AST SpaceMobile shares fall 8.7% after Rakuten joint venture
Rakuten AST will receive up to 148 billion yen, about $1 billion, in Japanese government support over about three years, and AST SpaceMobile will supply its satellites.
Key takeaways
- AST SpaceMobile (ASTS) and Rakuten Group agreed to establish Rakuten AST, Inc. on November 6, 2026, to build a direct-to-device satellite network in Japan. Japan's Ministry of Internal Affairs and Communications selected the venture for about 148 billion yen, roughly $1 billion, over about three years. Operations are planned to commence by the end of March 2029.
AST SpaceMobile (ASTS) and Rakuten Group agreed to establish Rakuten AST, Inc., a joint venture to build a satellite network that connects smartphones directly in Japan.
Shares fell 8.7% at 3:59 p.m. ET, from a $36.89 close.
Japan's Ministry of Internal Affairs and Communications selected a joint proposal from Rakuten and Rakuten Mobile for its J-LEO satellite communications project.
Rakuten AST is expected to receive up to 148 billion yen, or about $1 billion, in support over about three years, paid through the Communications and Information Network Association of Japan.
Rakuten Group owns 51% of the joint venture and AST SpaceMobile Japan Holdings II GK, an indirect AST SpaceMobile subsidiary, owns 49%. Legal capital is 100 million yen, and establishment is planned for November 2026.
The satellites will be compatible with mid-band spectrum, and AST SpaceMobile will supply them to power Japan's sovereign direct-to-device constellation.
Domestic operations are planned to begin by the end of March 2029. Rakuten AST also plans to offer services to AST SpaceMobile's customers worldwide, subject to regulatory approval.
Mickey Mikitani, Chairman and CEO of Rakuten Group, said: "we will contribute to the development of disaster-resilient communications infrastructure."
Rakuten Mobile plans to begin commercial-environment testing of its satellite-to-mobile service within 2026, under the strategic partnership established in March 2020. It will also work with AST SpaceMobile on AI edge computing and plans to develop AI-driven spectrum management technology.