Japan’s Radio Regulatory Council has endorsed a proposed 700 MHz direct-to-smartphone satellite framework, clearing a major regulatory hurdle for AST SpaceMobile (NASDAQ: ASTS) and its Japanese partner Rakuten.
Shares of ASTS rose 2% on Monday, ending August marginally in positive territory after a punishing two-month slide that saw the stock fall 22% in June and 34% in July.
Japan’s Ministry of Internal Affairs and Communications confirmed the Radio Regulatory Council’s endorsement of the proposed 700 MHz-band non-geostationary satellite communications framework for mobile phones.
Following a month-long public consultation, the ministry indicated it plans to finalize the relevant regulations shortly, marking a significant step toward commercial deployment.
The ministry’s filing directly identified AST SpaceMobile’s BlueBird satellite system by name, rejecting calls from one respondent to replace the reference with broader language covering other satellite providers.
The ministry explained that the examination standards were developed from spectrum-sharing studies based specifically on BlueBird’s radio-station specifications, and the BlueBird-specific provisions will remain as proposed.
Rakuten Mobile publicly supported the regulatory framework, arguing that direct satellite connectivity could extend service to remote islands, maritime areas, and mountainous regions while supplementing terrestrial networks during emergencies.
Rakuten Group CEO Hiroshi Mikitani confirmed plans to form an equal-stake satellite-business joint venture with AST SpaceMobile in 2026, with Rakuten leading the management of the combined operation.
The venture places Rakuten in direct competition with Japan’s larger wireless rivals, including KDDI, SoftBank, and NTT Docomo, which already offer direct-to-cell connectivity through SpaceX’s Starlink network.
Rakuten expects to begin rolling out satellite-to-smartphone service in phases by the end of 2026, targeting nationwide coverage in fiscal 2027.
Japan is expected to provide 150 billion yen, equivalent to roughly $926 million, in subsidies over three years to support the Rakuten-led network, covering equipment, ground facilities, and operational systems.
The Japanese government considers the project an economic-security priority, seeking to reduce reliance on foreign-controlled satellite infrastructure following Starlink’s critical role in restoring communications after the 2024 Noto Peninsula earthquake.
Since Rakuten lacks access to the 2 GHz spectrum used by Starlink, AST SpaceMobile’s compatibility with Rakuten’s existing 700 MHz holdings is central to the entire strategic partnership.
The regulatory momentum coincides with AST SpaceMobile scaling its BlueBird constellation, having fully deployed BlueBird satellites 12 and 13, which launched alongside BlueBird 11 aboard a SpaceX Falcon 9 earlier in August.
Each next-generation satellite carries a 2,400-square-foot array designed to deliver voice, broadband, and text directly to standard smartphones, with peak speeds approaching 200 Mbps.
BlueBird 14 is fully assembled, while BlueBirds 15 and 16 are nearing completion, with production advancing through BlueBird 48 as AST SpaceMobile targets six fully assembled satellites per month.
The company is targeting 45 satellites in orbit by early 2027, with its eventual global constellation expected to exceed 100 satellites in total.
On Stocktwits, retail sentiment toward ASTS remained “bearish” despite an 819% surge in 24-hour message volumes, reflecting heightened but divided investor attention around the stock’s direction heading into September.
One user commented, “$ASTS heading back to $100 end of Sept,” while another noted, “$ASTS up or down trends have started/ended exactly the first or last day of month. Looks like September may be good month for us.”
ASTS stock has risen 21% over the past year, with the latest regulatory development in Japan offering a potential catalyst for renewed momentum as the company accelerates constellation deployment and partnership formalization.
