Rakuten and AST SpaceMobile Land $1B Japan D2D Constellation Deal

Japan's Ministry of Internal Affairs and Communications will pump roughly $1 billion into a new Rakuten–AST SpaceMobile joint venture to build a domestic direct-to-device (D2D) constellation, with services set to switch on in early 2029.

The venture, branded Rakuten AST, won its slot under the Japan Low Earth Orbit Satellite Communications Project (J-LEO). The money funds deployment of a Japanese-flagged mid-band satellite constellation in low-Earth orbit — a first for the country's non-terrestrial network (NTN) push.

For Rakuten Mobile subscribers, the practical payoff is high-speed internet delivered straight to standard smartphones, no dedicated satellite handset required. Rakuten AST also plans to serve AST SpaceMobile's global customers from Japanese territory, which gives the venture a role beyond the domestic market.

Why does this deal matter to Japan's operators?

It cements a split in the Japanese market. Rakuten remains the only major domestic operator backing AST SpaceMobile. KDDI, SoftBank, and NTT DoCoMo have all lined up behind SpaceX for their D2D programs.

The Rakuten–AST relationship isn't new. The two signed a commercial agreement in 2020 to develop connectivity compatible with Rakuten's Japanese mobile network. That same year, Rakuten joined Vodafone as a lead investor in the company then known as AST & Science, lifting its total capital to $128 million. The joint venture converts a five-year partnership into a formal, government-backed infrastructure play.

What about the Edge compute angle?

Alongside connectivity, Rakuten Mobile and AST SpaceMobile will co-develop AI Edge computing in orbit and AI-driven spectrum management technology. Rakuten says the research targets faster data communications plus industry-specific offerings — think IoT packages aimed at logistics, infrastructure monitoring, and construction verticals.

Industry voices back the logic. At this year's London edition of the Xcelerated Compute Show, David Anderson, chief product officer of non-terrestrial infrastructure player Ramon Space, told this title that IoT is a leading use case for space-based compute.

"Our cell phones today can actually start talking to satellites directly, so having that compute truly at the Edge is very advantageous, and that plants the business case and the seed to say there's demand today that has nothing to do with the power and regulatory constraints of terrestrial data centers," Anderson said.

He also argued the case extends well beyond IoT sensors. The volume of data already generated in orbit — from communications, radar, and D2D links — makes on-orbit processing a necessity rather than a nice-to-have.

"People are trying to solve the communications bottleneck of how you get all this data down, and (Edge computing) is a great way to solve the communication bottleneck," Anderson said.

What changes for practitioners?

Three things stand out:

• Timeline. Domestic operations begin in early 2029, so enterprise IoT and D2D service design work in Japan now has a concrete anchor date.
• Spectrum. A mid-band, Japanese-flagged constellation means domestic regulatory treatment and spectrum planning distinct from the SpaceX-aligned camps at KDDI, SoftBank, and NTT DoCoMo.
• Verticals. The stated targets — logistics, infrastructure monitoring, construction — signal where Rakuten AST expects its first commercial pull beyond consumer broadband.

The $1 billion commitment also sets a benchmark: this is roughly what one national D2D constellation now costs to stand up with state backing, a figure rivals and vendors will price against as J-LEO awards continue.