Japan is expected to select a proposal this month for its planned J-LEO direct-to-device (D2D) satellite network, a government-backed initiative aimed at establishing a domestically owned and operated low Earth orbit (LEO) communications system.
The Ministry of Internal Affairs and Communications (MIC) has allocated approximately $1 billion in subsidies for the project, covering up to half of the total investment. The selected operator will be required to provide matching private funding, bringing the estimated total project value to around $2 billion.
Building a Domestic Satellite Network
The J-LEO initiative is intended to provide Japan with a sovereign alternative to foreign-operated satellite communication services.
As an island nation exposed to earthquakes and other natural disasters, Japan already benefits from direct-to-device services offered by mobile network operators KDDI, SoftBank and NTT DOCOMO through partnerships with SpaceX’s Starlink network.
However, the government has stated that a domestically controlled system would strengthen data sovereignty while reducing reliance on foreign-owned satellite infrastructure.
The project requires the selected operator to deploy nationwide service by March 2029, operate all network and data management functions within Japan, support video calls on standard smartphones for at least 70% of the day, and enable free roaming between mobile operators during emergencies and natural disasters.
Following Earlier Sovereign Space Investments
The J-LEO program follows Japan’s earlier investment in the Quasi-Zenith Satellite System (QZSS), which complements the U.S.-operated Global Positioning System (GPS).
Unlike QZSS, however, the new satellite communications network is expected to be fully owned and operated by Japanese private industry.
Multiple Consortia Competing
The Ministry of Internal Affairs and Communications announced the subsidy program in January and plans to select a recipient before the end of June.
Among the leading contenders is a partnership between Rakuten Mobile and AST SpaceMobile. Rakuten has announced plans to establish a Japanese joint venture with AST SpaceMobile and acquire satellites to build the network. The proposal received additional attention after a ministry advisory subcommittee approved the use of the 700 MHz spectrum for satellite D2D services, a frequency band currently held exclusively by Rakuten among Japan’s four mobile network operators.
Another candidate is a consortium led by KDDI and SpaceX. KDDI already offers direct-to-device connectivity using the Starlink network, providing an existing operational foundation, although the proposal may offer less domestic control than competing bids.
A third potential bidder is MDA Space, although the company has not publicly identified a Japanese telecommunications partner. MDA Space recently announced that Mitsubishi Electric selected the company to develop the next generation of geostationary satellites for Japan’s Ministry of Defense.
