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Newsletter N°90 - June 2026
📶 Telecom: Rakuten Prepares Japan's First Domestic Direct-To-Smartphone Satellite Network ​
Rakuten Mobile Chairman Hiroshi Mikitani and AST SpaceMobile CEO Abel Avellan
Rakuten is moving into direct-to-device (D2D) satellite communications by preparing Japan's first domestically operated low Earth orbit (LEO) satellite network for smartphones. Following a recommendation issued by Japan's Ministry of Internal Affairs and Communications on June 24, the company is now authorised to use its existing 700 MHz mobile spectrum for direct satellite communications, paving the way for commercial service before the end of 2026.
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The project marks a significant evolution of Japan's satellite connectivity landscape. Until now, Japanese mobile operators including KDDI, NTT Docomo and SoftBank have relied on SpaceX's Starlink constellation to provide direct satellite connectivity using the 2 GHz band. Rakuten is taking a different approach by partnering with US satellite operator AST SpaceMobile, whose technology communicates directly with standard smartphones without requiring dedicated satellite terminals. Rakuten is taking a different approach by partnering with US satellite operator AST SpaceMobile, whose technology communicates directly with standard smartphones without requiring dedicated satellite terminals.
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To support the initiative, Rakuten will establish a joint venture with AST SpaceMobile before the end of the year. The company plans to acquire several AST satellites to build a satellite network dedicated to the Japanese market rather than relying solely on capacity provided by an international operator. Initially, the service will operate using AST's existing satellite infrastructure before progressively transitioning to Rakuten's own network.
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​A key differentiator lies in the technology itself. AST's satellites deploy antennas measuring approximately 220 square metres in orbit, enabling broadband-speed communications, including video transmission, directly with conventional smartphones. By using Rakuten's existing 700 MHz spectrum, the solution also benefits from lower-frequency propagation characteristics that improve coverage in mountainous and rural areas where terrestrial mobile infrastructure remains limited.
BlueBird LEO satellite developed by AST SpaceMobile for direct-to-smartphone broadband communications.
Beyond commercial mobile coverage, Rakuten also positions the network as critical infrastructure for disaster resilience. The company is reportedly considering making satellite connectivity available to customers of other mobile operators during major emergencies, reinforcing the role of satellite networks as national backup communications infrastructure. The project could also benefit from Japan's government programme supporting sovereign satellite communications, which provides up to ¥150 billion in subsidies to strengthen domestic space-based connectivity capabilities.
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​Strategically, the initiative reflects a broader shift in the telecom industry as operators seek greater control over satellite infrastructure rather than relying exclusively on global constellations. For Rakuten, satellite connectivity becomes both a network extension strategy and a way to differentiate its mobile offering while supporting Japan's ambitions to build more resilient and sovereign communications infrastructure.