Friday, July 7, 2017

Amazon Might Offer a 5G Smartphone Service Thanks to a Potential Partnership with Dish Network

Between its massive online storefront, streaming video service, Kindle e-readers and tablets, Alexa AI, and plenty more, Amazon has its toes dipped in a few different pools at the moment. Some could argue that the company already has enough on its plate and doesn’t need to pursue other business ventures, but according to a report that was recently published by The Wall Street Journal, it would appear that Amazon is in talks with Dish Network to enter the wireless industry with a brand-new 5G network.

Amazon (and online retailer) working with Dish Network (a satellite TV company) to kick out a 5G wireless service might seem like an oddball at first, but here’s why it just might be a perfect pairing.

For some time now, Dish Network has been buying up wireless spectrum in an attempt to add wireless smartphone service to be sold alongside its satellite TV and Internet/home phone plans that are sold through a partnership with Frontier. It’s no secret that satellite and cable TV aren’t nearly as popular or in demand as they once used to be thanks to the rise of services such as Netflix, Hulu, and even Dish’s own Sling TV, so moving to the wireless game would allow Dish to make back the money it’s losing from its shrinking satellite TV subscription base.

Dish is losing satellite TV customers to Internet-based streaming solutions

It’s clear as to why Dish Network would want to make this jump, but how does Amazon factor into all of this?

Amazon CEO Jeff Bezos and Dish CEO Charlie Ergen have reportedly grown rather close over the past year or so, and the relationship between the two CEOs has already filtered into the business side of things as Dish was the first TV provider to offer direct integration with Amazon Alexa this past May.

With a Dish Network and Amazon partnership, Dish would be able to tap into Amazon’s financial resources to keep building its wireless infrastructure, whereas Amazon could finally enter the world of MVNOs and begin to offer 5G wireless services to its Prime customers.

Both Dish and Amazon have yet to comment on WSJ‘s report on the potential partnership, but being a Prime-subscriber myself and long-time Amazon customer, this is a business move that I really hopes comes to fruition sooner rather than later.


Source: The Wall Street Journal

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