Rakuten Cleared to Advance D2C Service in Japan with AST SpaceMobile

Rakuten has moved a step closer to launching its own direct-to-cell satellite services in Japan after a government advisory council approved the use of 700MHz spectrum for communications between low Earth orbit satellites and standard smartphones.

The recommendation from Japan’s Information and Communications Council clears the way for Rakuten to use spectrum it already holds for terrestrial mobile services as part of a satellite-to-phone offering. Related ministerial regulations are expected to be updated in September, including requirements to coordinate with other operators and avoid interference in the shared band.

Rakuten plans to build the service with AST SpaceMobile, with the two companies expected to establish a joint venture this year. The company is targeting commercial launch by the end of 2026, with broader nationwide coverage expected in fiscal 2027.

The approach differs from Japan’s other major mobile operators. KDDI, NTT Docomo and SoftBank have all moved toward satellite connectivity using SpaceX’s Starlink, which relies on 2GHz spectrum. Rakuten has not been allocated that band, making AST SpaceMobile’s 700MHz-based direct-to-cell model central to its strategy.

The service is expected to support ordinary smartphones without hardware modifications, extending connectivity to rural, mountainous, island and disaster-affected areas where terrestrial infrastructure is limited or vulnerable. For Japan, where earthquakes, typhoons and tsunamis can disrupt ground networks, satellite-to-phone connectivity is being positioned as both a coverage extension and a resilience layer.

Rakuten CEO Hiroshi Mikitani has also framed the project in terms of national security and domestic control, with the joint venture expected to be backed substantially by Japanese capital while using AST SpaceMobile’s satellite technology. The move aligns with Japan’s broader push to strengthen sovereign satellite communications capability and reduce reliance on foreign-operated systems.