Full Breakdown
Japan Grants Up to ¥150 billion to Rakuten for a Domestic LEO Satellite Network
7/2/2026, 11:27:56 AM
Core Event
On 30 June 2024 the Ministry of Internal Affairs and Communications announced a subsidy of up to ¥150 billion (? $912 million) for Rakuten Group to build a low-Earth-orbit (LEO) satellite communications network. The grant will cover up to half the costs of satellite procurement, launch services and ground-facility construction. Rakuten Mobile will partner with AST SpaceMobile, aiming for service in the October-December 2026 window and video-calling by fiscal 2028.
Background & Context
Japan’s three major carriers—KDDI, NTT Docomo and SoftBank—rely on SpaceX’s Starlink for LEO connectivity. The reliance was highlighted after SpaceX’s CEO suggested cutting Starlink service to Ukraine in 2025 and after Starlink aided communications during the 2024 Noto Peninsula earthquake, raising a “security blind spot.”
Data & Statistics
The ¥150 billion subsidy, paid over three years, will cover up to 50 % of each cost category. The constellation will orbit at 350-1,400 km, enabling direct smartphone links without dedicated terminals. The 700 MHz band will be repurposed for satellite-to-smartphone links pending amendment. Key dates: subsidy announced 30 June 2024; joint-venture with AST SpaceMobile to be finalised early 2026; commercial launch Q4 2026; video-calling by FY 2028.
Conflicting Reports & Gaps
Sources cite two grant figures: ¥148 billion (? $912 million) and ¥150 billion (? $912 million).
Why It Matters
The government frames the aid as a step to “correct excessive dependence on foreign technology,” bolster economic security and ensure communications resilience in disasters. A domestically owned LEO network could give Rakuten a competitive edge over KDDI, NTT Docomo and SoftBank, and expand Japan’s space-industry supply chain.
Official Statements & Responses
MIC called the support “an important step toward the realization of the first low-Earth-orbit satellite communications network operated by a Japanese company.” CIAJ said the grant aims to nurture home-grown operators and strengthen economic security. A Rakuten spokesperson confirmed the partnership with AST SpaceMobile and the 2026 launch target. Hiroshi Mikitani, Rakuten Group chairman, said the company will own the satellite constellation.
Criticism & Opposition
Analysts question the ¥150 billion outlay given Starlink’s market dominance, arguing a late-comer may struggle to match its cost and performance.
Verbatim Quotes
- “TOKYO, June 30 (Reuters) - The Japanese government will grant up to 148 billion yen ($912 million) to Rakuten Group(4755.” — Ministry of Internal Affairs and Communications
- “O), opens new tabStarlink and other services offered by ?foreign companies for low-orbit satellite communications, and it aims to nurture home-grown operators to boost its economic security.” — Communications and Information Network Association of Japan (CIAJ)
- “correct excessive dependence on foreign technology,” — Government spokesperson
What’s Next
MIC will begin disbursing subsidies while reviewing the 700 MHz amendment. Rakuten and AST SpaceMobile aim to seal their joint-venture in early 2026, then secure satellite procurement and launch contracts. Observers will watch the Q4 2026 rollout for technical viability and uptake by other Japanese carriers.
