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

Rakuten

Yesterday 14:55

TOKYO, June 30 (Reuters) - The Japanese government will grant up to 148 billion yen ($912 million) to Rakuten Group 4755.T 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 ASTS.O of the United States to form a joint venture for the project, a Rakuten spokesperson said.   

•Japan currently depends on SpaceX's SPCX.O 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)

 (Reporting by Kiyoshi Takenaka; Editing by Sharon Singleton)
 ((kiyoshi.takenaka@thomsonreuters.com;))