TL;DR

Rakuten Group will form a joint venture with US-based AST SpaceMobile to provide satellite-to-cell service in Japan. This marks a significant move into satellite-based mobile connectivity, with the partnership expected to purchase and operate satellites for direct-to-phone communication.

Rakuten Group has announced plans to form a joint venture with U.S.-based AST SpaceMobile this year to develop satellite-to-cell service in Japan, marking a strategic move into satellite-based mobile communications.

Rakuten’s new joint venture will purchase and operate satellites to provide direct-to-mobile communication services in Japan, bypassing traditional terrestrial networks. The partnership aims to leverage satellite technology to improve connectivity, especially in remote or underserved areas. Rakuten Group CEO Mikitani confirmed the initiative in an online interview with Nikkei, emphasizing its potential to transform mobile services in Japan. The partnership aligns with similar efforts by competitors, such as SpaceX’s Starlink, which also offers satellite-based connectivity solutions. The exact timeline for service rollout and specific technical details remain to be disclosed, but the move signifies Rakuten’s commitment to expanding its digital infrastructure using satellite technology.

Impact of Satellite-to-Cell Service on Japan’s Connectivity

This partnership could significantly enhance mobile coverage across Japan, particularly in rural or difficult-to-reach areas where terrestrial networks are limited. It positions Rakuten as a major player in the emerging satellite-based mobile service market, potentially disrupting existing telecom paradigms. The initiative also reflects broader industry trends towards integrating satellite technology into mainstream mobile networks, which could lead to increased competition and innovation in Japan’s telecommunications sector. For consumers, this development promises improved coverage and possibly lower costs, though full service details and pricing are yet to be announced.

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Background of Satellite-Based Mobile Service Initiatives

Rakuten’s move follows global trends where telecom companies and startups are exploring satellite technology to expand connectivity. AST SpaceMobile, a US-based company, has been developing satellite networks capable of direct-to-phone communication, aiming to complement terrestrial networks. Similar efforts include SpaceX’s Starlink, which has started offering mobile connectivity solutions. Japan’s telecom industry has been gradually adopting new technologies, but satellite-based direct-to-phone services are still in early stages of development worldwide. Rakuten’s partnership indicates a strategic push to adopt this innovative approach domestically, leveraging AST SpaceMobile’s satellite network expertise.

“This collaboration could redefine how mobile connectivity is delivered in Japan, especially in rural areas with limited terrestrial infrastructure.”

— an anonymous researcher

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Details Still Unclear on Service Deployment and Coverage

It is not yet clear when the satellite-to-cell service will be operational in Japan, nor the specific technical standards, coverage areas, or pricing models. The timeline for satellite deployment and regulatory approvals remains uncertain, and full technical specifications have not been disclosed. Additionally, how the service will integrate with existing mobile networks and devices is still under development.

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Next Steps in Rakuten and AST SpaceMobile Partnership

Rakuten and AST SpaceMobile are expected to finalize their joint venture agreements and begin satellite procurement later this year. The companies will likely conduct pilot tests before a broader rollout, with more detailed timelines and technical details anticipated in upcoming announcements. Regulatory approval processes in Japan may also influence the deployment schedule. Industry observers will monitor these developments for indications of service launch dates and coverage scope.

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Key Questions

When will the satellite-to-cell service be available in Japan?

The exact launch date has not been announced; service rollout is expected after satellite deployment and regulatory approvals, likely within the next few years.

How will this satellite service differ from existing mobile networks?

It aims to provide direct-to-phone communication via satellites, potentially offering coverage in areas where terrestrial networks are limited or unavailable.

Will this service be compatible with all mobile devices?

Details on device compatibility are not yet available, but the service is expected to work with standard mobile phones capable of connecting to satellite signals.

What are the potential benefits for consumers?

Improved coverage in remote areas, possibly lower costs, and enhanced connectivity options are among the anticipated benefits.

Are there similar services available elsewhere?

Yes, companies like SpaceX with Starlink and others are developing satellite-based connectivity solutions, but direct-to-phone services are still emerging globally.

Source: Nikkei Asia


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