Japan's $2B J-LEO satellite race pits Rakuten against SpaceX and MDA

Japan is set to choose a proposal this month for its J-LEO project, a domestically owned and operated satellite network. The initiative aims to reduce reliance on foreign-controlled systems like SpaceX’s Starlink. Three main candidates are in the running: Rakuten Mobile and AST SpaceMobile, KDDI-SpaceX Consortium, and MDA Space. The Ministry of Internal Affairs and Communications has allocated around $1 billion in subsidies for J-LEO. This covers up to half the total cost, with the winning operator required to match the funds, bringing the full project cost to approximately $2 billion. The network must be fully operational nationwide by March 2029, with all data control handled domestically.

J-LEO will enable free roaming across carriers during emergencies. It must also support video calls on regular smartphones for at least 70% of the day. Rakuten holds exclusive rights to the 700 MHz band for satellite D2D in Japan, giving it a potential edge. Meanwhile, SpaceX’s global experience and existing trial use within Japan’s Self-Defense Forces may benefit the KDDI-SpaceX Consortium. MDA Space, already selected to build next-generation GEO satellites for Japan’s Ministry of Defense, could emerge as a wildcard pick. The project aims to secure data sovereignty and improve communication resilience. The selected operator will need to meet strict technical and financial requirements. Japan’s decision is expected to shape the future of its satellite communications infrastructure.