Dish Should Use Its Spectrum for a Network Supporting Commercial Drones, NPD Says

It would be a mistake for Dish Network to devote large quantities of wireless spectrum to the IoT, NPD analyst Eddie Hold said in a blog post. Dish's Charlie Ergen, who since stepped down as CEO to focus on the wireless business but remains chairman (see 1712050016), said in November that Dish was on track to deploy its narrowband IoT network in 2018 (see 1711160057). NPD cautioned against the move as it relates to smart home and smart meters. Many utility companies already have determined their IoT strategy and are installing smart meters today, Hold said Thursday. “By the time Dish builds out the necessary network, most of the near-term market opportunity will have been tied up in long-term contracts.” Hold suggested instead that Dish provide a cellular network to support long-range management of commercial drones. That inevitably leads to Amazon, which has led the way on drone use for commercial delivery. Many commercial drone opportunities are local, but Amazon’s “implied strategy around drones is far broader, both in terms of aspirations and geographical scope,” Hold said. Amazon needs a wireless strategy underlying the service, he said, offering the possibility of Amazon working with an existing mobile carrier to create an “IoT service-level agreement to support the drone needs.” Amazon and Dish could establish a joint venture to build the new wireless network, which could be a venture that allows Amazon to support its drone strategy, or a full-scale partnership, wherein the two companies combine forces in mobile “to build something far greater, and with more of a consumer focus,” Hold said. Merging the assets would allow Dish and Amazon to enter the mobile market “in a far more aggressive way, creating a competitor that will threaten the current status quo.”