Japan's Satellite Communications Revolution: Strategic Alliances Powering the Future of Resilient Connectivity

Japan is emerging as a global leader in the satellite communications race, driven by a confluence of strategic partnerships, technological innovation, and a pressing need for resilient infrastructure. Rakuten Group, AST SpaceMobile, and Amazon are spearheading this transformation, positioning Japan at the forefront of the satellite-to-mobile revolution. For investors, this represents a high-conviction opportunity in the next decade's critical infrastructure, where connectivity is no longer a luxury but a lifeline.

Rakuten and AST SpaceMobile: Pioneering Satellite-to-Smartphone Connectivity

The most groundbreaking development in 2025 came from Rakuten Mobile and AST SpaceMobile. In April, they achieved the first-ever broadband video call between unmodified smartphones using a low Earth orbit (LEO) satellite. This milestone, conducted between Fukushima Prefecture and Tokyo, showcased AST SpaceMobile's BlueBird satellite technology, which features an antenna 36 times larger than competitors'. The test demonstrated the potential to deliver high-speed data and multimedia services without hardware modifications or special apps—a game-changer for global connectivity.

This collaboration, rooted in a 2020 partnership, aims to launch the Rakuten Saikyo Satellite Service by late 2026. The service will automatically switch to satellite connectivity when terrestrial networks fail, ensuring 100% coverage in Japan—a country where traditional networks only reach 70% of the population. Rakuten's CEO, Mickey Mikitani, has emphasized the urgency of this technology for disaster-prone regions, where earthquakes, typhoons, and landslides often disrupt terrestrial infrastructure.

AST SpaceMobile's technological edge is further bolstered by its satellite deployment strategy. With 243 satellites planned by 2026 and $550 million in recent funding, the company is scaling its constellation to support global coverage. Its stock surged 211% from April to July 2025, reflecting investor confidence in its disruptive potential.

Amazon's Strategic Expansion: Project Kuiper and AWS-Driven Resilience

While Rakuten and AST SpaceMobile focus on consumer and enterprise connectivity, Amazon is building a parallel ecosystem through Project Kuiper and AWS. In 2025, Amazon partnered with NTT and SKY Perfect JSAT to deploy LEO satellite broadband for Japanese enterprises and government agencies. NTT DOCOMO, Japan's largest mobile operator, plans to integrate Project Kuiper into its network to connect remote areas without costly terrestrial infrastructure. This partnership is critical for Japan's mountainous terrain and archipelago geography, where traditional networks struggle to reach isolated communities.

Amazon's AWS is also playing a pivotal role in enabling resilient infrastructure. By integrating Project Kuiper with AWS's cloud services, Japanese businesses can leverage AI, IoT, and machine learning for applications ranging from predictive maintenance to remote healthcare. AWS's $15.5 billion investment in Japan over the next five years—focused on expanding data centers and enhancing security—further cements its role as a backbone for the country's digital transformation.

Why This Is a High-Conviction Investment

Japan's satellite communications market is not just about filling coverage gaps—it's about building a resilient, future-proof infrastructure. The strategic partnerships between Rakuten, AST SpaceMobile, and Amazon are accelerating the adoption of satellite-to-mobile technology, which is projected to grow into a multibillion-dollar industry.

For investors, the key themes are technological leadership, strategic alliances, and geographic necessity. Rakuten's Saikyo Satellite Service and AST SpaceMobile's satellite constellation represent a $100+ billion opportunity in global satellite broadband. Amazon's Project Kuiper, with its $10 billion investment in 3,236 satellites, is a long-term play on global connectivity, with Japan serving as a critical testbed.

Moreover, Japan's government is actively supporting these initiatives through regulatory frameworks and funding for digital resilience. The country's focus on disaster preparedness and universal connectivity creates a unique tailwind for companies operating in this space.

The Road Ahead

By 2026, Japan could become a model for how satellite communications integrate with terrestrial networks to create a seamless, resilient infrastructure. Rakuten's Saikyo Satellite Service, AST SpaceMobile's expanding constellation, and Amazon's Project Kuiper are all on track to deliver transformative value.

For investors, the time to act is now. AST SpaceMobile's stock, currently trading at a premium to its 2025 highs, offers exposure to a company at the forefront of satellite innovation. Rakuten's strategic bets on 5G and satellite services position it as a key player in Japan's digital ecosystem. Amazon's AWS and Project Kuiper, though longer-term plays, are foundational to the global satellite-to-mobile revolution.

In the next decade, connectivity will be the new electricity—ubiquitous, essential, and a driver of economic growth. Japan's satellite communications market is where this revolution is being built.

Final Call to Action:
Investors should consider a diversified portfolio of these three pillars—AST SpaceMobile for its technological edge, Rakuten for its market execution, and Amazon for its ecosystem dominance. The satellite-to-mobile revolution is not a distant future; it's here, and Japan is leading the charge.