Rakuten Gets Government Investment for Satellite Network

Japanese government will co-fund Rakuten Mobile’s plans to build a satellite communications network. The government plans to invest JPY148 billion ($912 million) in the project.

The funding would be released by the government over three years, covering the cost of acquiring the satellites and their eventual launch. The move is part of a push by Japan to develop a national satellite communication system, reducing reliance on international companies including SpaceX and its Starlink offering. Funding for the Japan Low Earth Orbit Satellite Communications Project (J-LEO) initiative is to be provided by the Ministry of Internal Affairs and Communications. Rakuten Mobile is reported to be in talks with AST SpaceMobile to form a joint venture for the project. The government hopes the project will give the nation more independence in the LEO market.

Major operators KDDI, NTT Docomo, and SoftBank have partnerships with SpaceX to employ Starlink connectivity. Rakuten Mobile previously worked with AST SpaceMobile to place a video call using a LEO satellite and a standard smartphone in what they declared was a first for Japan. The operator’s parent Rakuten Group is an investor in AST SpaceMobile. In February, Japan’s space agency selected Rakuten Mobile to receive JPY11 billion in funding for a dynamic frequency sharing R&D project covering next-generation satellite communications.