Japan's Rakuten Group has announced plans to launch a direct-to-mobile satellite communications service in partnership with U.S. company AST SpaceMobile, aiming to compete directly with SpaceX's Starlink system. The rollout is expected as early as this year, according to Rakuten Group CEO Hiroshi Mikitani and AST SpaceMobile CEO Abel Avellan, who marked the collaboration during an event in 2024 [1].
The new service will allow smartphone users to connect directly to satellites without requiring specialized equipment, enabling data-intensive activities such as video calls [1]. This innovation is poised to enhance coverage in remote and rural areas where terrestrial mobile networks are limited or unavailable, potentially transforming the Japanese telecommunications market [1].
Rakuten's partnership with AST SpaceMobile represents a strategic move to expand its presence in advanced communications infrastructure. The satellite-to-cell service is viewed as a significant step toward bridging connectivity gaps and meeting Japan's increasing demand for reliable, high-speed mobile communications [1].
Market implications are substantial, as Rakuten's entry into the satellite-to-cell space positions it as a direct competitor to Starlink, opening new opportunities for both companies and potentially reshaping the competitive landscape in Japan's telecommunications sector [1].
CONCLUSION
Rakuten's collaboration with AST SpaceMobile to launch a direct satellite-to-cell service is expected to significantly impact Japan's telecommunications market by improving connectivity in underserved areas. The move positions Rakuten as a direct competitor to Starlink and underscores its commitment to advanced communications infrastructure. Market participants should monitor the rollout and competitive dynamics closely.