Dish/Amazon Talks Perhaps Concern a 5th Wireless Carrier, Analyst Says

If Dish Network and Amazon are in talks, as has been rumored, the end goal is likely creation of a fifth national wireless network, Macquarie analyst Amy Yong said in a note to investors Thursday. Yong also said any such discussions are "clearly preliminary," and Amazon could opt into wireless via another route and a mobile virtual network operator (MVNO) "with traditional players is still an optimal outcome." A Dish partnership would help Amazon by allowing it to offer a wireless plan as an additional benefit for Prime customers and to beef up its IoT offerings, plus possibly hasten deployment of drone delivery, Yong said. Such a deal would let Dish meet its spectrum requirements and help it monetize its spectrum holdings. The cons to building such a network include the cost -- as much as $20 billion, she said. An outright purchase of Dish seems unlikely given regulatory scrutiny and Dish's business model, Yong said, saying Amazon reaching an MVNO agreement with a wireless carrier would be the fastest and least risky route.