Japan updates J-LEO plan
July 6, 2026
By Chris Forrester
The Communications and Information network Association of Japan (CIAJ) has published extra information on the proposed Japan and AST SpaceMobile scheme for a Japanese-backed low earth orbiting constellation of broadband satellites.
The CIAJ manual provides the clearest official detail yet on how the Rakuten/AST (RAST) satellite project will be funded. The manual confirms a maximum subsidy of ¥148 billion (about $920 million), with government support capped at 50 percent of eligible pre-tax project costs.
Eligible expenses include communications satellites, satellite and ground antenna components, ground facilities, launch services, launch insurance, satellite transport and storage, regulatory procedures tied to launch, and initial satellite testing. This confirms that the subsidy can directly support most of the core infrastructure needed to deploy the constellation.
Observers say the 50 percent funding cap implies that the overall eligible project budget could approach roughly ¥296 billion if the full subsidy is used. That would make J-LEO a much larger program than the headline subsidy alone suggests and could support substantial satellite procurement, launch activity, and domestic ground infrastructure.
The manual still does not disclose the final approved grant amount, number of satellites, launch schedule, RAST ownership structure, financing plan, or the amount of revenue that may ultimately flow to AST SpaceMobile. Those details will likely come through the final grant decision, Rakuten/RAST disclosures, or an AST filing or press release, suggests the report.
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