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$ASTS: JAPAN'S RAKUTEN TO DEBUT SATELLITE-TO-CELL SERVICE WITH STARLINK RIVAL AST - NIKKEI Space-based network rolls out as soon as this year, will support video calls TAKAHIRO YAMAMOTO September 5, 2026 01:20 JST TOKYO -- Japan's Rakuten Group plans to launch a direct-to-mobile satellite communications service as early as this year through a partnership with U.S. company AST SpaceMobile, competing directly with SpaceX's Starlink system. The tech group and AST SpaceMobile will establish a company in Japan this year that operates the satellites. Satellite telecommunications offer various applications including disaster recovery. The partners also envision expanding the business beyond Japan. AST SpaceMobile, founded in Texas in 2017, went public on Nasdaq in 2021. Abel Avellan, the chairman, CEO and founder, previously managed another satellite communications firm. When Rakuten made a full entry into the mobile business in 2020, the Japanese group formed a strategic partnership with the U.S. company that included an investment. AST SpaceMobile's satellite communications technology can support video streaming as well as voice calls. In a trial conducted with Rakuten last year, the partners enabled video calls via satellite. The antennas attached to the satellites are large, spanning roughly 223 square meters. The size enables high-speed data communications even with a small number of satellites. It is estimated that 90 units would be sufficient to provide services worldwide. The U.S. company plans to put 45 satellites into orbit by early 2027. The company launched three in August, extending the constellation to 13 units. Elon Musk's SpaceX, a pioneer in this field, has launched over 10,000 satellites for its Starlink service. But Starlink's network does not yet support video calls. AST SpaceMobile will have a strong selling point if it becomes the first to feasibly offer video calls. Rakuten also touts the national security benefits of the collaboration with the U.S. partner. The new joint venture will have a nearly 50-50 split, and Rakuten will take the lead in the project. "It's extremely critical to launch a service with a company that has the significant backing of Japanese capital," said Hiroshi Mikitani, Rakuten's chairman and CEO. Japan's government is supporting Rakuten's push into homegrown satellite telecommunications. In June, the Ministry of Internal Affairs and Communications said it selected Rakuten's consortium to receive up to 150 billion yen ($962 million) in subsidies. As a late entrant in Japan's mobile sector, Rakuten has struggled to develop a network of base stations, especially in rural areas. Rakuten has a roaming agreement with KDDI, but the coverage shrinks in October due to the expiration of the deal. Satellite communication services would let Rakuten supplement parts of the existing mobile network. The challenge involves how far Rakuten can catch up with Starlink. Last year, KDDI launched a direct-to-mobile satellite communications service using Starlink. Domestic rivals SoftBank Corp. and NTT Docomo started similar services in 2026. KDDI's user base for mobile satellite communications topped 4 million people as of April, with the service expanding to corporate clients. NTT Docomo had 6.5 million subscribers as of the end of July. asia.nikkei.com/business/tel…