Rakuten is turning to AST SpaceMobile as it lacks access to the 2GHz band used by SpaceX’s Starlink.
- Japan recommended allowing low-Earth-orbit satellites to connect directly to smartphones via Rakuten’s 700 MHz band.
- Rakuten and ASTS plan to form a joint venture this year, with limited ASTS satellite services expected in 2026.
- ASTS’ BlueBird 11, 12 and 13 satellites are targeted for an August launch.
Shares of AST SpaceMobile (ASTS) jumped 2% overnight late Wednesday as Japan moved Rakuten’s satellite phone ambitions closer to launch, setting up a fresh challenge to SpaceX’s Starlink in direct-to-cell services.
ASTS stock slid 7% on Wednesday, on track to log its fourth straight week of losses and its worst month in over two years.
Japan Clears 700MHz Satellite Path
A subcommittee of Japan’s Ministry of Internal Affairs and Communications recommended allowing direct communication between low-Earth-orbit satellites and ordinary smartphones via the 700MHz band, giving Rakuten regulatory approval to begin satellite direct communication services by the end of the year, Nikkei noted.
The recommendation is key, as Rakuten already uses the 700 MHz band for mobile communications between smartphones and ground-based base stations. Japan is expected to revise related ministerial ordinances in September, including rules requiring coordination to avoid interference with other operators.
Rakuten is turning to AST SpaceMobile since it has not been allocated the 2GHz band used by Starlink. This makes AST central to Rakuten’s plan to build a Japan-backed satellite communications network instead of relying on SpaceX’s system.
Rakuten CEO Hiroshi Mikitani said the company will form a satellite business joint venture with AST SpaceMobile this year, with both sides expected to hold equal stakes, with Rakuten leading management. Rakuten Mobile plans to roll out limited services using AST satellites in 2026, with nationwide coverage targeted in fiscal 2027. Mikitani said the investment “won’t be substantial” and “won’t put too much of a financial burden” on Rakuten.
Rakuten Takes On Starlink Rivals
The move puts Rakuten up against larger Japanese carriers already using SpaceX’s Starlink technology. KDDI launched a Starlink-backed direct-to-cell service last year, while NTT Docomo and SoftBank followed in 2026.
Rakuten’s AST-backed service is expected to support connectivity in remote areas, mountainous regions, and disaster zones where ground-based stations are limited or unavailable. The company is also considering opening the service to non-Rakuten users during emergencies.
Meanwhile, Japan is also nearing a decision on its J-LEO satellite communications initiative, often described as the country’s “Japanese Starlink” project. The program carries up to 150 billion yen, or $1 billion, in support for a domestically controlled low-Earth orbit network. Reported contenders include a KDDI-SpaceX group and a Rakuten Mobile-AST SpaceMobile alliance. The winning operator must provide nationwide direct-to-cell coverage by March 2029, support video calling across much of Japan and maintain communications during emergencies.
BlueBird 11-13 Target August Liftoff
AST’s BlueBird satellites 11, 12 and 13 are targeted to launch from Cape Canaveral in the first half of August after last week’s launch of BlueBirds 8, 9 and 10 aboard a Falcon 9 rocket. The company said that its next-generation BlueBird satellites are expected to deliver nearly double the peak data speeds of its initial Block 1 satellites, which recently reached 98.9 Mbps directly to standard smartphones.
How Do Retail Traders Feel About ASTS?
On Stocktwits, retail sentiment for ASTS was ‘bearish’ amid a 6% rise in 24-hour message volumes.
One user said, “$ASTS Hanging in there still, knew plenty of ppl who could not buy into spcX decided to get ASTS, but they do not have diamond hands, they sold as soon as it dipped.”
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Another user said, “$ASTS for all the newbie investors here. This too will come to pass. Generational buying opportunity if you’re holding long. I’m in since $4. The time will come where the macro tides will change and an earth-[shaking] announcement will destroy anyone that’s short this company.”
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ASTS stock has declined 38% over the past year.
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