Japan invests $922 million in Rakuten-AST satellite joint venture
2026-07-04 15:02
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en.Wedoany.com Reported - The Japanese government will invest 150 billion yen (approximately $922 million) in a joint venture between Rakuten Mobile and satellite communications company AST SpaceMobile for a low Earth orbit (LEO) satellite communications project, aiming to strengthen domestic satellite communication infrastructure and reduce reliance on foreign suppliers such as Starlink.

The funding will be disbursed in stages over the next three years through the Japan Low Earth Orbit Satellite Communications Project (J-LEO). Japan's Ministry of Internal Affairs and Communications had previously secured the budget and completed the bidding process in June this year.

This investment highlights Japan's national strategy to accelerate the development of autonomous satellite capabilities. Amid growing resilient demand for direct-to-device (D2D) and satellite broadband services, countries are accelerating the localization of communication infrastructure.

Japan is already one of the most advanced direct-to-device (D2D) satellite markets globally. Major domestic telecom operators KDDI, NTT DOCOMO, and SoftBank currently provide satellite services via Starlink. KDDI alone reported 4 million users within the first year of service launch.

However, concerns over excessive reliance on Starlink are intensifying in the Asia-Pacific market, prompting governments to reassess their satellite communication strategies.

Taiwan remains divided over whether to introduce Starlink. Policymakers have expressed concerns about SpaceX CEO Elon Musk's business ties in China, where Tesla has a significant market presence and manufacturing facilities.

Current regulations cap foreign ownership in Taiwanese telecom service providers at 49%, effectively preventing Starlink from entering the market. Some legislators have proposed raising the cap to accelerate satellite connectivity deployment.

But regulators remain cautious. Chen Chung-shu, acting director of Taiwan's National Communications Commission (NCC), stated that Taiwan needs to deploy local gateway infrastructure (similar to Japan's model) to maintain regulatory oversight of satellite services. He also warned that Starlink's second-generation inter-satellite multimedia connectivity capabilities could further challenge national regulatory control and sovereignty.

Australia has also expressed concerns about reliance on foreign satellite operators. As one of Starlink's earliest international broadband markets, Australia currently has approximately 200,000 users. However, Australia's Department of Home Affairs recently noted "availability risks arising from Starlink's offshore nature."

The Australian Signals Directorate has echoed similar concerns, warning that the growing influence of private satellite companies may exceed national regulatory capacity and pose sovereignty and national security risks.

Despite these concerns, Australian government agencies continue to expand their use of Starlink. The federal government has awarded Starlink more than 12 contracts totaling 7.2 million Australian dollars (approximately $4.9 million), including agreements with the Department of Defense and the Electoral Commission. State and local government agencies have issued an additional 40 million Australian dollars in contracts.

Currently, Starlink provides operational services across most of East Asia, with China and North Korea being the main exceptions.

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