Rakuten satellite project to receive up to $912 mln in Japan govt grant

The Japanese government will grant up to 148 billion yen ($912 million) to Rakuten Group TSE:4755 to help it build a satellite communications network, industry group Communications and Information Network Association of Japan said on Tuesday.

Rakuten, an e-commerce, financial and telecommunications conglomerate, is in talks with AST SpaceMobile NASDAQ:ASTS of the United States to form a joint venture for the project, a Rakuten spokesperson said.

•Japan currently depends on SpaceX's NASDAQ:SPCX Starlink and other services offered by foreign companies for low-orbit satellite communications, and it aims to nurture home-grown operators to boost its economic security.

•Low-orbit satellite communication services enable the use of smartphones and other telecommunication devices even when users are out of the range of cellular base stations or a natural disaster has knocked those base stations out of service.

($1 = 162.3300 yen)