ASTS Stock Logs Best Day In Nearly 2 Years: Japan’s $926M Push For Rakuten-AST Satellite Network Sparks Rally

• Japan will reportedly provide $926 million in subsidies to a Rakuten-led satellite network with AST SpaceMobile.
• The funding would support equipment, ground facilities and systems needed to launch and control low-Earth-orbit satellites.
• Japan sees the project as an economic security priority as it seeks to reduce reliance on foreign networks such as Starlink.

Shares of AST SpaceMobile (ASTS) surged to their best day in nearly two years on Monday after Japan’s $926 million satellite communications push put its Rakuten partnership back in the spotlight and raised hopes for a major direct-to-mobile rollout.

ASTS stock jumped 21% on Monday to $86.77, logging its second straight session of gains. 

Japan’s $926M Subsidy Push Lifts ASTS Stock

According to Nikkei, Japan’s government is expected to provide 150 billion yen ($926 million) in subsidies to a Rakuten Group-led consortium developing a homegrown satellite communications network with AST SpaceMobile. The subsidies are expected to be provided over three years and will help fund equipment procurement, ground facilities, and systems needed to launch and control a constellation of low Earth orbit satellites. A formal decision by Japan’s Ministry of Internal Affairs and Communications is expected soon.

Rakuten plans to partner with AST SpaceMobile to build a direct-to-mobile satellite network in Japan, allowing ordinary smartphones to connect directly to satellites without specialized hardware.

Rakuten Chairman and CEO Hiroshi Mikitani told Nikkei that the company plans to form a new joint venture for satellite operations with AST SpaceMobile in 2026. The two sides are expected to hold equal stakes, with Rakuten leading management. Rakuten Mobile has also been targeting limited-service use of AST satellites in 2026, with broader nationwide coverage expected in fiscal 2027.

ASTS Helps Japan Cut Starlink Reliance

The project is being developed as an economic security priority. Japan wants a domestically operated satellite communications network at a time when foreign players, especially SpaceX’s Starlink, dominate the market. The need became clearer after the 2024 Noto Peninsula earthquake, when Starlink was used to restore communications until cable connections were repaired.

Direct-to-mobile satellite service could also help connect mountainous regions, remote islands, and disaster zones where ground-based infrastructure is difficult to build or may be damaged.

Japan is also preparing the regulatory path for the Rakuten-AST network. The communications ministry indicated last week that it would allow direct satellite communications in the 700 MHz band, with related rules expected to be revised in September. This matters since Rakuten already uses the 700 MHz band for ground-based mobile service. The band could now support direct links between ordinary smartphones and low-Earth-orbit satellites.

Rakuten is turning to AST SpaceMobile as it has not been allocated the 2 GHz band used by Starlink, making AST key to its effort to build a Japan-backed direct-to-cell network.

How Do Retail Traders Feel About ASTS?

On Stocktwits, retail sentiment for ASTS jumped to ‘bullish’ from ‘neutral’ levels a day ago amid a 669% jump in 24-hour message volumes.

One user said, “$ASTS this deal with Japan will prioritize launch cadence. Their Mitsubishi H3 rocket can take up to 3 BB's per launch.”

Another user said, “$ASTS back to $130 we go! Just wait til the Japan news comes out too. $200+ by August.”

ASTS stock has jumped 76% over the past year. 

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