Japan Awards Rakuten Up to $912 Million for Sovereign Satellite Network

The Japanese government has committed up to 148 billion yen, equivalent to $912 million, to Rakuten Group for the construction of a new communications satellite network.

The initiative aims to establish a home-grown operator in the low-orbit satellite communications sector. Tokyo currently relies heavily on foreign providers, including Elon Musk’s SpaceX Starlink, and views domestic capability as critical for the nation’s economic security.

Rakuten is already in discussions with US-based AST SpaceMobile to form a joint venture that will execute the project. A spokesperson for the e-commerce and telecommunications conglomerate confirmed the ongoing talks.

Low-orbit satellite technology ensures smartphones and other telecommunication devices maintain connectivity outside the range of standard cellular base stations, including during natural disasters that may disable ground-based infrastructure.