CEO of Dish Network Charlie Ergen and Jeff Bezos the head of Amazon.com have discussed entering a partnership as a way to enter the wireless industry, said a report published this week by the Wall Street Journal. The report cited people who were familiar with the situation.
Amazon could be helpful in bankrolling a network being built by Dish focused on Internet of Things and could offer Prime subscription members an option of paying a bit more each month for phone or connectivity plan, said the report.
On the news, shares of Dish were up over 1.2% while shares of Amazon fell 0.3%.
Dish has been purchasing spectrum or radio frequencies which carry data flowing through devices, this helps to make it a potential acquisition for wireless carriers in the U.S. such as Verizon say industry analysts.
Dish faces a deadline of the Federal Communications Commission to use its spectrum by 2021 for building its first wireless network.
Several investors have said that Ergen would likely want to be a partner with a company that could help share investment costs, even though the company, he says can build its own network alone.
A platform of IoT would likely benefit a number of Amazon Web Services products and its plans for drone deliveries, say analysts on Wall Street.
As part of this discussed partnership, Amazon would also be able to provide a one-way broadcast signal to its video streaming on Prime through airwaves of Dish.
As the mobile devices and smartphones market becomes more saturated every day, the wireless industry is currently betting that the Internet of Things will be the source of new streams of revenue.
Analysts on Wall Street added that Verizon has been pressing related to IoT, while rival T-Mobile recently released its plans for its own IoT 5G network.
An acquisition by Amazon of Dish is not likely, said the report from the Wall Street Journal. Dish did not comment on the talks, while there was no one readily available with Amazon to make a comment.
Analysts have been saying that the cable and telecoms sectors are set for a huge amount of dealing, and executives have talked openly about the possibility of mergers.
Sprint Corp the wireless company based in the U.S. was said to be holding its own talks with T-Mobile US before those plans were put on hold so it could explore a separate partnership with Comcast and Charter Communications.