AST SpaceMobile (NASDAQ: ASTS) shares surged 21% on Monday. The stock closed at a price of $86.77. This rally followed reports that the Japanese government will provide a 150 billion yen subsidy to a Rakuten Group-led consortium. The funding represents approximately $926 million in government support.
The Japanese government will distribute the subsidy over a three-year period. These funds will finance satellite equipment, ground facilities, and constellation control systems. Rakuten and AST SpaceMobile plan to launch a joint venture in 2026 to operate the network.
Japan considers the project a matter of economic security to rival foreign providers like SpaceX's Starlink. The network allows standard smartphones to connect directly to satellites. This technology provides essential communication for mountainous regions, remote islands, and disaster-stricken areas.