Even though there is still no final deal and the representatives of both companies Jeff Bezos (Amazon CEO) and Charlie Ergen (Dish Network CEO) have not highlighted the terms, it is obvious that there are some great benefits that Amazon can reap in case this wireless partnership happens.
First of all, it may change the value of Amazon stocks in the market. This is quite natural because a partnership like this can provide many advantages for this company.
What makes this potential deal interesting for Amazon?
As we said before, Amazon and Dish have not officially confirmed that there are negotiations for partnership or acquisition. Yet, this can’t stop us from creating a hypothesis about the benefits that Amazon would reap from it.
First of all, Amazon might be able to share the cellular signal with Dish which will ultimately help them manage a fleet of drones used for delivery. Next, they can also provide a monthly cellular plan offer for their Prime users.
According to some experts, Amazon could use this opportunity to provide one-way broadcast for their Prime videos. Today, Amazon Prime video depends on Internet service providers.
With the help of Dish cellular technology, they can also include location-based responses for all the devices that include Alexa technology.
We should not forget to mention that this partnership could help Amazon make a fully functional Internet of Things network. The aforementioned fleet of drones that
Amazon could control from one place is one aspect of the Internet of Things. Namely, these drones could get in touch with each other while they are delivering goods.
At the same time, users could use their Echo devices to communicate with the drones. Truth be told, the vast majority of examples we have mentioned in this article are just enhancements to the existing services that Amazon provides.
The only exception is the possibility of starting an independent phone service for their Prime users. In addition, we should also mention that the drone delivery service is still in an experimental phase.
To put it simply, a possible partnership between Amazon and Dish would help Amazon get better management opportunities for services that they are already providing, but creating brand new sources of revenue would be more difficult.
There is still no news about the cost of this project. In other words, we still can’t speculate how much money Amazon might spend to get a deal like this. Generally speaking, creating wireless networks the way Dish does it is quite costly. In this case, we are talking about an Internet of Things network, so the entire venture can be even more expensive.
It’s good to know that Dish is currently working on an exclusive, modern wireless network. This network will become available in 2020. At the beginning of 2017, Dish was able to raise one billion dollars with the help of a debt offering to start building this network. As a matter of fact, this project has attracted T-Mobile and these two companies have been talking about a merger for a few months now. However, the talks are officially paused now.
No one can say whether Dish and Amazon will create a partnership, but a partnership like this can bring technology to another level. Amazon is focused on less costly solutions and Dish is focused on developing wireless technology without calculating the final price. We will have to wait and see whether these two successful companies will find a solution.