Amazon/Dish IoT Partnership Makes Some Sense, Citi Analyst Says

Amazon and Dish Network may have overlapping IoT interests, bolstering speculation that Amazon Web Services could be an anchor customer for Dish's planned IoT network, Citigroup's Michael Rollins wrote investors Tuesday. He said Dish's IoT network decision (see 1703080026) "could make a lot of sense" since IoT standards should let companies use higher power to increase cell radius, decreasing the number of cell sites needed, and network infrastructure likely could be converted into a 5G network. Dish likely is looking to maintain optionality for its spectrum and interested in monetizing spectrum holdings, and Amazon is interested in expanding AWS offerings and differentiating from competitors, the analyst said: An Amazon/Dish partnership would allow the two companies to share risk and leverage high-cost fixed assets they separately own. Possible models could include a platform company like Amazon being a strategic investor in the network, or an outright acquisition of a wireless network or spectrum, Rollins said. A nationwide IoT/IP network could run over Amazon Web Services, and numerous Amazon products would benefit from having low-bandwidth communications or an IoT platform, he said.