3 Things to Expect from the Amazon and Dish Network Partnership

Amazon is evolving faster than anyone could have imagined. After buying Whole Foods, Amazon is now in talks with Dish Network to partner for a wireless business. Sources familiar with the deal said that Amazon chief Jeff Bezos and Dish Network CEO Charlie Ergen met to discuss the partnership. The Wall Street Journal reported that the meeting was likely about Amazon entering wireless business.

Amazon (AMZN)

Details of the Amazon and Dish Deal

 

While it is still a hush-hush affair, sources close to the deal suggest that Amazon could catalyze a new initiative by Dish. The new network will be focusing on IoT and Amazon plans to bring this network to its Prime subscribers. Amazon could charge its Prime customers slightly more to offer them a phone plan or connectivity plan. Following the WSJ reports, Dish shares went up by 1.2 percent.

Dish Needs To Work Quick

 

Dish Network needs to work quickly on this plan as it must face a deadline set by the Federal Communications Commissions. The company must use the spectrum it owns to build a wireless network by 2021. It has recently been buying spectrum to create a new wireless network. Insiders suggest that this service is being built to be sold to a bigger wireless carrier like Verizon eventually. Ergen has said that the company can build the network on its own. However, it seems that Dish will prefer finding a partner with deep pockets, like Amazon.

Why Would Amazon Partner With Dish?

 

Amazon is no more a retail giant. The company is including tons of services and smaller businesses in its portfolio rapidly, marking its journey as a monster corporation. Apart from drones, Kindle device, AWS, and its e-commerce projects, Amazon has event started investing in a shipping fleet. If Amazon can partner with a wireless network provider, it could significantly affect AWS products. IoT could be a great addition to AWS products, making Amazon portfolio richer.

Amazon could handle real-time changes in delivery routes, status, and even direction quickly with such a network at its disposal. There will be seamless web connectivity for all Amazon services and products. However, Amazon will not be benefitting only through these means. It is rumored that the company could even get a one-way broadcast signal on Dish for its Prime video services. 50 percent of TV customers are already on Prime. Therefore, collaborating with Dish will offer double the benefits to Amazon.