Rakuten Is Taking On Starlink With a Satellite Service That Needs No Special Phone

Rakuten Group is moving to close one of mobile carriers' most stubborn problems, the dead zones where phones simply cannot reach a tower, by going straight to space. The company is partnering with US firm AST SpaceMobile to launch a direct to cell satellite service in Japan as early as 2026, letting standard smartphones connect to satellites overhead without needing special equipment, a dish, or even a software update most users would notice.

That last detail is the whole point of the technology. Earlier attempts at satellite phone service required dedicated satellite handsets or bulky external hardware, a nonstarter for mainstream consumers who were never going to carry a second device just for emergencies. AST SpaceMobile's approach works with phones already in people's pockets, turning satellite coverage from a niche product into something closer to an invisible backup layer sitting behind the existing network.

A direct shot at Starlink

The move puts Rakuten Group, led by chief executive Hiroshi Mikitani, in direct competition with SpaceX's Starlink, which has been racing to roll out its own direct to cell satellite service globally. Whoever locks in local telecom partnerships first tends to have the advantage in this kind of race, since satellite to phone service depends on cooperation with the carriers that already control spectrum and customer relationships in a given country. By partnering directly with Rakuten, AST SpaceMobile and its chief executive Abel Avellan are betting on getting there in Japan before Starlink can lock down its own local arrangement.

Why Rakuten needs this

Rakuten Mobile has spent years trying to establish itself as a genuine fourth carrier in Japan's crowded telecom market, competing against entrenched incumbents with far larger networks and far more complete coverage. A satellite layer that guarantees connectivity even where its terrestrial towers do not reach is a meaningful selling point for a challenger carrier trying to convince customers that switching away from a bigger, more established network will not leave them stranded in weak signal areas.

Backed by more than just a handshake

This is not simply a standalone commercial deal. Rakuten Group has been building out broader partnerships and drawing government support for satellite infrastructure development in Japan, positioning the AST SpaceMobile tie up as part of a larger strategic push rather than an isolated product launch. That kind of backing tends to matter for satellite ventures, which require sustained capital and regulatory cooperation well beyond what a single telecom deal can provide on its own.

What it means for the region

Southeast Asia has some of the most geographically fragmented mobile coverage challenges in the world, with island nations and rural areas where extending traditional cell towers is expensive and, in some cases, impractical. A working, phone compatible satellite service proven out in Japan gives regional carriers a template worth watching closely, and puts pressure on them to weigh their own satellite partnerships before Starlink or a Rakuten style alliance gets there first.