MIC support for low earth orbit (LEO) satellite communications projects

Research evidence excerpt

MIC support for low earth orbit (LEO) satellite communications projects

Global Markets Research

MIC support for low earth orbit (LEO) satellite 30 June 2026communications projects

EQUITY: JAPAN TELECOMMUNICATIONS

Research AnalystsNikkei reports MIC has made decision about

Japan telecommunicationsawarding subsidies

Daisaku Masuno, CFA - NSC

daisaku.masuno@nomura.comQuick Note +81 3 6703 1180

Content of 30 June Nikkei report

On 30 June, the Nikkei reported that a consortium led by Rakuten Group [4755] (Buy) is

expected to be selected by the Ministry of Internal Affairs and Communications (MIC) for a

"homegrown low-Earth orbit satellite communications network" development project

(Japan Low Earth Orbit Satellite Communications Project for Ensuring Autonomy) for

which the government has allocated ¥150bn for subsidies in the FY25 supplementary

budget. According to the article, Rakuten Group will partner with US satellite

communications company AST SpaceMobile, in which it has a stake, to launch a direct-to-

mobile satellite network business in Japan. The facts of the matter are unconfirmed.

According to the grant guidelines of the Digital Infrastructure Development Fund, which

was established by the MIC, subsidies provided are for satellite procurement, satellite

launches, and the development of ground equipment, with the amount of subsidies

provided set at half of eligible project expenses.

Rakuten Group's efforts for providing direct-to-mobile satellite network services

Rakuten Group plans to provide direct-to-mobile satellite network services in the 700MHz

band in Japan using AST SpaceMobile's satellites. Rakuten Mobile holds a 6MHz wide

bandwidth in the 700MHz band and, going forward, we will be keeping a close eye on