AST SpaceMobile (ASTS) shares rose 2% on Tuesday to close at $88.86, extending the stock's weekly gain to 24%, after a filing from the Communications and Information Network Association of Japan confirmed Rakuten Mobile as the joint proposer for the J-LEO low-Earth orbit satellite infrastructure project. Japan is expected to provide 150 billion yen (approximately $926 million) to a Rakuten Group-led consortium working with AST SpaceMobile to build a domestic satellite communications network. Rakuten CEO Hiroshi Mikitani told Nikkei the company plans to form a joint venture for satellite operations with AST SpaceMobile this year, with equal ownership and Rakuten leading management. The initiative follows Japan's push to reduce dependence on foreign satellite networks such as SpaceX's Starlink, a priority heightened after the 2024 Noto Peninsula earthquake exposed vulnerabilities in ground-based infrastructure.
Japan Filing Confirms Rakuten Mobile as J-LEO Joint Proposer
The filing issued by the Communications and Information Network Association of Japan identified an indirectly subsidized business operator selected for the "Low Earth Orbit Satellite Infrastructure Development Project Toward Securing Autonomy," known as J-LEO. The notice named Rakuten Mobile as the joint proposer. The J-LEO contest included a KDDI-SpaceX group and a Rakuten Mobile-AST SpaceMobile alliance. Japan's government is expected to provide subsidies over three years to support equipment procurement, ground facilities, and systems needed to launch and control a constellation of low-Earth-orbit satellites.
Rakuten Plans Equal-Stake Joint Venture With AST SpaceMobile
Rakuten CEO Hiroshi Mikitani told Nikkei that the company plans to form a new joint venture for satellite operations with AST SpaceMobile this year. The two sides are expected to hold equal stakes, with Rakuten leading management. The network aims to allow ordinary smartphones to connect directly to satellites without specialized hardware. Rakuten Mobile has targeted limited-service use of AST satellites in 2026, with broader nationwide coverage expected in fiscal 2027.
Japan Communications Ministry Signals 700 MHz Spectrum Support
Japan's communications ministry has signaled support for using the 700 MHz band for direct satellite links, with rule revisions expected in September. Rakuten already uses the 700 MHz band for terrestrial mobile service. Since Rakuten does not hold the 2 GHz spectrum used by Starlink, AST SpaceMobile's technology is expected to play a key role in the Japan-backed direct-to-cell strategy. The J-LEO program is being developed for national security purposes, with the domestic direct-to-cell network intended to provide a backup communications layer for remote islands, mountain regions, and disaster-hit areas where ground infrastructure is limited or easily disrupted.
ASTS Stock Rises 2% Tuesday, Posts 24% Weekly Gain
ASTS stock closed at $88.86 on Tuesday, a 2% gain. The stock posted a 24% weekly gain, marking its best week in more than a month. ASTS shares have risen 90% over the past year. On Stocktwits, retail sentiment for ASTS was classified as 'bullish' with 'high' message volume as of June 30.
FAQ
What did the Japan filing confirm about Rakuten Mobile?
The filing from the Communications and Information Network Association of Japan confirmed Rakuten Mobile as the joint proposer for the J-LEO low-Earth orbit satellite infrastructure project.
How much funding is Japan expected to provide for the Rakuten-AST SpaceMobile consortium?
Japan is expected to provide 150 billion yen, approximately $926 million, to the Rakuten Group-led consortium working with AST SpaceMobile over three years.
When does Rakuten Mobile plan to launch satellite services with AST SpaceMobile?
Rakuten Mobile has targeted limited-service use of AST satellites in 2026, with broader nationwide coverage expected in fiscal 2027.
