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Japan Backs a Rakuten–AST Satellite-to-Phone Network With ~$926M

Japan moved to back a Rakuten–AST SpaceMobile direct-to-phone satellite network with ~$926M; AST shares jumped 21%, with nationwide service targeted for FY2027.

TL;DR — Japan moved to back a Rakuten–AST SpaceMobile direct-to-phone satellite network with about $926 million in support, sending AST SpaceMobile shares up 21%; the 50/50 venture aims for nationwide service by fiscal 2027.

Your phone may soon connect straight to a satellite in Japan — with the government’s backing. On June 29, 2026, news of a ~$926M push sent AST SpaceMobile soaring.

The deal

Japan moved to back a direct-to-phone satellite network from Rakuten and AST SpaceMobile with about $926 million (¥150 billion over three years). AST SpaceMobile shares jumped 21% to $86.77 — their best day in roughly two years. The link uses Rakuten’s 700 MHz band, with ministerial rules to be revised in September; the planned 50/50 venture (Rakuten-led) targets limited service in 2026 and nationwide coverage in fiscal 2027.

Detail
Government support ~$926M (¥150B / 3 yrs)
ASTS reaction +21% to $86.77
Spectrum Rakuten 700 MHz
Nationwide FY2027

What they said

Rakuten plans "to form a new joint venture for satellite operations with AST SpaceMobile in 2026." — Hiroshi Mikitani, Chairman & CEO, Rakuten (to Nikkei)

Why it matters

  • Sovereign connectivity. Japan backs an alternative to SpaceX’s Starlink direct-to-cell.
  • Spectrum drove the choice. Rakuten turned to AST partly because it lacks the band Starlink uses.
  • Direct-to-cell heats up. Government money accelerates a fast-emerging market.

FAQ

What is Japan supporting with $926 million?

A Rakuten–AST SpaceMobile direct-to-phone satellite network, with about $926 million (¥150 billion over three years). The 50/50, Rakuten-led venture uses Rakuten’s 700 MHz band and targets nationwide service by fiscal 2027.

Why did AST SpaceMobile stock jump?

News of Japan’s roughly $926 million backing sent AST SpaceMobile shares up 21% to $86.77 — their best day in about two years — as it validated the company’s direct-to-cell satellite model against rivals like SpaceX’s Starlink.

Sources

Image: AST SpaceMobile logo by AST SpaceMobile — Public domain, via Wikimedia Commons.

#ast-spacemobile#rakuten#satellite#direct-to-cell#japan#telecom

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