How Dish Network Views Amazon’s Connectivity Strategy
Amazon could be partnering with Dish Network
In the previous article, we saw that Facebook (FB) and Google (GOOG) are looking at the connectivity business by focusing on technologies that can provide high-speed Internet at a lower price. Amazon (AMZN) is also experimenting with connectivity.
In July 2017, there were reports that Dish Network (DISH) and Amazon could be exploring a wireless partnership. The Wall Street Journal reported that Amazon could be offering a special price for Dish Network’s wireless service to its Prime members. The report added that Amazon could use Dish’s wireless network for its web-connected devices.
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Dish Network’s view of Amazon’s connectivity needs
During the company’s fiscal 2Q17 earnings call, Dish Network (DISH) was asked to comment on its possible partnership with Amazon. Dish noted out that Amazon Web Services (or AWS), Amazon’s cloud computing unit, uses both wireless and fiber connectivity. Dish noted that considering that Amazon’s Prime Video service is primarily watched on mobile devices, connectivity is an important consideration for Amazon.
As a result, Dish said that Amazon would have to look at connectivity as a part of its business either through an acquisition of a wireless company or by entering a spectrum lease.
Amazon Web Services saw a double-digit growth rate in 2Q17, which comprised Amazon’s entire profits for the quarter. Amazon is also experimenting with faster delivery of its products through drones.