Ministry to include Rakuten group in satellite direct communication aid

2026-06-29

The Ministry of Internal Affairs and Communications is moving to make the Rakuten group consortium eligible for subsidies for Japanese companies' businesses that communicate directly with satellites. It will support a total of 150 billion yen over three years to cover costs including satellite launches. The aim is to reduce dependence on overseas providers from the perspective of economic security.

Rakuten to set up new company with AST

A formal decision is expected soon. Rakuten Group will team up with AST SpaceMobile, a U.S. satellite communications company it has invested in, to expand its business in Japan. Subsidies will cover costs including procurement of equipment needed for a satellite constellation linking multiple low-Earth orbit satellites, launches, and construction of ground facilities for control.

Focus on securing communications during disasters

Hiroshi Mikitani, chairman and president of Rakuten Group, has told the Nikkei in an interview that the company plans to establish a new company with AST SpaceMobile to handle satellite operations in Japan during 2026.

Satellite communications can secure a means of communication even when terrestrial networks are unavailable due to natural disasters and other events. During the 2024 Noto Peninsula earthquake, SpaceX's Starlink was used as an emergency measure until communication cables were restored. It makes mobile phone use possible even in areas where laying fiber-optic lines is difficult, such as mountain regions, remote islands and at sea.

Caution over reliance on foreign players

The satellite communications market is currently dominated by foreign players, led by Starlink. However, if reliance on overseas providers continues, there is a risk that services could suddenly become unavailable following changes in management policy, and there is also the risk that requests for roaming for temporary use during disasters may not be approved. In 2025, SpaceX CEO Elon Musk was said to have referred to cutting off Starlink use in Ukraine and to have pressured Ukraine to accept an early peace with Russia.

The Ministry of Internal Affairs and Communications has decided that it needs to foster a Japanese version of Starlink operated by Japanese companies and will launch the new project. It appears that no other operator came forward for the subsidy program apart from the Rakuten group consortium. On the 24th, the ministry indicated a policy of allowing satellite direct communication in the 700 megahertz band in preparation for the new project. It will revise ministerial ordinances and other rules as early as September. Rakuten Group already has a communications network in place in the same frequency band linking mobile phones with terrestrial base stations.

In the future, it also envisions using higher frequency bands to improve communication speeds. If necessary, the ministry will also consider developing a system to support satellite direct communication in higher frequency bands.

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