IIJ’s Starlink Partnership Might Change The Case For Investing In Internet Initiative Japan (TSE:3774)

• Internet Initiative Japan Inc. (IIJ) announced that it and its subsidiary will begin providing Starlink satellite services as an authorized reseller to corporate customers in Japan starting December 1, 2025, with plans for further international expansion.
• This move brings satellite-based connectivity solutions into IIJ's portfolio, enabling enterprise clients to access reliable internet in areas with limited terrestrial networks and improving disaster resilience options.
• We will explore how IIJ's entry into satellite connectivity as a Starlink reseller could shape the company’s investment narrative going forward.

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What Is Internet Initiative Japan's Investment Narrative?

As a shareholder in Internet Initiative Japan, you have to believe in the company’s ability to evolve alongside the fast-moving connectivity sector. IIJ’s new role as a Starlink reseller could inject fresh energy into its investment story, since satellite internet strengthens its offering for clients operating in remote or disaster-prone regions. This could influence the near-term narrative, especially with the next earnings report around the corner, but it is unlikely to shift the most important short-term catalysts right away, the company’s growth continues to hinge on steady revenue, operating profit trends, and successful international expansion. Key risks, like its above-average valuation against sector peers and recent return figures trailing the broader market, remain relevant. The Starlink move may help diversify revenue, but execution risk in new markets is something to keep an eye on.
On the flip side, investors should be aware that IIJ’s valuation remains above industry averages.

Internet Initiative Japan's shares have been on the rise but are still potentially undervalued by 49%. Find out what it's worth.

Exploring Other Perspectives

The Simply Wall St Community’s two fair value estimates of ¥3,426 and an upper figure near ¥5,504 highlight strong differences in how investors see IIJ’s upside. While many focus on future catalysts like satellite service expansion, concerns about valuation against peers spark healthy debate on the stock’s prospects. Compare these viewpoints to your own expectations.

Explore 2 other fair value estimates on Internet Initiative Japan - why the stock might be worth just ¥3426!

Build Your Own Internet Initiative Japan Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Internet Initiative Japan research is our analysis highlighting 4 key rewards that could impact your investment decision.
• Our free Internet Initiative Japan research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Internet Initiative Japan's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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