Rakuten satellite project to get up to $926m Japanese government grant

Japan's government is set to provide up to ¥150 billion ($926 million) in subsidies to a Rakuten-led consortium to build a domestic low-Earth-orbit satellite communications network. The initiative is framed as an economic security measure to reduce reliance on foreign systems like Starlink. Rakuten plans to form a joint venture with AST SpaceMobile in 2026, targeting direct-to-device connectivity for standard smartphones without specialized hardware. Limited service is expected in 2026, with nationwide coverage planned for fiscal 2027. The move mirrors similar efforts in Europe and reflects a global trend of nations seeking sovereign satellite infrastructure as connectivity from orbit becomes critical infrastructure.

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