Japan is investing up to $912 million in Rakuten to build a domestic low-Earth orbit satellite network, aiming to reduce reliance on foreign operators like Starlink.
The Japanese government has approved up to 148 billion yen ($912 million) in financial support for Rakuten Group to help build a domestic low-Earth orbit (LEO) satellite communications network, as the country seeks to strengthen its space-based connectivity and reduce reliance on foreign providers.
The funding was announced on Tuesday by the Communications and Information Network Association of Japan (CIAJ).
Rakuten, whose businesses span e-commerce, financial services and telecommunications, is working with U.S.-based AST SpaceMobile to establish a joint venture for the project, a company spokesperson confirmed. The partnership aims to develop satellite-based mobile communication services capable of providing broader nationwide coverage.
Japan currently relies on overseas operators, including SpaceX’s Starlink, for low-Earth orbit satellite connectivity. By supporting a domestic satellite network, the government aims to improve the country’s economic security and build greater resilience in critical communications infrastructure.
Low-Earth orbit satellite communications enable smartphones and other mobile devices to remain connected in areas beyond the reach of conventional cellular towers. The technology is also considered vital during natural disasters, when ground-based communication infrastructure may be damaged or rendered inoperable, ensuring emergency connectivity and uninterrupted communication services.
The investment underscores Japan’s broader strategy to expand its domestic space and telecommunications capabilities while reducing dependence on foreign satellite operators for critical communications services.
