Japan Confirms Rakuten-AST SpaceMobile J-LEO Selection With $926M Subsidy

According to a filing by the Communications and Information Network Association of Japan issued on June 30, Rakuten Mobile was confirmed as the joint proposer for the Low Earth Orbit Satellite Infrastructure Development Project (J-LEO), with plans to form a satellite operations joint venture with AST SpaceMobile backed by approximately $926 million (150 billion yen) in Japanese government subsidies over three years.

Shares of ASTS rose 2% on Tuesday to close at $88.86, with the stock on track for its best week in over a month as the J-LEO selection underscores Japan's strategy to reduce reliance on foreign satellite networks such as Starlink.