US-Japan Statement Praises AST SpaceMobile and Rakuten Partnership

A joint statement on the "Technology Prosperity Agreement" between the United States and Japan praised the collaboration between Japan's Rakuten Group and the US company AST SpaceMobile in low Earth orbit satellite infrastructure, directly mentioning the company by name in the statement.

The statement followed a meeting held on October 4 in Kyoto between White House science chief Michael Kratsios and Japanese Minister Toshiharu Furukawa, according to a report by 24/7 Wall St.

Japan's Ministry of Communications conditionally selected the joint project with Rakuten as part of its "J-LEO" initiative for low Earth orbit satellites, an initiative valued at nearly $1 billion, subject to obtaining the necessary approvals.

AST SpaceMobile's stock rose 6.69% to $62.35 at 1:15 Eastern Time, below its morning high of 8.38%. This collaboration reflects a growing trend among nations toward securing direct-to-cell satellite communications. The company's inclusion in an official statement between the two countries indicates that the collaboration has elevated from a corporate level to a governmental level.

What Do These Terms Mean?

Low Earth Orbit Satellites: Satellites that orbit at a relatively low altitude above Earth, reducing latency and enabling faster communication.

Satellite Infrastructure: The complete network of satellites and ground stations required to provide a telecommunication service.

Joint Venture: A business entity established by two or more parties to share costs, profits, and risks.

Direct-to-Cell Connectivity: A technology that connects a standard mobile phone directly to a satellite without requiring specialized receivers.