ASTS Stock Eyes Comeback After 4-Week Slide: Japan Filing Confirms Rakuten-Led Pick For Nearly $1B Push By SpaceX Rival

• A new filing confirmed Rakuten Mobile’s role as joint proposer in Japan’s J-LEO low-Earth orbit satellite infrastructure project.
• Rakuten plans a satellite operations JV with AST SpaceMobile, with equal ownership expected and Rakuten leading management.
• The network aims to connect ordinary smartphones directly to satellites, supporting broader ASTS coverage in fiscal 2027.

Shares of AST SpaceMobile (ASTS) are eyeing a comeback after four straight weeks of losses, following a new filing confirming a Rakuten-led selection for the J-LEO project, keeping the spotlight on a satellite network push aimed at reducing reliance on foreign players such as Starlink.

ASTS stock rose 2% on Tuesday to close at $88.86, extending its weekly gain to 24%. Shares are now on track for their best week in more than a month. 

Japan Filing Confirms Rakuten Mobile J-LEO Role 

The filing, issued by the Communications and Information Network Association of Japan, said that an indirectly subsidized business operator had been selected for the “Low Earth Orbit Satellite Infrastructure Development Project Toward Securing Autonomy,” known as J-LEO.

The notice named Rakuten Mobile as the joint proposer. Japan is reportedly expected to provide 150 billion yen (about $926 million) to a Rakuten Group-led consortium working with AST SpaceMobile to build a domestic satellite communications network. The J-LEO contest apparently included a KDDI-SpaceX group and a Rakuten Mobile-AST SpaceMobile alliance. 

Rakuten has been working on a direct-to-mobile satellite network in Japan that would allow ordinary smartphones to connect directly to satellites without specialized hardware. Rakuten CEO Hiroshi Mikitani told Nikkei that the company plans to form a new joint venture for satellite operations with AST SpaceMobile this year. The two sides are expected to hold equal stakes, with Rakuten leading management.

Japan’s government is expected to provide subsidies over three years to support equipment procurement, ground facilities, and systems needed to launch and control a constellation of low-Earth-orbit satellites. Rakuten Mobile has also been targeting limited-service use of AST satellites in 2026, with broader nationwide coverage expected in fiscal 2027. 

Japan To Cut Starlink Reliance With J-LEO

Japan’s J-LEO program is being developed for national security purposes as the country seeks to reduce dependence on foreign satellite networks such as SpaceX’s Starlink.

The urgency grew after the 2024 Noto Peninsula earthquake, when Starlink helped restore connectivity while damaged cable links were repaired. A domestic direct-to-cell network could give Japan a backup communications layer for remote islands, mountain regions and disaster-hit areas where ground infrastructure is limited or easily disrupted.

Japan is also looking to clear spectrum rules for satellite-to-phone services. The communications ministry has signaled support for using the 700 MHz band for direct satellite links, with rule revisions expected in September. This could be important for Rakuten, which already uses the band for terrestrial mobile service. Since Rakuten does not hold the 2 GHz spectrum used by Starlink, AST SpaceMobile’s tech is expected to play a key role in its Japan-backed direct-to-cell strategy.

How Do Retail Traders Feel About ASTS?

On Stocktwits, retail sentiment for ASTS was ‘bullish’ amid ‘high’ message volume.

One user said, “By Japan validating the ASTS/Rakuten model, other Asian governments and MNOs will now sit up and pay attention. That could make Japan not just a major market — but a strategic reference case for the whole region.”

Another user said, “$ASTS when they drop the official PR. I pray to see Mitsubishi Heavy rocket included in the deal. Makes perfect sense to me to use the Antonov to ship birds there and allow for our new partners to use their own nations rocket.”

ASTS stock has jumped 90% over the past year. 

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