and the improvement of Japan’s communications environment. We will maximize capital efficiency and pursue the expansion of business opportunities in the satellite communications sector.”

Abel Avellan, Founder, Chairman and CEO, AST SpaceMobile, commented, “This represents a significant milestone for AST SpaceMobile and validates the importance of space-based cellular broadband connectivity as countries around the world increasingly recognize the technology as a critical complement to terrestrial wireless infrastructure to realize the goal of 100% broadband availability wherever people work, live and travel. Through our technology, we will enhance the resilience of Japan’s communications infrastructure while strengthening our global network by leveraging capacity that can also be utilized outside of Japan.”

In addition to this project, Rakuten Mobile plans to begin commercial-environment testing of its satellite-to-mobile service within 2026, under the strategic partnership between Rakuten and AST SpaceMobile established in March 2020^*6.

Rakuten, Rakuten Mobile, and AST SpaceMobile will continue working toward the early realization of D2D satellite communications, advancing the development of resilient communications networks.