Japan is going to invest JPY 150bn, or USD 922mn, in the low-Earth orbit – LEO satellite from Rakuten Mobile, a joint venture with AST SpaceMobile, thereby stressing its push to make the domestic satellite communications infrastructure more robust and decrease any sort of dependence on foreign providers like Starlink.
The Japanese government will make use of the funding gradually throughout the next 3 years via the Japan Low Earth Orbit Satellite Communications Project – J-LEO. The Ministry of Internal Affairs and Communications of Japan won the budget in 2025 and completed its tender in June 2026.
The investment in the LEO satellite from Rakuten Mobile highlights the strategy from Japan to beef up its sovereign satellite capacity amid increasing demand for robust direct-to-device – D2D and satellite broadband services.
Japan is already a very advanced D2D satellite market globally. Now major telecom carriers such as KDDI and NTT DOCOMO, as well as SoftBank, are all offering services that are enabled by Starlink satellites. KDDI alone announced 4 million users in the first year of its service.
Doubts are rising in Asia-Pacific markets regarding dependence on Starlink, with governments reviewing their satellite plans.
Debate persists over the role of Starlink in Taiwan’s domestic satellite ecosystem. Policymakers have become worried about Elon Musk’s China business links, with the SpaceX CEO’s electric car company, Tesla, having substantial market visibility and manufacturing operations in China.
Current rules allow foreign ownership of telecom service suppliers in Taiwan to no more than 49%, which would effectively mean Starlink could not operate in the market. Some lawmakers have spoken about lowering the cap to speed satellite connectivity deployments.
But regulators remain prudent. Taiwan would require a local gateway infrastructure, such as Japan’s model, so as to keep regulatory control of satellite services, said Chen Chung-shu, the acting head of the National Communications Commission of Taiwan. Chen also warned that parts of second-generation Starlink, especially satellite-to-satellite multimedia communications, could pose additional threats to the nation’s regulatory power and territorial sovereignty.
Apparently, Australia has also expressed concern about relying on foreign satellite operators. The country was one of Starlink’s first global broadband markets and now has around 200,000 users. But Australia’s Department of Home Affairs has recently flagged accessibility risks caused by the offshore nature of Starlink.
The Australian Signals Directorate voiced similar issues, warning that the expanding influence of private satellite companies may surpass national regulatory authority and create risks relating to autonomy and national security.
Australian government agencies are continuing to expand their use of Starlink regardless of these concerns. The federal government has signed more than 12 contracts with Starlink valued at AUD 7.2 million or USD 4.9 million, including the one with the Department of Defense and the electoral commission. State and local agencies have awarded another $40 million in contracts.
Starlink is in operation over most of East Asia today, with China and North Korea a few exceptions.